RVW Run with the Baton after Management Buy Out

A new management team at RVW Consulting, a multi-disciplinary engineering consultancy firm looks back over the last 10 months after a management buyout.

RVW Consultancy, based in Cardiff, provides an end-to-end service for clients, from site acquisition, planning, detailed design, construction support and fit out.  The firm’s disciplines include civil, structural, geo-technical and geo-environmental planning plus complementary services like development planning, traffic and highways engineering, conservation and project management.

The 3 year succession plan

RVW incorporated in 2001, having run as a partnership since 1989. Founders Ray Hancock and Simon Walrond first started to think about a succession plan in 2014-15 and looked to their in-house team for a good solution. Ray and Simon sought specialist advice from KTS Owens Thomas, a leading finance firm based on Cardiff Bay who are now part of The Baldwins Group with offices across South Wales, who then supported them throughout the succession plan.

Significant time was spent with KTS Owens Thomas, gaining an understanding of shareholders’ internal business housekeeping needs, a valuation for the business, an understanding of the process from all perspectives, knowledge of what funders would look at in terms of historical financial performance and forecasts, the team and their attributes and the future opportunities for the business and importantly how a management buy-out could be structured, funded and executed.

Barney Procter, Director at RVW commented “KTS Owens Thomas led the process from beginning to end. Following an initial approach from Simon and Ray to Andrew Britton and me, Tanya Wilson (KTS Owens Thomas) provided financial projections, which enabled a realistic valuation. This valuation was affordable and structured with an appropriate amount of risk for all parties, which was used when approaching potential funders.

The initial deal structure put forward by KTS Owens Thomas was reviewed and accepted by Finance Wales, which is testament to the work KTS Owens Thomas had done.

KTS Owens Thomas steered us through the MBO process, finding a suitable funder, recommending solicitors and acting as mediators keeping the process on track to a successful completion.

The financial acumen provided by KTS Owens Thomas, lead to a fair and affordable MBO, ensuring a bright future for the business and staff. Their support has been tremendous, with genuine understanding of our business needs.”

Tanya Wilson, Associate Director at KTS Owens Thomas commented on the buyout;

“We were delighted to have assisted Andrew and Barney in acquiring the business. Our team of corporate finance experts at KTS Owens Thomas supported them through the entire process from drafting the business plan, preparing financial forecasts, delivering the proposal to funders, following due diligence and then legal completion.  I think it’s fair to say Andrew and Barney benefitted from a well-planned and thought through structured management buy-out with support at every stage.  Essentially, we enabled them to be prepared for what can be a very stressful and demanding process whilst running their work commitments. We believe RVW has excellent management with a clear strategy to leverage its blue-chip customer base to grow the business and take advantage of the opportunities in the future.”

Finance Wales supported the MBO with a seven-figure financial package. Senior Investment Executive, Alun Thomas helped structure the deal. He said:

“This is a well- run business and the planning and preparation led to a smooth succession process. KTS Owens Thomas did a great job and Finance Wales was delighted to support. We see a bright future not only for Barney and Andrew but for all in RVW and look forward to supporting more succession deals of this type in the future.

Finance Wales is committed to supporting succession in Wales for all sizes of business and now has a dedicated succession fund to do this”