Thu, 17 Dec 2020 | BUSINESS SALE
Liverpool-based modular housing firm Ideal Modular Homes has been acquired in a pre-pack administration after running into cashflow difficulties. The company has been acquired by newly formed IDMH from administrators Quantuma and trading will continue uninterrupted.
IDMH is headed by Tom White, a former board member of Ideal Modular who will now become the company’s new CEO, and Christopher Snape, an Ideal Modular shareholder. The new owners’ pre-existing connection to the firm mean that this is the sort of pre-pack acquisition that may face greater scrutiny once proposed new regulations come in next year.
Ideal Modular Homes was established in 2017 and had become a high-profile operator in the emerging modular homes market. However, the firm was impacted by the COVID-19 crisis which forced it to close operations in the initial spring lockdown.
The company received a CBILS cash injection in June and, in August, was part of a consortium that won a £300 million contract to build 750 affordable rent council homes in the London borough of Greenwich.
In spite of this, Ideal Modular’s COVID-related struggles were compacted when the company received a pay-less notice in regard to “sizeable payment application” from a customer in September. According to administrators, the lower payment impacted the company’s ability to borrow money, ultimately leading to its administration.
Following the acquisition, the company said: “Ideal Modular Homes, North-West based manufacturer, has secured new investment and has been restructured through a pre-pack administration process. The transaction ensures continuity to the running of the business, a strong financial platform for the company’s future and protects jobs.”
“The process will create a seamless transfer of assets and employees from the legal entity Ideal Modules Limited into a new legal entity – IDMH Limited – and facilitates a quick and smooth transfer of the business, allowing trading to continue uninterrupted.”
“We’d like to assure both clients and employees that there is no risk to the running of the company and all business will continue as normal. This is a positive step for the company’s future. A new chief executive officer, Tom White, has been appointed with a view to accelerate Ideal’s growth. Tom will succeed founder Luke Barnes, who has moved on to pursue new ventures.”
For more on how invoicing and payment issues are creating problems for construction firms during the COVID-19 pandemic, check out this exclusive insight.
Find businesses for sale here.
If you are looking for an exit, we can help!
This is an opportunity to acquire a well-established environmental services and specialist construction company located in the South West of England.
This is a unique opportunity to acquire a well-established groundwork and civil engineering service provider in the North West of England, with additional revenue streams from plant equipment hire.
Established and profitable construction company, specialising in new build, refurbishment and property maintenance and working mainly in the South East of England.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.