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Turning a Competitor’s Failure into 50% Revenue Growth: A Distressed Deal Case Study Distressed Acquisition We Advised On We don’t usually do these but thought I’d share the case study. We don’t normally touch them because they are messy, time compressed, legally constrained, light on diligence, heavy on execution risk, and emotionally draining for everyone involved. Most buyers underestimate the cash required, overestimate how quickly synergies arrive, and forget that in an insolvency process you are buying problems, not just assets. That said, we recently advised on a distressed situation where the strategic logic was unusually compelling — and where the downside was well understood and actively managed. This article outlines why the deal made sense, and then walks through a live deal analysis, covering the real world considerations buyers need to think about when acquiring a business out of administration. The strategic backdrop A year ago, we helped a JV partner acquire a profitable construction business: • £11m turnover • £1.1m EBITDA • Well-run, scalable, and operationally disciplined Recently, a direct competitor — operating in the same region, with overlapping customers, assets, and workforce — moved toward administration. From the outside, the distressed business looked unattractive: • Loss making • Overstaffed head office • Factored receivables • Asset heavy • Operationally fragmented across multiple sites But from the perspective of an experienced operator already in the sector, it represented something else: An opportunity to add almost 50% to turnover, improve margins through scale and consolidation, and acquire hard assets at a fraction of replacement value. This wasn’t a financial engineering play. It was a strategic bolt on rescue, driven by operational synergies. The core investment thesis The buyer’s logic was straightforward: • Revenue upside • Retain core customers • Cross sell into an existing client base • Renew live contracts • Margin improvement

Hello everyone, I would appreciate your insights on a specific point in my current negotiations. I am in the process of acquiring a distribution business in the mountain sports sector, which has predictably high seasonality. The planned handover date is in March, which marks the beginning of the off-season. My key concern is determining the appropriate amount of cash (or net working capital) that should remain in the business at closing to ensure smooth operations through the low season until revenues pick up again. I want to do something simple, so my initial thought was to simply use the historical monthly bank balance as a proxy to identify the annual low point in the cash cycle. Or should I only consider the working capital requirement, eventually just calculated on the off season? It might trigger a price adjustment and I was trying to avoid that, but maybe there s no way around.... Has anyone dealt with a similar situation in acquiring a seasonal business? What methodologies or benchmarks did you find effective in defining the right "cash on hand" requirement? Thank you in advance for your input. Best regards,Philippe

Here are some stats from a JV partner we are working with - they have sent 1800 letters since October (not doing any in December due to Festive Period) to UK Based Baby Boomer businesses. This is complemented with an email (were we can get an email address) and if they are on Linkedin a Direct Message and connection request: SUMMARY Calls done, Pending Financial information to make offer 6 Pending Us Analysing deal to come up with an offer 2 First Call Stage 9 Second Call Stage 5 In Negotiations (probably 2 here that will get agreed) 6 Offer Made, Rejected but Revisit in 6-12 months 21 Reviewed Deal and Not Viable 18 Not Interested in Selling (but responded anyway) 16 First Call Done and now Not Responding 15 Deal Completed 1 Total Leads 99 Current Active Leads 29

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