Aran Group

Overview

Aran Group is a long-established energy efficiency specialist which was formed in 2004. Following several years of strong growth, the company reached a natural transition point, enabling it to scale its impact, enhance its client offering, and open new opportunities for its supply chain to access funded schemes, ultimately delivering greater support for vulnerable households.

Aran engaged KBS Corporate Finance to explore the market and after offers had been received, the decisive support throughout the transaction came from K3 Law, with additional tax guidance from K3 Tax Advisory. Their combined expertise, fee model and integrated approach provided the clarity, protection and guidance the directors needed during a complex sale.

Challenge

The management team had completed a previous sale of another group company three years earlier, using external accountants and local solicitors. That experience was overly complicated, expensive and high-risk. This time, they needed a streamlined, lower-risk legal process supported by experts who understood SME transactions.

Our previous sale was overly complicated and very expensive, and we were on the hook for the fees whether the deal completed or not. We didn’t want to go through that again.

Key challenges:

  • Two directors wished to retire and attain their investment
  • Concerns around potential Capital Gains Tax changes
  • IR35/off-payroll risks involving subcontractors and a director’s service company
  • Potential for significant escrow requirements
  • Desire to avoid being the intermediary between multiple advisory firms

Solution

Once bids had been received, Aran Group was introduced to K3 Law. The decision was driven by:

  • Integrated communication with K3 Tax and internal teams
  • In-depth knowledge of the buyer’s legal team
  • Ability to quickly identify, negotiate and mitigate risks
  • Competitive fees

K3 Law provided a level of reassurance that transformed the experience for the directors. Our ability to break down complex issues into clear, manageable steps meant the team always understood the implications of each decision and felt confident about the direction of the transaction.

Having everything under one roof made it so much easier. We weren’t stuck trying to coordinate accountants, lawyers and tax people. K3 just dealt with it.

Results

Aran Group is successfully integrating with its new parent company and while the first phase of that process introduced new systems and requirements, the business is now positioned to take advantage of significantly larger opportunities. Being part of a wider group offers access to greater resources, broader networks and enhanced operational support.

We still feel confident we made the right decision, both for the business and for ourselves.