Fashion brands steel deals, and just how dodgy are business brokers?
For the Rainmakers curious, insights from around the country by our team of reporters
Hello Rainmakers,
This is your end of week wrap in what is supposed to be the quiet time of the year.
This is free to all who have signed up, however Rainmakers subscribers get two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, and River Capital, Foresight, Mercia, Puma and LDC.
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We’ll start with a big positive one first. The sale of a stake in cult female fashion brand Adanola, which values the Manchester-based business at £400m (US$530m) is a huge lift for the city and the UK fashion industry.
Its headquarters in the NOMA district in Manchester have been buzzing lately that a brand like this has grown as quickly as it has, and attracted the attention of an investor like STORY3 Capital Partners. It gives you some indication of where a bit of energy and market insight can get you.
Adanola is another business that has really captured the attention of women’s demand for quality fitness products, like leggings, which flew out of the door in 2020.
It’s also a business that’s been turbocharged by the smart decision of founder Hyrum Cook to hire Niran Chana as CEO to drive growth and lead overall strategy and execution. Previously, he served as Chief Commercial Officer at Gymshark where he played a key role in scaling that business.
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Nottingham’s E J Orr, trading as Orrsum, has stitched up a deal to join global supply chain giant Li & Fung - putting its best foot forward into 40 economies.
Founded by William and Victoria Orr, the business pulls its weight in the hosiery world, supplying over 50 million pairs of socks every year to more than 5,000 retail locations worldwide.
It’s also well-heeled in the underwear and loungewear markets, with long-standing ties to top retailers and brands.
Now, the acquisition will see Orrsum tucked under Li & Fung’s umbrella, giving it access to an extensive supply chain network, a move expected to keep the business on its toes in the global hosiery race.
Corporate partner Peter Allen at Browne Jacobson, who led the legal team, said: “The strategic acquisition by Li & Fung will provide Orrsum with access to one of the world’s most extensive supply chain networks, positioning the business for continued growth in the international hosiery and loungewear markets.”
With its new partnership sewn up, Orrsum looks set to sock it to the competition on a much bigger stage.
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Win-win situations tend to build the foundation for a great deal. That's certainly the case in the construction world this week, as German group Laumann agreed a deal to acquire Epwin Group for a whopping £167.3m.
The acquisition is good news for Solihull-based Epwin Group, manufacturers of energy efficient and low maintenance building products, as it's set to offer significant added returns to Epwin’s shareholders.
At the same time Laumann will benefit from Epwin's established customer base and infrastructure while expanding into markets where the group did not previously operate. It's a story of mutual benefit and synergy forming the building blocks for a successful partnership.
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A Sheffield-based bridge engineering specialist is crossing the gap to reach further success by securing £1.4m in debt funding. This money for EKSPAN is the largest loan to date from NPIF II - Mercia Debt Finance, which is managed by Mercia Debt as part of The Northern Powerhouse Investment Fund II (NPIF II). EKSPAN has big ambitions - it intends to grow its capabilities and increase its turnover by 50 per cent in the next three years.
The company - which operates as a principal contractor, subcontractor and supplier - has proved it can soar over gaping chasms to win appointments to major projects. Schemes it has worked on recently have included the glass walkway at London Bridge, the M25 Gade Valley Viaduct which is a key part of the capital's orbital network, and the A1139 Nene Bridge, a vital arterial route for Peterborough.
EKSPAN has been on the scene for more than 30 years, but for much of that time operated as part of larger corporates, most recently the USL Group. The firm returned to independent ownership in 2023 with a buy-out led by the current management team consisting of Max Angerer, Jon Spence, Michael Fenton and Jordan Gerrard.
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Rainmakers is keen to hear from business brokers who have evidence of ‘sharp practice’, or who dispute the claims of one business broker who is calling for the government to regulate the business sales, mergers and acquisitions sector which they say is ‘unregulated and unchecked’ and riddled with ‘sharp practices’.
Gareth Smythe, founder and chief executive of Hilton Smythe, believes that a lack of oversight has allowed poor service and sharp practices to persist. This is leaving many business owners vulnerable to poor advice, opaque pricing structures and a lack of accountability.
The sector, which tends to process the sales of small businesses, remains largely unregulated and puts unwitting business owners at risk.
In a letter to Business Secretary Jonathan Reynolds, seen by TheBusinessDesk.com, Smythe argues that this regulatory vacuum has led to a sector that is unregulated and unchecked – with wide disparities in service quality. Some operators are failing to provide accurate valuations, clear communication or appropriate buyer matching.
Smythe cites similar problems in other unregulated advisory sectors which have already prompted regulatory scrutiny. “Earlier this year, hospitality firms called on the Competition and Markets Authority to investigate energy brokers over aggressive fees and hidden commissions, citing a lack of accountability in the intermediary sector. This highlights the risk that arises when essential advisory services operate without a clear framework for conduct, qualifications or transparency.”
Smythe is also calling on trade associations and government policymakers to prioritise the development of a regulatory framework that would introduce minimum service expectations for firms involved in business sales. This could include fair and realistic valuation practices, transparent fee structures, proper due diligence and clearly defined responsibilities for advisers.
Smythe added that he believes formal regulation would protect clients, enhance trust and improve the long-term credibility of the sector.
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We ran a fascinating deep dive into to the strategy of a private equity buy and build this week. Ellie Hollinshead has been talking to the CEO of the newest face in the tech market, who is trying to meet a wider range of complex client technology issues.
“We saw an opportunity to create something greater than the sum of its parts,” says John Antunes, the CEO of TXP, who is getting used to the ways of working with private equity backer Aliter Capital on an ambitious buy-and-build strategy in the tech space.
The West Midlands based company emerged through private equity backing and a clear plan, after it was created when Aliter Capital acquired and merged two established regional firms: Concept, an IT resourcing specialist with 15 years of experience based in Dudley, and Jumar, a Microsoft-focused consultancy with over 20 years in Solihull.
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KPMG's mid-year private equity pulse, which looks at mid-market deals valued between £10m-£300m, found every UK region experienced a slowdown in deal activity, except the South West.
The region averaged just over a deal per week - which was a 27% increase on last year - and bolt-ons accounted for more than half of all deals.
John Levis, who heads KPMG's corporate finance team in the South West and South Wales area, said: "We know that the South West boasts a strong reputation for technology, media and telecommunications businesses, so many should be able to capitalise on the boom in this sector and achieve further investment."
Elsewhere "the mood remains cautiously optimistic", according to the firm's UK head of corporate finance Alex Hartley, despite 2025 not continuing the momentum that had started to build last year.
And Hartley sounded more cautious than optimistic as he looked ahead.
“We may start to see activity pick up over the rest of the year, as business owners contemplate potential tax changes in the Autumn budget and they have had time to assess any impact from global tariffs," he said.
The 2025 buzzwords of uncertainty, tariffs, volatility feature in the analysis, alongside a reminder that "getting deals over the line is taking longer".
We're also reminded that "there is a significant pool of dry powder in the PE market in the UK", but unless it's a super high quality asset there's a good chance that investment committees will choose to continue to keep their powder dry.
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We are hosting Rainmakers Lunches soon, an opportunity to network with leaders from the corporate finance sector.
These events will bring together the region’s Rainmaker community to discuss the deals market in 2025 and celebrate your successes over the last 12 months.
We will be joined by our Rainmaker of the Year in each city.
Joining us in Leeds on the 23rd of September will be Rainmaker of the Year – Paul Mann, partner in the corporate team and head of the private equity team in the UK at Squire Patton Boggs.
Also attending is the Changemaker of Year, Alexandra Fogel, partner and head of private north at EY, who scooped the award at our Rainmakers awards in June.
Chris Handy, who is Partner and Head of West Midlands for LDC, alongside him we will have Richard Swann from Inflexion, who won our Changemaker of the Year award. on the 2nd of October.
Also on the 2nd of October in Manchester we have Rainmaker of the Year – Michael Loudon, partner and head of the North West at Clearwater.
Alongside him will be our Changemaker of Year, Greg Holmes, from Palatine, who scooped the award at our Rainmakers awards in June.
Also providing insights will be Claire Alvarez of private equity firm Foresight, who won the finance leader category at the Leadership Awards 2024 and shortlisted for Rainmaker of the year.
Laura Wiggins, our Rising Star, will be on maternity leave and we send her our very best wishes.
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