With three decades of experience behind him in the heating industry, entrepreneur Dave Smith realised there must be smarter and simpler solutions to external insulation than were available at the time.
Primary Pro and Condensate Pro were created to provide a total solution to challenges faced when insulating external heat pumps and condensate pipework.
With the explosion in the green, clean energy market, effective insulation solutions are in demand now more than ever and Smartovations Ltd, has become the market leader in its sector.
Looking at stepping back , founder Dave Smith wanted to ensure the company continued with his management team at the helm, to preserve the current culture and work ethos.
Dave contacted Yorkshire boutique practice, Castle Square Corporate Finance, to investigate solutions which would allow him to release his equity, whilst protecting his employees.
Advised by Joe Potts and Managing Partner Kevan Shaw, it was decided that the business should transfer to an EOT (Employee Ownership Trust).
This will allow Nicola Bagshaw, the current Director of Operations and Finance, to move into the role of Managing Director, with Dave stepping into a consultancy role to smooth the transition.
Dave said “This has been one of the biggest decisions in my business life. When I first met with Kevan and Joe about selling my business I wanted to make sure my team were protected and looked after as they are the most important part of the business.
When they explained about an EOT and how it would work for me and my team, it made complete sense.
From the very first day, Joe has been there at every point. Not only keeping me updated and taking calls out of office hours, but he really made me feel that he was invested into the process and my business as much as I was.
I cannot recommend Joe and Castle Square highly enough.”
Joe added “I am so pleased to have advised on the successful sale of Smartovations to the employees. This is an innovative business serving a significant growth sector, a sector which is key in our transition to clean, green, renewable energy in this country, and I am overjoyed that the business will be able to continue to serve this market with fresh impetus from employee ownership.”
The multi-million-pound EOT has been funded by the HSBC with Rebecca Pearce leading their team.
Rebecca told us “We are delighted to support Smartovations with this EOT transaction. We look forward to seeing the management team take the business from strength to strength.”
Expert legal and tax advice was provided to the company by Lisa Wallis, Rebecca Rudd and Alex Angelides at Freeths LLP.
Callum McLaughlin and Patrick Abel, part of the Corporate Finance team at independent Chartered Accountants and Business Advisers Hart Shaw, provided financial due diligence on behalf of the bank.
Other Advisors:
Freeths – Lisa Wallis, Rebecca Rudd and Alex Angelides
Hart Shaw – Callum McLaughlin and Partick Abel
Shakespeare Martineau – Matt Ainsworth (HSBC)