Client profile: DVS Limited
Formed in 2003, DVS Limited established itself as one of Europe’s most successful multi-brand distributors of electronic surveillance products. A fast paced and energetic organisation, DVS has embraced innovative technological advances in the industry and is now seen as one of the industry’s most proficient distributors of IP CCTV products. DVS has built an enviable reputation in the industry that has helped to ensure that many of the industry’s leading manufacturers have decided that DVS is the best partner to introduce their products to the professional installer.
The shareholder directors built the business with significant growth and a high level of success. The business became recognised as a large operator in the sector and there were opportunities to grow even further. However, having led the business to its current stage, the existing owners decided that they wished to retire and to pass the business to new owners in order that it could achieve this future potential whilst they perused different interests. The business had a strong Management Team which offered the existing shareholders the opportunity to meet their personal aspirations and see the company and its ethos continue into the future. This, together with continued support from the existing shareholders, one of whom remained full time with the business, would ensure the continued success of the business.
How we helped
We supported the vendors through the process through the following:
- Advising the shareholders on the structure of the transaction, including any elements of deferred consideration or earn out;
- Managing contact with the acquiring management team and their advisers as appropriate;
- Reviewing documentation such as the Heads of Terms and Sale & Purchase Agreement from financial and commercial points of view;
- Supporting the directors to provide financial information for the due diligence process;
- Providing input into warranties, indemnities and contracts of employment;
- Liaising with legal advisors and other parties as required;
- Providing the vendors with a commercial and financial sounding board, which aided both sides to continue running the business during the process; and
- Assisting with negotiations in relation to deferred consideration, normalised working capital, and intercreditor arrangements.
The business was successfully sold to the management team within a short timescale ensuring that the disruption that is inevitable in these circumstances was kept to a minimum. Both the sellers and the management team achieved their aims in the transaction.
What the client said about us
“Broomfield & Alexander’s support was invaluable during a challenging process and it enabled us to concentrate on continuing to manage the business. Having never gone through the process before, having easy access to someone who will listen, guide and explain clearly was crucial.”
Shaun Bowie, Exiting Managing Director, DVS Limited