Sector
Established
Location
P&D Specialised Services Ltd
P&D Specialist Services Ltd is a specialist electrical and civil engineering contractor based in Derbyshire. P&D offers technology-focused expertise to clients in the highways, rail, tunnel, and power distribution sectors. Focusing foremost on safety, P&D has delivered high standards of workmanship for more than thirty years.
The Journey
Established by two brothers, Pat and Dave Musgrave, P&D is a Derbyshire-based specialist electrical and civil engineering contractor. Beginning in the highways sector, P&D’s growth over more than 30 years has enabled them to diversify, now catering for a range of commercial, operational and contractual requirements across multiple sectors.
Having established a strong legacy for the company, Pat and Dave looked at the company’s next stage of development. They wanted to create a succession and exit strategy that would not only benefit the staff but ensure the brand’s longevity within the local community and beyond. So, in 2018 they undertook an Employee Ownership Trust (EOT) buy out.
Pat Musgrave, co-founder of P&D: “At P&D, legacy has always been important to us, and we wanted to keep it that way. An EOT was the only option that checked all our boxes because it not only gives our employees security, it also ensures that the legacy we have built can still be developed within the community. We are delighted to hand the company over to the people who are the most invested and critical to the success of the business – the employees.”
The Accountant
Mitchells Accountants & Business Advisers have worked with P&D since the Company’s inception.
Director, Pat Musgrave explained: “We use Mitchells to bolster our accounting function. Working together ensures we have strong financial and budgetary controls and produce timely, accurate management accounts. They have also supported us throughout the transition of becoming an Employee Ownership Trust and assisted us with raising growth finance over the years”
The Transaction
P&D was looking to raise £3.5m to repay the current facility and release additional funds to part repay the subordinated vendor loans relating to the EOT which was done in 2018.
The new £3.5m commercial loan was to be reprofiled over a new term and at a much cheaper interest rate.
The Lead Advisor
Andrew McDaid, partner at Mitchells Accountants & Business Advisers acted as lead advisor on the transaction. Commenting on the transaction Andrew said: “Through Mitchells Funding Advisory Service, we have a long history of helping businesses like P&D raise growth finance”.
Andrew went on to explain “Working alongside our panel of industry experts we have access to a myriad of specialist investors and funding options. Given P&D’s current requirements, Shawbrook Bank was approached as preferred funder”.
Director, Pat Musgrave commented “Andrew didn’t simply introduce us to Shawbrook Bank. He was there throughout the entire funding process. Always available; day and night to sort any issues and ultimately getting the transaction across the line.”
The Funder
Shawbrook’s close working relationship with Mitchells partner, Andrew McDaid initially got their interest but it was P&D’s market position, high visibility of contracted revenues, and their experienced and loyal team which meant it was a deal they were happy to do.
Relationship Director, Nick Salmons commented “the quality of the report, forecasts and other supporting documentation produced by Mitchells were second to none and the speed in which it was prepared was really impressive. Their ongoing assistance throughout the process was invaluable in getting this over the line”.
“Mitchells are highly professional and provide us with added value, thanks to their monthly management reports we are able to track our progress as a company.” – Pat Musgrave, Managing Director, P&D Specialised Services Ltd
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