News  >  January 2009

Accountants Play ‘Matchmaker’ for Client Business

Chartered accountants WBV have played a key role in bringing together two Swansea engineering businesses in a deal that has brought major benefits for both.

Rylan Lopez, a partner at WBV, introduced Michael Bennett, owner of welding specialists Dragon Engineering Services, to Robert Rees, owner of steel fabricators Clayton Steel Services, after working with both companies for a number of years. The meeting came after Michael mentioned to Rylan that while his business was thriving, he was finding running the company increasingly demanding at a time when he was hoping to take things a little easier.

Rylan spotted the synergies between Dragon Engineering and Clayton Steel Services and introduced Michael to Robert. Within months of that meeting, Robert had bought Dragon Engineering, retaining Michael’s expertise in the role of managing director.

Michael launched his business a decade ago after he was made redundant, working from a pick-up truck with a welding set on the back and turning to decorating and rag-and-boning when work was scarce. His dedication has seen the business grow to a 20-strong team, working for clients including Carillion, Sir Robert McAlpine, John Weaver Construction and Edmunds Webster, and he is proud that it has never lost a customer.

He dates the turning point for his company to six or seven years ago, when times were tough and his bank had referred him to WBV as a condition of financial support. Rylan subsequently helped him to claim a vital £28,000 tax rebate and his advice, plus the appointment of John Davies as Dragon’s in-house quantity surveyor, who tightened up on credit control to improve cash flow, made a significant difference.   Michael says: "We had the same customers and the same turnover as before, but we were making a profit."

Robert, whose company specialises in manufacturing waste and recycling containers, said: "We are always looking at business ventures but Dragon Engineering weren’t a firm I was aware of. Rylan certainly put the idea into my head. He could see the synergies and encouraged me to take a look and see what I thought – when I did, I could see an acquisition working really well and it made sense for both parties."

The timing of the deal, shortly before the abolition of taper relief on capital gains tax earlier this year, allowed Michael to benefit from the sale in the most tax-efficient way and Dragon Engineering Services is continuing to flourish under its new ownership.

Michael is delighted with the outcome and with Rylan’s role in the successful sale and his ongoing support, saying: "I feel more confident with him behind me. Robert says:  "There were some difficult negotiations to be made but at the end of the day Rylan made the deal happen."

Rylan says: "Helping a client to achieve a successful transaction is always pleasing. Being able to identify a deal that will benefit two clients equally, and then to help bring that deal about everyone’s satisfaction, is enormously rewarding. I wish both Michael and Robert every success for the future."

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