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Sale of CNC engineering business

Anderson Shaw business brokers is pleased to announce that it has advised on the sale of a specialised CNC engineering business to Consolidated Rail Limited.

Based in the Midlands, the CNC engineering business had been founded in 1999 and provides services mainly to the F1 and motor sectors. After 20 years its owner decided that it was time to sell to allow him to start developing other family interests he has. The business had grown to close to £1.5M sales and had built a strong reputation for its technical ability and quality of service; both key elements in attracting strong interest from buyers.

Having decided to sell the business the owner approached Anderson Shaw in mid-2019 and the business was marketed in the start of Autumn of the same year. There was significant interest in the business and the eventual buyer was found within a few weeks and Heads of Terms were entered into in late December 2019. The DD and legal processes commenced in Jan 2020, but the onset of the COVID-19 virus put a temporary halt to the process until it resumed in late May; the sale of the business took place in August 2020.

The founder, who has a continued involvement in the business, is delighted with the sale which allows him to commence on the other family plans he has in place.

The buyer commented “I have just completed on the acquisition of a specialised Midlands-based CNC engineering business, for which Anderson Shaw acted as Business Transfer Agents on behalf of the Sellers. My dealings with Anderson Shaw were with Peter Wilson who I found to be extremely professional and who dealt with both his Client and I in a very open and honest basis. I was initially very impressed with the IM provided and the level of information supplied in it, which was followed up by speedy and full responses to all my further enquiries.

After a couple of meetings with the Sellers and Peter we agreed Heads of Terms in December 2019 and started off the DD work in January 2020, only for the whole process to be halted when the COVID-19 virus hit. Peter ensured that during this period he kept communications strong between the Sellers and I, by way of regular financial updates from the business, and conference calls between us all; without this I fear the deal may well have drifted away from both the Seller and I. Once we were comfortable to re-start the process Peter ensured that we were up-to-date with all my information requests and acted as a strong conduit between the Sellers and I, helping both of us through the inevitable hiccups that occur along the way.

We eventually completed in early August and I would be happy to recommend Anderson Shaw as a very professional and experienced organisation in any similar transaction, for either Buyer or Seller; I hope that I will be able to work with them again in the future as I continue my own business expansion plans.”

The Anderson Shaw team was led by Peter Wilson and acted as corporate finance advisers to the sellers.

Anderson Shaw has offices on the outskirts of Stratford-Upon-Avon and provides business broker and corporate finance services for clients throughout the Midlands and the UK.

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