Business Bio

P&D Specialist Services Ltd is a specialist electrical and civil engineering contractor based in Derbyshire. P&D offers technology-focused expertise to clients in the highways, rail, tunnel, and power distribution sectors. Focusing foremost on safety, P&D has delivered high standards of workmanship for more than thirty years.

Loan Amount

Undisclosed

Region

East Midlands

Funding Need

EOT

Sector

Civil Engineering


Their Journey

Established by two brothers, Pat and Dave Musgrave, P&D is a Derbyshire-based specialist electrical and civil engineering contractor. Beginning in the highways sector, P&D’s growth over more than 30 years has enabled them to diversify, now catering for a range of commercial, operational and contractual requirements across multiple sectors.

Having established a strong legacy for the company, Pat and Dave looked at the company’s next stage of development. They wanted to create a succession and exit strategy that would not only benefit the staff, but ensure the brand’s longevity within the local community and beyond. So, they contacted business finance specialist JHK Capital to facilitate, who in turn engaged ThinCats to fund an Employee Ownership Trust (EOT) buy out.

After liaising with JHK and P&D, ThinCats funded a successful EOT buy-out over a flexible four-year loan, with options for re-financing at the beginning of the fifth year. This way, the employees have control of 60% of the business, turning employees into stakeholders. Also, while greater employee control is a clear benefit of the EOT, the EOT solution does not change operational structures which was an important part of the succession strategy. As a result, the EOT delivers potentially greater returns to the vendor than a traditional transaction and with lower risk to the business.

Pat Musgrave, co-founder of P&D: “From the beginning, John was fantastic to work with because he took the time to develop a relationship and understand our business needs, which is what traditional banks nowadays simply don’t do. At P&D, legacy has always been important to us, and we wanted to keep it that way. An EOT was the only option that checked all our boxes because it not only gives our employees security, it also ensures that the legacy we have built can still be developed within the community. We are delighted to hand the company over to the people who are the most invested and critical to the success of the business – the employees.”

Imran Khalid, JHK Capital Ltd: “The main focus for Pat and Dave was to protect their employees from any potential uncertainty. We initially reached out to the traditional lenders, but it soon became clear that they didn’t have any desire to do anything outside mainstream lending. So we turned to ThinCats. It’s been great working with ThinCats, they were proactive and flexible – this is what we look for in a long-term relationship with a lender, so we would happily use ThinCats in the future.”

John Brooks, Director Regional Business Development at ThinCats: “The UK is made up of business owners which is why we love facilitating EOTs because we’re putting businesses into the hands of employees and stimulating the potential for growth within the SME community. The benefits of an EOT are twofold: the staff benefit and so does the local community. We are excited to see where P&D grows from here and look forward to continuing our partnership over the coming years.”

From the beginning, John was fantastic to work with because he took the time to develop a relationship and understand our business needs, which is what traditional banks nowadays simply don’t do. At P&D, legacy has always been important to us, and we wanted to keep it that way. An EOT was the only option that checked all our boxes because it not only gives our employees security, it also ensures that the legacy we have built can still be developed within the community. We are delighted to hand the company over to the people who are the most invested and critical to the success of the business – the employees.

Pat Musgrave, co-founder of P&D

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