Housebuilder turnaround may net owners a fortune

Mon, 08 Oct 2018 | BUSINESS SALE

Derbyshire-based Avant Homes is reportedly being groomed for a sale which could net its hedge fund owners a small fortune.

According to the Sunday Times the business, formerly known as Gladedale, could be valued as much as £600 million, representing a net gain of £425 million for Avenue Capital, Angelo Gordon and Alchemy Special Opportunities.

The investment companies bought Avant Homes in 2014 from Lloyds Bank in what was essentially a distress sale opportunity. Lloyds inherited the business from HBOS which it acquired in the financial crisis. HBOS took over Gladedale after it breached its covenants following an overly ambitious expansion strategy.

The current owners were fortunate to have experienced a favourable housing market over the following three years. With the assistance of the government’s Help to Buy scheme and renewed managerial focus, the business turnaround was complete.

Last year Avant’s profits increased by 39 per cent, rising to £42.6 million.

The company sold 1,902 homes at an average price of £257,400 over the twelve-month period. It currently employs over 700 people across 71 developments.

Avant has been bullish in the City as it courts potential buyers and investors, touting a target of £1 billion of sales - 4000 homes - each year.

The company recently announced a planned investment of over £500,000 in enhanced Information Systems to support its future growth plans.

Key to the business’ success is its understanding of the importance of the relationship between process, technology and people - necessary to build sustainable and profitable growth.


Share this article



Latest Businesses for Sale

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Provider of Joinery & Building Services
North West, UK

Specialises in high-quality refurbishment and maintenance works, including joinery, plumbing, groundworks and building works. Operates on a diverse range of projects across a variety of sectors, including education, construction and social housing. O...

Asking Price: Offers Invited
Turnover: £3,000,000

FREEHOLD


Chartered Surveyors
South East, UK

long established chartered surveyor practice. Over the past 30+ years, our client has built a reputable brand and profitable business offering a comprehensive range of surveying and property-related services. Clients operate in both residential and c...

Asking Price: Offers Invited
Turnover: £450,000


View more businesses for sale

News Search

Latest News

 
20
 
Sep
 

Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE

Thomas Cook Group is reportedly trying to piece together a l...

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
01
 
Sep
 

Evac+Chair presses forward with expansion plans after MBO | MBO/MBI

Emergency chair maker Evac+Chair has, with the support of ac...

 
24
 
Jan
 

Sarson's Vinegar joins Hartley's jam in a sale process | DIVISION SALE

Premier Foods has commenced the sale of its Sarson’s V...

 
05
 
Dec
 

Owners of David Lloyd fitness centres explore sale | BUSINESS SALE

The owners of the David Lloyd Leisure fitness clubs have app...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources