Benchmark International has advised on the successful sale of Formations Direct Limited to Xephyr Limited in an all-cash deal amounting to nine times the Company’s EBITDA.
Established in 1994, Manchester-based Formations Direct provides company formation services to the accountancy and legal profession. Boasting a reasonably-priced service, and supplemented with quality advice and technical support, the Company grew from humble beginnings to provide a comprehensive service including company searches and credit checks, company restoration, client ID verification and money laundering compliance to thousands of UK accountancy and legal practices.
The acquirer, London-based Xephyr, trading as A1 Company Services, specialises in company formation, administration and information services to professionals. With over 30 years’ experience in the field, Xephyr provides services such as company formations, company structuring, post incorporation services and offshore formations in most jurisdictions across the globe.
Discussing the deal, Benchmark International Chief Operations Officer, James Thornton noted, “The opportunity to acquire Formations Direct proved an attractive proposition with the marketing process generating interest from 59 parties resulting in two firm offers, serving to create a competitive atmosphere surrounding the deal.
“The timescales involved were also impressive, with the deal completing in just over four months from the initial marketing phase being undertaken.
“It has been a pleasure working with all involved parties on this deal and, on behalf of everyone at Benchmark International, I would like to wish them the very best of luck for the future.”