THE COMPANY

Established in 2004 and based in Tewkesbury, Gloucestershire, ABEC provides Building and Energy Management Systems (BEMS); Electrical Power Monitoring Systems (EPMS); and industrial grade SCADA (Supervisory Control and Data Acquisition) and PLC (Programmable Logic Controller) solutions to some of the largest data centre developers and contractors across the globe, and directly to some of the world's leading hyperscalers.

The company, which employs 150 people in 11 countries, also has a substantial portfolio of BMS (Building Management System) maintenance clients comprising a range of commercial buildings and major data centres (a BMS can manage somewhere between 60% and 80% of all power consumption in any given building, affording companies the opportunity to save power and reduce energy consumption). The BMS offering has grown significantly in recent years as the systems are increasingly important in helping companies meet their ESG (Environmental, Social and Governance) targets.

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CHALLENGE

By the summer of 2024, ABEC had been growing rapidly for over a decade and was firmly on course to achieve a turnover of over £43m for the 2024/25 financial year. The three major shareholders - Founder & CEO Matt Morrall, Business Development Director Paul Morrall and Chief Operating Officer Matt Litten – discussed the future and realised they had differing ambitions.

This was a key challenge. Paul wanted to realise the value he’d built, cash out and retire, while both Matts were keen to access some of their capital while remaining with the business to help it with its next stage of growth.

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OUTCOME

Having previously worked with ABEC on a successful funding deal, Shaw & Co was engaged by the shareholders to make a thorough appraisal of the various options.

It soon became evident that a sale to private equity would be the optimum route both for the business and for the shareholders’ varying ambitions. We then ran a highly competitive process that introduced the shareholders to various interest parties before a buyer was found in the form of private equity firm Magnesium Capital, one of Europe’s leading energy transition investors, which was also  supported by credit fund DunPort Capital Management.

Magnesium advises on investments in fast-growing technology and tech-led businesses that are enabling the shift to a decentralised, decarbonised and digitised energy system. ABEC's position as a leading BEMS, EPMS and BMS solutions provider fitted perfectly with its investment thesis.

Magnesium took majority control of ABEC, bringing in not only expertise in building businesses and assistance to the management team, but also additional capital for future acquisitions. This was soon opening up new opportunities for ABEC as well as wider equity ownership for senior management.

The deal saw Matt Morrall and Matt Litten receive a substantial amount of cash, ensuring they were financially secure and could focus on driving the business forward without financial worries. Paul, meanwhile, became a silent shareholder, allowing him to retire while retaining a small stake in the company.

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TESTIMONIAL

Matthew Morrall, Chief Executive Officer & Founder, ABEC, said: “I’d advise any SME owner-manager looking to sell their business to appoint a qualified corporate finance advisor – do not try to do it yourself. Shaw & Co were worth every penny in terms of the advice they provided and their diligent handling of the whole complex process. They were constantly available and were always going the extra mile to help us which really took the stress out of what was, not only a life-changing deal for the shareholders, but an extremely important one for the company itself.”