Linder Myers/RFC – A merger of our times

A merger of two long standing Manchester firms. The process leading to the acquisition of RFC began in Summer 2010.
Linder Myers had a strategy to grow their business in Manchester and in a set of other locations. They knew what markets they were focused on. They wanted to move forward more quickly than organic growth would allow.
The first stage was to grow in Manchester to allow them to create a city based hub with sufficient size to enable them to provide the desired range of specialist services.
We carried out a research exercise to identify firms who could potentially fit the bill. Although we are based in Manchester we could not assume that we knew all the relevant firms so we set out assuming no knowledge.
We spoke to a range of firms confidentially to ascertain their thoughts about getting together with another firm.
We then facilitated discussions with Linder Myers where appropriate and managed the project.
The acquisition of RFC came directly from this process but not without challenges.
RFC faced financial challenges arising from past events. The ongoing business was profitable, they had the disciplines which matched what Linder Myers were looking for and good people.
A true win/win. This would be obvious to everyone.
The bankers would clearly see that the merger of the businesses presented a great opportunity for both, securing the future of the Partners and staff of RFC and moving the Linder Myers business forward. A no-brainer. Hmm!

What are the learning points?

• Have your strategy in place before embarking on an acquisition process. You can use the strategy as your map.
• There are good opportunities out there for acquisition or merger but you need help to find them.
• The merger would not have happened without proactive project management from us. Getting an outsider to make an introduction and walk away is not a lot of help.
• If there is going to be a constraint it could be around finance and the willingness of banks to support a firm through the process.
• There are ways around financial constraints. Pre packs and other forms of financial restructuring can be done and do work.
• This process brings out the best and the worst in the participants. In this case we saw mainly the best.

The high point for me was standing next to the Managing Partner of the merged firm and being introduced to the Partners as he told them “we could not have done this without Jepson Holt and we would not do it again without Jepson Holt”. That was a good day at the office.

Phil Jepson