Falcon Green / Private Business Investors
Cavendish Corporate Finance, the UK’s leading sell-side mid-market M&A firm, has advised Falcon Green, the UK’s top provider of temporary staffing solutions to the construction and engineering sectors, on the sale of a minority stake to two private business investors.
The investment will help Falcon Green accelerate its growth and take advantage of the Government’s latest drive in public housing construction and infrastructure projects.
Falcon Green, founded in 2012, was recently recognised by the Financial Times as the fastest growing recruiter in Europe. The firm sources temporary construction staff for large scale projects, including the London Olympic Village and The Shard. Falcon Green has also developed long-term relationships with over 100 well-known property companies such as Galliard Homes, Berkley Group, Willmott Dixon, McLaren and Bowmer&Kirland.
The company’s projects are spread across a variety of disciplines, including construction, development of luxury residential, commercial fit out and engineering.
Falcon Green had a strong year in 2019, delivering revenue of £37m with strong forecast growth planned. Currently 99% of revenues relate to temporary placements providing a robust recurring revenue stream.
Management have created a platform for future growth, with a significant number of opportunities available to further enhance and build the brand. These include, organic growth amongst its existing client base, opportunities to cross sell additional services to clients and strong growth within the white collar temporary and permanent divisions. The business plans to expand geographically to support existing client growth.
Falcon Green is renowned for the thoroughness and professionalism of its approach. Each candidate on its extensive database is interviewed and required to fill out necessary paperwork such as a medical and competence questionnaire along with details of prior employment. This rigorous approach has contributed to the firm having a 96% completion rate across all vacancies over the last three years.
Falcon Green is also a registered member or certificate holder for a number of certified trade and professional bodies, including SMAS and Constructionline, as part of the company’s commitment to being fully compliant and up to date with changes in the industry.
Falcon Green is uniquely positioned to benefit from increasing output levels in the construction sector. Construction in the UK is expected to enjoy robust growth going forward, primarily driven by expansion in new infrastructure activity and private house building. The sector’s renewed growth is expected to drive an annual recruitment requirement of 35,740 additional personnel per year between 2017 and 2021, in addition to the 2.6 million workers in the construction workforce today.
The Cavendish team was led by Partner, John Farrugia.
“We are delighted to have advised Falcon Green on securing two new shareholders for the business. Through this investment it will help the firm capitalise on the more supportive property and construction sector environment and take full advantage of new opportunities to accelerate the company’s growth. It is a very exciting time for the business and the firm plays a key role in ensuring that some of the UK’s major construction and infrastructure projects go ahead and are completed for the benefit not only of the property sector but also for the economy as a whole.”
“We are delighted with the support received from the finnCap Cavendish team throughout this process. Mike and the team ensured that we prepared meticulously, identified the right pool of potential investors and worked closely with us, the management team and our legal advisers to deliver a great outcome for the Shareholders. We wish the Intelling team and RDCP all the best in their next phase of growth.”
“This transaction is a hugely important step in the company’s development, strongly positioning the business for its next phase of growth, allowing us to meet the growing need for secondary school students to learn in an independent, fluid and remote manner.”
“Cortland shares our core values and our customers focus, and their additional resources will help us accelerate our growth in the UK market.”
“Thank you to John and your fantastic team at FinnCap Cavendish for your unwavering support, dedication, work ethic and belief in Xexec’s mission. John, Mike and Sam were instrumental in bringing the deal to a successful completion and provided invaluable guidance throughout the process.
We look forward to our new partnership with the Castik and Abry teams who are the ideal partners as we continue to expand our business and pursue the next phase of our strategy.”
‘The finnCapCavendish team were great to work with, they took time to listen, properly understand our objectives and tailored the process to get a fantastic result for us. They really understood the value drivers in the ICT sector and had access to all the key buyers for our business, they were able to efficiently manage the sale process maintaining the great relationship we’d built we Adept as our preferred buyer.’
“Thank you to Jon, Steph and Chirag for their tireless efforts in recent months. Jon offered invaluable leadership and strategic advice, while Chirag and Steph provided diligent and supportive guidance throughout. They also behaved throughout as one would expect friends and confidants to act, which is very helpful in a confidential situation. We were delighted with the result and very, very pleased to have had the three of them as our team.”
“Cavendish has a great brand and great people, and from the moment the appointment was made, we knew we were in safe hands. The Cavendish team of Andrew, Steve and Paris delivered the right advice at all times. The strength of their international reach brought parties to the table including ZEDRA who we would never have found ourselves and who saw the potential in our business and our team. Cavendish controlled the process and the negotiations throughout. They also understood how we felt as founders to be selling a business we had built over 12 years. Many thanks once again to the Cavendish team – I would highly recommend them.”
“This deal represents a fantastic opportunity for our investors to support an established and well managed business with an excellent reputation in the facilities management sector. We are delighted with the debt financing package arranged by finnCap, which was a critical element to the completion of the transaction. We were extremely pleased with how the process was managed by the finnCap Debt Advisory Team, which provided us with optionality to select the most appropriate banking partner for CMS.”
I would thoroughly recommend Andrew and Rebecca and the Cavendish team to anyone looking to maximise the proceeds from a disposal or asset sale. The Cavendish team are both consummate professionals, focused on delivery and pragmatic and flexible in their approach to helping their clients achieve their objectives. I would not hesitate to recommend them and would hope to work with them on future projects. They provide great value.
“It was a great pleasure to work with the Cavendish team once again. Having successfully worked together on the sale of our Payroll business in 2018, Cavendish were our natural choice of advisors. The team demonstrated a deep understanding of the sector and provided sound and trusted advice throughout the process.
We are confident the business will continue to flourish under IRIS Software Group’s ownership, further developing and delivering our market-leading software to new markets, and we look forward to working together during this next chapter.”
Recent Deals for Business Services Sector
KMP Holdings Ltd
Invicta Global Holdings plc
iomart Group plc
Debt Advisory | plc
Intelling Group Limited
GCSEPod (Soundbite Learning)
FAI Automotive plc
Sentenial Group & Nuapay
Neighborly & KKR
Debt Advisory | Private Equity
K3 Capital Group plc
Debt Advisory | plc