Background
London based Log Delivery is a successful eCommerce retailer, supplying high quality kiln dried logs, firelighters, charcoal and kindling for wood burning stoves, open fires and barbeques. Founded by Barney Dorman in 2010, the business has grown rapidly due to a loyal customer base, quality of service, and consistent market demand.
Barney first made the decision to exit in 2022 and was recommended to speak with Geoff Pinder, a Partner in the MGroup Corporate Finance team.
Preparation
We started with a comprehensive business exit review to fully understand Barney’s motivation for selling the business and future plans, ensuring he had considered all the available exit options, and to set the foundation for a smooth exit process.
Following the initial review phase, we undertook detailed financial analysis and assessment of the market, producing marketing content to present Log Delivery to suitable trade buyers. Leveraging our network and expertise, we identified potential acquirers, evaluating their strategic fit and compatibility with Log Delivery.
Challenges
The main challenges were determining the market value of Log Delivery after a period of rapid growth during the pandemic, identifying an acquirer whose strategic objectives aligned with the business and Barney’s plans, and navigating negotiations to secure favourable terms, including purchase price, payment structure, and post-acquisition integration.
The business was presented to the market and after a series of constructive discussions, terms were agreed with a buyer in the summer of 2022, however, it soon became apparent that the acquirer’s strategic plans were not in tune with Log Delivery, and Barney subsequently withdrew from the deal, pausing the sale process in parallel.
Solutions
Despite the setback, the experience was extremely helpful in assisting the owner to focus on areas of potential risk in the eyes of a buyer, enabling them to build in necessary business improvements and changes where required. A focussed remarketing exercise resulted in a new buyer being identified, and after a period of detailed discussions and negotiation, an acceptable deal was agreed.
The acquisition presented the buyer with the opportunity for growth, expansion and future value creation based on the strategic fit and realisable synergies.
Results
Through our support and guidance, we helped Barney navigate the complexities of due diligence and towards the final stages of the exit process. In the autumn of 2023, Log Delivery was bought by Onyx Commercial Ltd which trades as Luxury Wood, a family-owned East Midlands based retailer, with distribution centres across the UK.
Client testimonial
“Working with The MGroup Corporate Finance was a game-changer for me and my company. Their expertise and dedication were instrumental in navigating the complexities of my sale journey. Thanks to their guidance, we were able to secure the right future home for the business and a deal which delivered my strategic exit objectives. I am immensely grateful to Geoff and his team for their invaluable contribution and would highly recommend their services to any company looking to exit.”
Barney Dorman, Log Delivery
MGCF team comment
“We were delighted to support Log Delivery’s exit journey. From the initial review phase to the final deal, we offered advice, guidance, and reassurance to Barney. The journey had some setbacks along the way, whilst the final deal also had many complexities, but great teamwork and tenacity throughout, meant we could respond positively to any challenge as it arose to seek the right pragmatic solution. On behalf of the whole team, it was a pleasure and privilege to support Barney, and I’m confident the acquisition by the buyer will prove to be a success for all parties.”
Geoff Pinder, Partner, The MGroup Corporate Finance
