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JSA Consulting Engineers sold to Patrick Parsons 

JSA Consulting Engineers (JSA) are a £3m turnover structural and civil consulting engineers specialising in major residential projects, often spanning 10-15 years. They met Avondale at their annual Buying and Selling conference at the Institute of Directors. Mark Hughes, director and sole shareholder of JSA, was seeking retirement and met Avondale to discuss his objectives and the business sale project.

Avondale’s intensive research generated significant interest. A shortlist of 20 parties were drawn up for initial discussions. Meetings were then held with three of the most suitable buyers all of whom submitted an offer.

JSA were particularly reliant on one major house builder who contributed 70% of turnover. The close client relationship is held by Mark Hughes and his second in command. JSA and Avondale were open about this from initial discussions and, to negate the risk to a potential purchaser, Mark committed to remain with the business for a significant amount of time post-sale.

Patrick Parsons' offer was accepted. Heads of Terms were signed off and the deal completed a few months later.  Not only was the headline price in line with expectation but also the contingent element of the deal was based on turnover rather than profit, which can be complex to calculate, and was linked to the entire group’s performance rather than JSA’s alone. This approach is highly unusual and innovative. 

To talk to Avondale about your objectives, call 01737 234892 or email iod@avondale.co.uk

 

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