Strategic Carve-Out of Air-End Repair: Delivering Seamless Transitions and Standalone Growth
Creating Value In a Standalone Entity
Air-End Repair was acquired from an Austrian industrial conglomerate as a strategic carve-out, creating a standalone UK-focused business. The transaction required both a seamless operational separation and the establishment of independent systems, governance and supplier relationships from day one.
The Challenge
As a carve-out, the business had been operating within a larger group structure, reliant on shared systems, infrastructure and support functions.
Key challenges included:
- Transitioning the business to operate independently immediately upon completion
- Ensuring continuity of operations and service delivery with no disruption to customers
- Retaining and motivating the existing management team through a period of change
- Replacing group-wide systems, including finance and operational infrastructure
- Establishing new relationships with third-party providers across pensions, insurance and supply chain.
Investment in People, Systems & Processes
Our commitment always extends beyond acquisitions. Substantial investments were made in people, systems and processes.
We worked closely with management in the run-up to completion to ensure that the business was fully prepared to operate on a standalone basis from day one.
People: The existing management team was retained and incentivised to remain with the business, ensuring continuity of expertise and leadership whilst clear alignment of objectives between shareholders and management was established from the outset.
Systems: A new ERP system was designed and implemented ahead of completion. The system was ready to go live on the day of completion ensuring no disruption to financial reporting, immediate operational control and a clean separation from legacy group systems.
Processes:A detailed transition plan was implemented covering; supplier communications, customer continuity and separation from the parent group. New arrangements were negotiated with pension providers and insurance providers, and operational processes were reviewed and adapted to suit a standalone SME structure.
Successful Exit with Business Positioned For Long-Term Growth
We exited to the management team after 17 months, achieving a 2x money return. At this point the business was operating successfully as a standalone entity and positioned to capitalise on future growth opportunities.