The Swindon office of Watersheds, the corporate finance firm, has helped bosses at Chippenham-based specialist automotive training agency RTS acquire the business from its founder.
RTS was launched by Richard Wells nearly 30 years and has since worked with many of the world’s leading car manufacturers, incuding Mercedes-Benz, Toyota, Mazda and Nissan, to develop their dealership staff – including dealer principals, sales, parts and service personnel. It has more than 50 staff along with 200 associates around the globe. 
The firm trades extensively in Europe, South Africa and the Middle East, as well as the UK, and recently opened an office in Hong Kong ahead of a predicted increase in demand from clients in the Asia-Pacific region.
Managing director Malcolm Miller joined four years to grow the business further and ensure a long-term future for the business by acquiring it with his team through a management buyout (MBO). They now plan to grow the business, including relocating to larger offices within the town by the end of this year.
The deal involved a complex structure with multiple subsidiary companies, multiple shareholders and investors and contracted revenue streams, which required careful consideration. Watersheds simplified this structure for the MBO team’s bank to secure the funding required.
Watersheds also made sure the management team could get on with their ‘day jobs’ during the process and also led negotiations between the team and Richard Wells to allow both parties to preserve their strong business relationship.
The MBO team included directors John Brannigan, Jessica Starley and Katherine Searle, supported by finance director Alison Noble. Financial details have not been disclosed.
Richard created RTS Group in 1989, following a long career in dealerships and automotive training. The group also includes the FIMTRAC brand, which focuses on trade cycle management and helping dealerships increase point of sale finance.
Malcolm Miller said the buy-out was a natural progression for the company. “I became MD when Richard decided to take more of a backseat. This is the next stage of the business, and I and my fellow directors are very excited at the opportunity to develop the business further.
“While our focus is still to work with automotive manufacturers, increasingly we are working directly with the dealers, as managers realise there is a genuine return on investment to be gained from investing in their staff development.
“We have many exciting opportunities overseas, particularly in China, and we are looking to develop these further.”
The deal was managed by Watersheds’ Sue Green and Jessica Painter of its Swindon office.
Jessica said “I’m delighted to see Richard realise his investment and for the team to enjoy the rewards of owning the company that they have helped to build.”
Malcolm Miller added: “Managing a growing global business at the same time as delivering an MBO would have been an impossible task without the guidance of the right professionals. Watersheds were with us every step of the way and were invaluable through this very steep learning curve.”
The transaction was supported by Lloyds Commercial Finance, with legal advice from Swindon law firm Clark Holt and tax advice from Claritas.
Richard Wells now plans to develop his other business interests.
