T his was the situation for Essex-based engineering business Pickering who had grown steadily since their founding in the 1960s, when they were presented with the opportunity to acquire a long-standing supplier – Mumford Engineering Ltd, a company they had worked with for some considerable time, and who produced to a quality that Pickering were unable to obtain elsewhere. One of Mumford Engineering Ltd’s shareholders was nearing retirement, and without a clear succession plan, the security of a critical supply chain was uncertain. So, having explored a variety of options, and with the express wish of securing employment in the local community - alongside making sure their operations could continue ‘business as usual’ - the Pickering Group decided to complete the share acquisition of Mumford Engineering Ltd. This was to be the Group’s first ever share acquisition.
Our approach
The outcome
Pickering engaged us as lead advisers through the process. And our combination of professional expertise with a practical, hands-on style helped them by:
This meant that the acquisition achieved multiple objectives:
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Secured the supply chain : A critical supplier was brought under full ownership, reducing risk for the Pickering Group’s operations. Preserved jobs : All existing employees at Mumford were retained, safeguarding local jobs in an area with limited employment opportunities. Enabled future investment : Pickering were able to invest in equipment, processes, and people at Mumford Engineering that would continue over the coming years. Operational consolidation : Operations were able to be relocated to a modern facility closer to Pickering’s main site, improving efficiency and working conditions. Strategic milestone : This first acquisition marked the Pickering Group’s entry into acquisitive growth, opening the door for future opportunities.
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Breaking down complexities : We explained corporate finance, legal obligations, and accounting mechanics in plain English, making the process understandable for first- time acquirers. Focusing on relationships : Short-notice, face-to-face meetings were held in informal local venues, balancing professional negotiation with personal connection. This helped maintain trust and avoid friction. Negotiating ownership and continuity : The Pickering Group’s priority was full ownership of Mumford Engineering. So, through careful structuring, all selling shareholders were retained as employees, ensuring operational continuity during the transition. Resolving property challenges : A new lease was negotiated with landlords in a way that preserved operational stability at Mumford, avoiding disruption to staff and customers. Presenting clear options : We laid out the pros and cons of either a partial investment or a full acquisition, meaning the board could make an informed, confident decision.
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The challenge
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From the outset, the transaction was complex:
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Long-standing relationships : The Pickering Group and Mumford Engineering Ltd shared decades of history, which made emotions and personal relationships a factor in every discussion. First-time dealmakers : Neither company had previously completed an M&A transaction, creating potential for confusion over mechanics like completion cashflows or lease obligations. Property issues : Mumford Engineering operated from a leasehold property, with a lease renewal due within the timeline to complete the acquisition.
We’re here to help
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This was a deal that showcased how the right combination of professional advice, relationship management, and practical problem-solving is essential whether it’s your first acquisition or beyond. Our corporate finance team support manufacturing and engineering businesses of all sizes to confidently take the leap into acquisitive growth while protecting long-term business interests. For more information get in contact with one of the team by calling 0330 058 6559 or email hello@scruttonbland.co.uk
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By combining commercial insight, practical problem-solving, and relationship management, we were able to guide this first-time acquirer through a highly sensitive, multi-stakeholder transaction.
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“Having grown organically for decades, this was our first acquisition. Scrutton Bland helped us understand complex matters in simple terms and guided us through every step. Their support was invaluable.”
Keith Moore , Pickering Group Ltd Managing Director
MANUFACTURING AND ENGINEERING | SCRUTTON BLAND | 1 7
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