MBO deal for Cumbrian business

The pensions and financial planning subsidiary of Cumbrian Insurance Brokers C H Jeffries Limited has been sold in a deal which will help bolster the future of independent SMEs in Cumbria.

David Foster, a local financial adviser with C H Jeffries (Pensions and Financial Planning) Ltd for 20 years and managing director for 10, decided to make the bold move and buy the business after Willis Group, which bought Cumbria's largest independent brokers in 2004, decided it did not require the pensions and financial planning arm of CH Jeffries as part of its local operation.

David Foster says "When I discovered that Willis was willing to sell the pensions and financial planning arm of CH Jeffries, I recognised a chance to continue and develop the work that had already been done in the region. Over the years through working for C H Jeffries I have built up a good reputation and a strong standing in areas such as investment advice and pensions provision with clients. I want to
build upon the key strengths already present in Cumbria and develop this commitment within the region."
 
With the guidance of Alison Watts, Corporate Finance partner at Armstrong Watson and David McGill of Burnetts solicitors, David entered into talks with the Willis Group and after months of negotiations, a deal was completed for an undisclosed amount.

The Management Buy-Out (MBO) has now successfully ensured the future of the Cockermouth business and kept it within the regional economy.
 
Alison comments: "This is a great boost to the local economy. Not only does it secure the company as an independent financial advisory business, but it is also good news for the job market with a long-term future secured for the financial sector in this part of Cumbria."

David Foster comments: "I have been very pleased to be part of the Willis Group and this transaction. I had a good working relationship with the team and this helped the transaction complete smoothly. Armstrong Watson and Burnetts' approach of drawing upon their wealth of experience and resources to provide well balanced and commercially pragmatic solutions for their clients fitted my needs perfectly. This is the first time I have been involved in a transaction of this nature and having the proactive support network of Armstrong Watson and Burnetts behind me meant that the deal went through with very few problems."

David McGill from Burnetts adds: "Due to the nature of an MBO it is essential for a member of the management team such as David Foster to take both financial and legal advice. It is vital that the team appoints competent lawyers with an established management buy-out track record.  The legal documentation involved in an MBO can be complex notwithstanding the buy-out team's knowledge of the company concerned. In David Foster's case we were happy to help resolve the many issues which arose and to see the matter complete to everyone's satisfaction.

He continues: "MBOs can be tricky as the management team is negotiating with its employer and if the deal falls through it can potentially make the future difficult. A good team of advisers can take heat out of the situation avoiding the personal involvement when negotiating with employers."

Following the deal David Foster is now implementing long-term plans building upon the localised, personal touch he has developed over the past 20 years and is looking to relocate the business and six members of staff to new premises on the Dovenby Hall Estate in Cockermouth.

"I had a great team behind me and I am looking forward to working with Armstrong Watson and Burnetts to develop the business and turn it into a leading regional independent."

Willis continues to support the Cumbrian region through the growth of its general insurance business from its local Cockermouth and Carlisle operations.

Notes to Editors:
Armstrong Watson is one of the leading providers of accountancy, business and financial advisory services to owner managed businesses across the North.

The company has 14 offices throughout the north of England and south west Scotland and employs over 300 staff in a variety of specialist divisions such as: Business Enterprise Services, Corporate Services, Tax, Corporate Finance, Payroll, Insolvency & Corporate
Recovery, Agriculture, Computer Solutions and Office Equipment, Financial Planning and Wealth Management.

Armstrong Watson is registered to carry on audit work by the Institute of Chartered Accountants in England and Wales and is authorised and regulated by the Financial Services Authority.

A 2005 survey by Accountancy Age has ranked Armstrong Watson as 27th in a list of the UK's top 50 accountancy firms. 

To visit the Armstrong Watson website go to: www.armstrongwatson.co.uk.

Issued on behalf of Armstrong Watson by Beattie Communications.