Corporate Finance Case Study

Sale of CMG Technologies Limited

Conway Marsh Garrett Technologies Limited (trading as CMG Technologies Ltd) a subsidiary of Conway Marsh Garrett (Holdings) Limited was founded over twenty years ago and is based in Rendlesham, Suffolk.

They specialise in Metal Injection Moulding (MIM), providing injection moulded components to the medical, aerospace, automotive and industrial sectors for diverse applications. This is a niche market and they are the only manufacturing company in the UK that can do this.

“Throughout the process the Scrutton Bland team were always available and it was clear that they were doing all they could to make the deal happen. We can’t recommend the Corporate Finance team highly enough. We could not have completed the deal without them and their ability to take the pressure away from us. Their calming voice is probably the thing we have valued the most.”

Dr Phil Marsh,
Technical and Production Director, CMG Technologies Ltd

Following a Management Buy Out (MBO) in 2013, by Rachel Garrett, Managing Director and Dr Phil Marsh, Technical and Production Director the business saw rapid growth and recognition in the market and in order to continue to grow at pace, sought funding opportunities.

CMG have been a client of Scrutton Bland for over 10 years and as well as advising them on the management buyout from their previous owners in 2013, we have supported the team with financial management projects such as the introduction of cloud-based digital accounting, bookkeeping services and moving from Sage to Xero.

Throughout the years, CMG Technologies faced numerous challenges that tested their resilience and determination. Competition was fierce in the industry, and they needed to consistently innovate and adapt to stay ahead. CMG Technologies backed the 4 Day Week Campaign; a pilot scheme rolled out across the UK and saw its turnover increase by 25% with profit going up by 200% after it introduced the four-day week.

This innovation and new ways of working saw CMG Technologies win multiple awards and their success attracted the attention of Indo-MIM Group, a leading global manufacturer of precision-engineered products. Recognising the synergies between the two businesses, and allowing the business to propel their market share within the UK, Indo-MIM expressed interest in acquiring CMG Technologies, which marked a significant milestone in CMG’s journey.

Our team brought together a wealth of experience, professionalism, and industry knowledge to facilitate a successful transaction. Our offering included:

  • Due Diligence: We assisted the Sellers throughout the Due Diligence phase of the transaction, preparing requested information and engaging with third parties to obtain specialist information.
  • Transaction Advisory: We provided strategic advice to Conway Marsh Garrett (Holdings) Limited throughout the transaction, helping them understand the various implications and options available at each stage. This included advising our client when the Buyer needed to change the deal structure midway through the transaction, a change that we were able to accommodate.
  • Agility: As this was an international deal, it wasn’t structured in the same way as a typical UK transaction. This saw the team working to meet the needs of the Buyer by looking at the treatment of working capital and understanding the definitions of key aspects slightly differently, whilst focusing on the needs of our client to ensure that the expected Equity Value was met.
  • Ongoing Support: Now that the deal is complete, Mark continues to work with the CMG team by engaging with Leonard Curtis Business Solutions Group, a fellow Nexia member, to liquidate the Holding company and to enable the initial distribution of funds to the shareholders.

Our collaboration with CMG Technologies extended beyond a mere advisory role; we became trusted partners in their journey towards growth and success. The key elements of our support included:

  • Expertise: Our team’s expertise in corporate finance, valuation and due diligence proved invaluable in guiding Conway Marsh Garrett (Holdings) Limited through the intricate transaction process.
  • Collaboration: We fostered a close working relationship with the CMG team, collaborating seamlessly to overcome significant transaction challenges and achieve shared objectives.
  • Diligence: Every step of the way, we exercised thoroughness and diligence to ensure that the best interests of Conway Marsh Garrett (Holdings) Limited were safeguarded.
  • Client-Centric Approach: At Scrutton Bland, our focus has always been on delivering client-centric solutions, tailor-made to meet the unique needs of each business we serve. We understand that no client or transaction is the same – these are life-changing transactions – so a tick-box approach is not appropriate.

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