“We’d invested in Mercia in 2015 through the Foresight Nottingham Fund and the business had developed well under a strong management team. However, a critical point in the business lifecycle had been reached. We had to make a decision to either support the business with further investment, which we were prepared to do, or pass the business on to a new owner with greater resources to fully exploit the opportunities that were presenting themselves.
We decided to market test the appetite for a sale. We needed to move quickly and realised that we would need some support to make it happen. After a successful pitch to management, we appointed John to undertake an exit support role.
It worked out extremely well. John took the time to get to grips with the complexity of the power peaking market and built a great relationship with the management team. This provided the perfect platform from which to reach out to potential purchasers, which John did against very tight timeframes, and which delivered offers which were very attractive to both Foresight and the management team.
John’s commitment to the project and management of the process were key in delivering an exit result that we were delighted with”
Matt Smith – Partner Foresight Group
Mercia Power Response Limited is a market leading developer and manager of power peaking assets. Put simply, Mercia provides power to the grid when the sun doesn’t shine and the wind doesn’t blow thus complementing renewables to ensure consumers have a stable power supply. Operating from over 25 sites in the East Midlands and South Yorkshire, Mercia has become an important regional player in the power response market.
Mercia received an initial £2m investment through the Foresight Nottingham Fund to boost the growth and development of the business and to support the plans of power industry entrepreneurs Graham White and Andrew Leach.
Skye Corporate Finance was appointed to test the market for a potential sale. This involved working closely with the management team to produce concise and relevant information, contacting potential purchasers and securing initial offers against a very tight timetable. Skye Corporate Finance then led the negotiation and structuring of offers to preferred bidder stage with the eventual outcome being an exit that delivered a 3.8x return to Foresight.