The Mailing Room completes strategic acquisition of Mailing Systems Ltd.

BACKGROUND

Established in 1999, The Mailing Room (TMR) sources, installs and services postal franking machines to a diverse customer base of over 5,000 customers in both the private and public sectors. As part of its expansion strategy, following the appointment of Group Managing Director Ian Davidson, the company was looking to acquire a competitor with a similar and well-aligned business vision.

A target, Mailing Systems Ltd (MSL), was identified at a point where its owners were looking to sell their business and take early retirement.

BUSINESS NEEDS

For TMR, the purchase needed to help realise their strategic objective of doubling the size of the business within 5 years. Therefore, the ideal target was a business with a similar ethos and characteristics that would allow accelerated growth to achieve its goal.

For the owners of MSL, is was vital that the buyer of their business would have a comparable business philosophy as well as the comprehensive provision of post room equipment and supplies, in order to continue delivering the services with the same customer-focused approach. As is typical with the sale of a family owned business, they wanted to leave a legacy and it was important that TMR could provide this.

DTE SOLUTION

DTE took a pragmatic approach to meet the transactional needs of TMR. This included advice on assessing the feasibility of the MSL acquisition having spent time understanding TMR, assessment of value, managing the offer to the vendors and negotiation of the Heads of Terms. DTE worked closely with all parties to this stage, as it provided the platform and framework for the transaction, giving clarity and understanding to all.

DTE provided a ‘rounded’ business advisory service throughout the remainder of the transaction, including fundraising, transactional knowhow and project management skills.

The result of this successful acquisition added around 20% to TMR’s existing customer base and expanded its geographical reach to both the South West and Wales. It also allowed MSL accounts to benefit from TMR’s management capabilities, technical support and improved maintenance packages. This eventually leads to a well-aligned and seamless integration between the two companies, helping TMR achieve its growth objectives and strategic business visions.