Case Studies

Private Sector - Construction

Successful acquisition of house building company

Establishing a change team with a strict timetable ensured the success of the due diligence and bid processes and rapid integration of the newly acquired business.

Prowting Homes was a family-owned UK house-building company with turnover of £300m. Following a due diligence and bid process, a final bid from Westbury was accepted. The acquired company was integrated with two new regional offices established in Dartford and Bridgwater.

This acquisition in 2002 propelled Westbury plc into the top six house-building companies in the UK and into the FTSE250.

The due diligence and bid process involved the coordination of internal and external resources, including lawyers, corporate financiers, the plc Board of Directors and other internal Directors, to ensure the strict timetable for submission of the acquisition bid was achieved. A summary report of the key findings was produced and issued to the plc Board to request further information from the acquisition target.

The acquisition target company had a number of locations throughout the UK and our responsibility covered all aspects of the acquisition and the coordination and attendance of internal and external change team meetings.

The change team worked extremely closely and there was frequent reporting through weekly formal meetings and other informal communications.

When the bid was accepted the integration of the newly acquired business was planned in detail. This involved the introduction of standard processes and systems into the two retained regional businesses and the decommissioning of systems in three offices that were closed.

The acquisition price was £141m. The reorganisation costs were £5m and the cost of new systems £1m.