Accidents of history - pet food makers and claims firms kickstart 2025 with deals
An uncertain start marked by optimism amongst Rainmakers
Hello Rainmakers,
This is the first Friday weekly wrap up from around the regional M&A market.
Just a reminder, that we send this one out to everyone who’s registered an interested about our developing Rainmakers platform. One Tuesday and Wednesday we send all paying subscribers a long read.
As well as those two unique pieces a week you get full access to our back catalogue of investigations, scoops, and insights, including updates from columnist The Secret Investor and interviews with entrepreneurs, and the leaders from VC and PE investors like Mercia and LDC. To receive new posts and support our work, consider becoming a free or paid subscriber, or sign up for a free trial…
One of those quirks of industrial history means that Yorkshire is home to some significant success stories in the growing UK pet food market, which was worth an estimated £4.1bn in 2024.
Among them is Wetherby-based Naturaw Pet Food, which has demonstrated an appetite for expansion by securing a six-figure growth funding package from NPIF II – Mercia Debt Finance, which is managed by Mercia Debt as part of The Northern Powerhouse Investment Fund II.
Over the last 18 months the business has racked up a string of achievements, almost doubling the size of its team and winning the King’s Award for Enterprise for excellence in sustainable development. And it has also just doubled its floorspace by taking on a second 15,000 sq ft unit at Thorp Arch Estate.
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Another quirk is personal injury and clinical negligence law firms in the North West.
This week saw one, Fletchers, take over another, Scott Rees & Co Solicitors. Significantly Fletchers is backed by private equity investor Sun European Partners.
The deal will see 97 fee earners and support staff from the firm’s personal injury and clinical negligence teams transfer to Fletchers once the deal completes at the end of February 2025.
Based in Newton-le-Willows, Scott Rees was founded in 1992 and specialises in employers’ liability, public liability, fatal accident claims and clinical negligence.
The amount paid hasn’t been disclosed, but Scott Rees had income of around £22m in 2024.
The acquisition is the second in a year for Fletchers, following the deal to buy Serious Injury Law in February 2024. CEO Peter Haden made it clear that Fletchers plans to continue its buy and build strategy, having agreed acquisition financing with Pemberton Asset Management in June, as well as the continued backing of owner Sun European Partners, which creates further headroom for M&A.
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This week on Rainmakers we included a selection of views about the economy and the likely effect on the regional M&A market. It wasn’t a scientific survey of sentiment, but it did provide a snapshot of opinion when we asked a cross section of leaders in your field to say what keeps them optimistic about 2025.
Here’s what Grant Thornton’s team had to say.
Peter Terry: “As reflected in many of our deals, demand from private equity (PE) and acquisitive corporates for high quality businesses in the SaaS, healthcare, FM (facilities management), energy transition and business services sectors remained robust during the year. Confidence increased as political uncertainty eased, particularly post-Budget, and inflation and interest rates began to soften.
“The North’s business base is broad and diverse with many leading universities, a skilled talent pool, and long-established industries, which have proved resilient over the decades.
“We are confident in the region and in our ability to transact complex buy side and sell side transactions, supporting PE firms as well as ambitious mid-market firms to achieve their strategic goals.”
Jim Whittaker: ”The outlook is more positive than it was this time 12 months ago, and we are seeing opportunities across a broadening range of sectors including those you would expect such as health-tech and software, but there are also businesses in certain niche consumer-facing sectors, such as travel seeing renewed interest.”
Matt Bryden-Smith: “Following our investment in the team during 2024, we believe we are very well placed to continue to perform well in the year ahead and out-perform the market.”
There’s more here…
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Painting the town and passing the brush: Stourbridge-based contractor GI Sykes completes a seven-figure management buyout.
After three generations at the helm, the Sykes family is stepping back - sort of.
Richard and Jason Sykes, grandsons of the 1940s founder, are passing the torch (but keeping comfy consultant roles) to a new leadership team backed by £720,000 of funding.
From post-war paint jobs to revamping McDonald’s and Merry Hill, the company’s growth is undeniable.
With big plans for growth, new apprenticeships and more retail makeovers, GI Sykes proves it’s as good at building businesses as it is at sprucing up walls.
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Entrepreneur Marc Braterman has put on hold his ambitious plans to build a boutique corporate finance business after the surprise resignation of James Darlington from Vertex before Christmas.
Braterman told us that everything he heard last year gave him the confidence there was the space for a business like Vertex, but it depended hugely on the person leading it.
Braterman will now focus on recruiting a new leader for the business, and has redeployed the remaining team at Vertex.
Darlington said on LinkedIn: “2024 was quite the year and after careful consideration I have taken the decision to step down from my position as Managing Director at Vertex.
“A huge thank you to my talented and hardworking colleagues that have made this (albeit short) journey thoroughly enjoyable. It’s allowed us to successfully support some incredible management teams in delivering their exit goals.”
That decision has given Braterman the task of recruiting a new leader for the business, in addition to running his foodtech business OSY.
Of the remaining team at Vertex Josh Malyan has joined Bamburgh Capital and another team member has joined OSY.
“We want to find the right person to run Vertex, so we’ve temporarily put Vertex on hold until we find that person.
“We’re confident we can deliver a corporate finance advisory business that offers a level of care and service that entrepreneurial businesses need.”
Three months ago the business advised on the sale of Octopus Ventures-backed Countrywide Healthcare to PHS Group.
When Darlington joined Vertex in June 2024 he told our Rainmakers platform that he was prepared to give up a much-coveted and well paid job working for venture capital investor Maven to join Vertex.
He said at the time that their own model was to sell businesses in the £1m-£10m range, for which they could reasonably expect to earn a fee between £80k-£100k for a deal.
“The conversations I’m having are that the rest of the market is crying out for a professional approach at this end of the market.”
His challenge, he said, “is to get out the message in an efficient and effective manner and then provide the right level of service at the right point in the process and work with pragmatic and commercial lawyers who can negotiate over the things that really matter.”
Braterman founded Vertex with Birmingham-based Yasin Shariff, the CEO of consultancy TAMC and cleaning supplies business DuraClean and London-based Martin Birch, chief executive of WGC, an outsourced cleaning and facilities management business serving hotels like Radisson, Accor & Claridge’s, who had done business with Shariff.
James Darlington did not respond to a request to comment.
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This time last year corporate finance team at accountancy firm Bishop Fleming had its eyes on a better 2024.
Over the course of the year its corporate finance team advised on deals like the sale of construction consultancy firm Kendall Kingscott to the ever hungry RSK Group.
Their partners Joe Coghlan, Lindy Adams and David Lock, also acted as lead advisers to the shareholders of City Financial Planning in its sale to Advanta Solutions, their second acquisition in 2024 and the ninth in total, having secured a significant investment from Beech Tree Private Equity.
And on the buy side they advised MTM Engineering Group, backed by Waterland Private Equity, on its acquisition of TA Ronan.
It’s this kind of ear-to-the-ground opportunity that has given the firm its confidence to move from its South West heartlands, gradually expanding through the West Midlands, to make a bold and brave move into a new office in Birmingham city centre.
To spearhead this expansion, the firm has appointed Mark Taylor, a seasoned leader who previously oversaw RSM’s Central region for eight years, managing its seven offices and more than 1,000 staff before stepping down in March.
There’s more here…
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YFM Equity Partners has closed its British Smaller Companies Venture Capital Trusts (VCTs) fundraising, raising £75m in just 11 weeks, which will help North West firms.
The initial target of £50m was surpassed within the first month, prompting an over-allotment to £75m to meet overwhelming investor demand.
It said this milestone highlights the appetite for growth equity from investors to match the demand from North West businesses.
The successful close of this fundraising round brings the British Smaller Companies VCTs’ total growth funds to £500m, with £150m currently available for new investments.
YFM said it remains dedicated to fostering innovation and supporting businesses across the North West, helping to shape a thriving regional economy.
It said the North West has all the ingredients for entrepreneurial success – ambitious leaders, a thriving business ecosystem, and a culture of resilience. However, to unlock its full potential, overcoming growth barriers requires raising awareness among entrepreneurs about the transformative benefits of private equity.
VCT investment has already played a pivotal role in empowering ambitious businesses in the region, providing not just financial support, but also strategic guidance to help them scale effectively.
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RAINMAKERS CONFERENCE IS BACK IN 2025
Our speakers have been revealed for the 2025 Rainmakers conference. They include those featured below, and many, many more.
twisted loop are excited to come on board as our headline partner. They join partners BGF, Dow Schofield Watts, KPMG, NorthEdge, Palatine, Shawbrook, Squire Patton Boggs & TDC.
Twisted Loop said: “This event is a testament to the strength and ambition of the North West’s business and investment community, bringing together an incredible range of talent, insight, and expertise.
A powerful line up of speakers including high-calibre private equity backed entrepreneurs such as Ruth Percival, Helen Oldham and Thomas Ryder, the founder of Applied Nutrition and the chief executive of the biggest UK stock market float of 2024.
Hot topics on the packed agenda include how to create success in tech, the art of building value in a growing business, and making the case for private equity and corporate finance professionals on the political stage.
Newsworthy speakers will also include Shru Morris, anointed successor DSW, and Dave Richards, founder of IntelliAM, who has a tale to tell about his experiences with tech business WANdisco, and founder of Palatine private equity Gary Tipper.
Also appearing to set the political backdrop to the eventful year just gone will be Karim Palant, head of external affairs at the BVCA, and Greater Manchester Mayor Andy Burnham.
So save the date for Rainmakers 2025 – Wednesday 26 March, 2025 – and secure your place today at The Point, Emirates Old Trafford, Manchester.
It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.
The first Rainmakers Conference this March sold out, with more than 400 people attending to hear the insights and perspectives from entrepreneurs, investors and advisors, and to network with senior figures from across the corporate finance community.
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