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Back to Case Studies > M3 Helps SmartPads acquire rival firm


When the chance to buy a rival manufacturing company came up, Douglas White saw it as a great opportunity to increase his market share.
 

Douglas is the managing director of Smartpads Ltd, a Bristol-based distributor of buffing, polishing and sanding back-up pads for the power tool consumables industry.


But Douglas and his team were unable to convince their bank to provide the finance they needed to buy larger rival Flexipads Ltd when it came up for sale.


So for help they turned to M3 Corporate Finance who acted as lead advisors for the acquisition. M3 worked closely with the Smartpads management team to structure the deal, identify potential funding sources, assist in negotiations with the vendor and a funding source, and manage the timetable and deliverables due from the other professionals involved.


Thanks to M3 a mix of asset and cash flow funding was secured on behalf of Smartpads which enabled the firm to acquire Honiton-based Flexipads.


"Buying a business three times the size of our current operation was quite a daunting challenge and we didn't know the best way forward," said Douglas. "We still had customers to please and orders to get out so we didn't have the time - or the expertise - to explore all the various finance options available.


So when our original bank turned us down, M3 stepped in to help us prepare a more professional proposal for what was a good deal. They guided us through the entire acquisition process and helped us secure funding from an alternative source - we couldn't have done it without them."


"M3 did all the hard work so that we could concentrate on running our existing business."