Our Restructuring and Advisory Division advises on sale of Grosvenor Credit Management & Investigations to its employees
Our cross-border advisory firm is thrilled to announce its successful role in delivering the sale of Grosvenor Credit Management & Investigations (GCMI), a prominent vehicle collection company, to an Employee Ownership Trust (EOT). This marks a significant milestone for GCMI, as its founder empowers the company’s workforce to deliver the next phase of its journey.
The transaction was delivered by our Restructuring and Advisory Division’s Corporate Finance experts Managing Director Adrian Howells, Manager Richard Hill and Assistant Manager George Fawcett. The team was supported by Daniel Sladen, Managing Director and Dominic Lay, Associate Director from our Restructuring and Advisory Division’s sister company, K3 Tax Advisory, and Managing Director Karl Holmes of K3 Debt Advisory, who secured third-party funding from Allica Bank.
GCMI is a specialist vehicle logistics company, which was established in 2004 to provide vehicle leasing companies with outsourced services, including vehicle collection, asset recovery, process serving, enforcement and tracing of customers.
Ben Lee, founder and sole shareholder of GCMI, realised the majority of his investment and will remain Managing Director of GCMI to provide continuity to his customers and ongoing support to his team. Meanwhile, Lisa Pugh and Nigel Jackson will join Ben on the Board of the TrustCo, acting as trustees of the EOT.
The sale of shares to an EOT is a transformative step that empowers employees by providing them with beneficial ownership of the company, aligning their interests with the long-term success of the company and ensuring an exciting future for the business. Well-known examples of EOTs include Richer Sounds and Aardman Productions (producers of Wallace and Gromit). By embracing this employee-centric approach, Ben is keen to build on GCMI’s culture of collaboration, innovation, shared responsibility and shared rewards.
Our Restructuring and Advisory Division acted as the trusted financial advisor throughout the process. The team provided lead financial advice, company valuation, tax structuring, debt advisory, and leveraged its extensive experience in delivering M&A transactions to navigate complex issues to deliver a successful transaction.
Commenting on the successful sale, Adrian Howells, Managing Director at our Restructuring and Advisory Division said: “We are delighted to have delivered this transaction for Ben and his team. Employee ownership is gaining recognition as a powerful model for sustainable growth, as well as delivering a tax-efficient solution for exiting shareholders.
We commend GCMI’s forward-thinking approach in embracing this strategy. We firmly believe that shared ownership will only enhance employee engagement and motivation, supporting GCMI’s continued success in the years to come.”
Ben Lee, founder of GCMI, added: “This moment marks a significant milestone in our journey, and I want to express my heartfelt gratitude to our incredible team and customers who have supported us on this journey. I am pleased to continue working alongside the team to deliver GCMI’s strategy.
I would like to extend my appreciation to the team, who provided exceptional deal support and invaluable guidance in delivering the transition to an employee-owned model.”
The EOT transaction was delivered in partnership with sell-side lawyer Rebecca Burford, Partner, Charles Russell Speechlys, and Jeremy Hyde, Director, Howes Percival, who acted as a lawyer on behalf of the Trust. The collaborative partnership ensured that compliance with regulations was achieved, in order to secure a tax-efficient deal for the vendor.
