MBO of Dams Furniture Ltd

Sterling Corporate Finance LLP has acted as lead advisor to the management team of Merseyside-based Dams Furniture Limited in the acquisition, from administration, of the trade and assets of Dams International Limited. This has safeguarded the future of the business and 72 employees.

Dams International Limited was a £45m annual turnover office furniture business that suffered a downturn in sales due to the recession. Sterling Corporate Finance assisted management in evaluating the restructuring options for the business. It quickly became apparent that the business could not survive without going through an administration. Sterling Corporate Finance introduced KPMG as Administrators and subsequently helped management to structure and negotiate a deal to buy back the trade and assets of the business from the Administrators.

This is Sterling Corporate Finance’s first North West based distressed business acquisition since it opened its Manchester office in January 2009.

Chris Scott, who runs Dams Furniture with his sister Melissa Moore, comments: “Sterling Corporate Finance used their wealth of experience in advising on distressed acquisitions to structure and negotiate a deal with the Administrators on our behalf. They moved quickly and were with us throughout the process. Without them we would not have been in the position to complete the acquisition so promptly thereby saving 72 jobs”.

Graham Camm, Partner at Sterling Corporate Finance, commented: “We have again demonstrated our capability to respond quickly to a distressed business situation and to deliver a deal which saves jobs. It is important that other advisers we introduce to the transaction, quickly understand the issues and work with us to complete the deal expeditiously. In this case they did”.

Andrew Rose, Partner in charge of Sterling Corporate Finance’s Manchester office commented on the deal: “Within a short period of time Sterling Corporate Finance has ably and clearly demonstrated its abilities in the North West distressed corporate market, and to be a referrer of deal opportunities to funders and other professional advisers within the North West”.