Leaders restructure to enable greater growth by acquisition
Leaders - the UK’s largest independent specialist residential lettings and property management specialists - has restructured, with a £48 million management buy-out and expansion financing backed by Bowmark Capital, ending its 5 year association with its former investor RO Group.
Through a combination of strong acquisitive and organic growth, Leaders has grown every year since it was established in 1983 and now has 42 branches across the South, managing more than 15,000 properties for around 13,000 landlords. It has the largest active tenancy base in most of the regions it serves, and the brand has become synonymous with the highest standards in residential property lettings and management.
Says Leaders’ managing director, Paul Weller, who remains a significant shareholder in the business: “We are delighted with this important restructure, which provides us with a substantial acquisition finance credit line. This will enable us to continue the rate of acquisition we have achieved over the last five years well into the future without the need to agree new facilities each year.
“In today’s uncertain banking world, it is a significant achievement to have secured these long term acquisition facilities which will ensure our future growth, and this is testament to the banks’ confidence in our business, our management team and our employees.”
Bowmark is investing £21.2 million of equity for a significant majority interest in the company. Lloyds TSB Corporate Markets acquisition finance and RBS Financial Sponsors are co-leading a £14 million senior debt facility. An additional £12 million of further equity and debt funding is being made available for future acquisitions. Bowmark’s knowledge of the sector and its experience of buy-and-build investments were key to the success of the transaction.
Bowmark partner, Mark Salter said: “Leaders is a market-leading business with a strong competitive advantage. The opportunity to continue the company’s buy-and-build strategy and drive further value creation is compelling, given the fragmented nature of the lettings market. There are an estimated 8,500 lettings branches across the UK, the majority of which are small, independent agencies, and the Leaders management team has a strong track record of transacting and assimilating acquisitions.”
Since 2005, Leaders has bought and integrated 31 businesses, branches or portfolios, and has developed a leading edge IT and operational infrastructure to enable it to assimilate and capitalise on acquisition opportunities. The company is well-respected for the way in which it carries out acquisitions, offering business owners a fair deal and a smooth transition for landlords, tenants and any employees transferring with the business.
Says Paul: “For those lettings business owners considering a disposal, Leaders not only gives vendors the assurance of a smooth and professional transaction, but for those wishing to remain in the business, it brings the opportunity to develop a challenging career with a successful and ethical company that is really going places, but retains a strong family business ethos, and a dedication to providing its clients with an expert, but local and personal service.”
Following the restructure, Leaders now plans to acquire further letting businesses across a wider geographical area than before to continue its successful expansion. They will consider any good quality lettings business that fit in with and fulfill the company’s philosophy of providing a quality, trustworthy service. Please visit: http://www.leaders.co.uk for more information.
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