YFM backs MBO of SOS Leak Detection

Wahida Ahmed
05 September 2022

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UK-based sponsor YFM has acquired a majority stake in Bedfordshire-headquartered water damage repair and water detection business SOS Leak Detection in a primary buyout.

Following the deal, the founders of the business, Nik Day and Brad Wilby, will remain significant investors in the company and provide strategic and business development support, according to a press release.

With YFM's support, SOS Leak Detection plans to expand its service range, the press release noted.

David Wrench, investment partner at the sponsor, told Unquote that YFM deployed equity via YFM Equity Partners Buyout Fund II, which held a final close in March 2020 on GBP 80m and makes investments of GBP 3m-GBP 10m in UK-based small businesses, according to Unquote Data.

The investment in SOS Leak Detection marks the fifth deal from the fund. The vehicle aims to make between 10-11 deals and plans to make at least one more deal by the end of this year, Wrench said.

Transworld Business Advisors led a sale process for the business, said Wrench. YFM's core plan is to focus on organic growth and the sponsor aims to double the size of the company over the next three to four years. The sponsor also has a pipeline of targeted acquisition opportunities, he said.

The sponsor has previously supported other businesses operating in the technical services space, having backed the MBOs of Checkmate, an Elland-based passive fire protection specialist in 2018; RGE Services, a UK-based fire and electrical compliance services provider in April 2021; and Winchester-based GHG, a loss adjusting and claims management specialist in July 2020.

Company
Founded in 2011, SOS Leak Detection is headquartered in Wyboston Lakes, Bedfordshire, and has a team of 35 employees. The business detects water leaks and predominantly serve UK-based customers, largely in the insurance sector. SOS Leak Detection has resolved more than 15,000 escape of water cases over the last three years, according to the press release.

People
YFM – David Wrench (investment partner).
SOS Leak Detection – Stuart Black (chairman); Nik Day (co-founder); Brad Wilby (co-founder); Jamie Nash (managing director).

Advisers
Equity – James Cowper Kreston (accountants); Shoosmiths (legal); PMSI (commercial due diligence); Crowe (financial due diligence); GT (exit & IT due diligence); Catalysis (organisational and people due diligence).
Vendor – Transworld Business Advisors (corporate finance); Ashtons (legal).