Newcastle-based Ryecroft Glenton Corporate Finance has advised on a Management Buy Out (MBO) at a successful UK staffing business, which has led to a strong period of growth.
Impact Recruitment Ltd, which has three offices across the East Midlands and employs 28, was founded in 2002 by shareholders, Neil Kitchener, Nigel Buller and Paul Hooper.
As a result of the MBO, Neil, the Finance Director, and Paul, who is Operations Director, have acquired the shareholding of their fellow co-founder, Nigel Buller. Nigel will remain with Impact as a consultant focusing on sales and new business.
Placing high-quality candidates in sectors including supply chain, logistics, technical and engineering, Impact has many high-profile clients including Stanley Black and Decker, Dr Martens and Howdens Joinery. It delivered a turnover of £8.0million in the year ending 2015 and is on course to deliver turnover of £9.2million by the end of this year.
To achieve its current and future growth, the business has implemented a new three-year strategic plan, with the support of Ryecroft Glenton Corporate Finance.
Ryecroft Glenton Corporate Finance advised Neil and Paul on the MBO, led by partner Carl Swansbury, with tax advice from Charlie Burton, and will continue to assist the business with the implementation of its growth plans. Legal advice was provided by Peter Millican and Jabid Jaigirdar, Solicitor at Peter Millican Law in Newcastle.
Nigel Buller was advised by Martyn Smith, partner at PHM Corporate Finance, with legal advice from David Bacon of Borneo Martell Turner Coulston.
Carl Swansbury, Partner at Ryecroft Glenton Corporate Finance, said: “We were delighted to advise Neil and Paul on the acquisition of their co-founders shareholding and look forward to working with them to develop and execute their business plan. Impact is an excellent example of the entrepreneurial talents that exist in the independent staffing sector and all of the founders should be praised for the quality of the business they have built.”
Neil Kitchener, Finance Director at Impact Recruitment Services, said: “We have built a respected and successful business with a strong client base and portfolio of candidates, which has given us a springboard for further growth. Nigel has played an integral role in our success and we are very pleased that he is staying with the company to maximise on new business opportunities, which is already delivering results.
“In the first eight months of 2016 we have experienced year-on-year turnover growth of 17% and have increased the number of temporary workers by 20%. We have also secured a number of new clients, which supports our increased performance and profitability.”