Tyre wholesale and distribution — Sell-side financial support

Analyse de rentabilité

Tyre wholesale and distribution — Sell-side financial support

Situation : Transactions

Préparation et exécution des transactions

Contexte

Our client, a global tyre manufacturer, was preparing the divestment (exit / carve-out transaction) of a non-core UK subsidiary operating an established wholesale distribution network alongside a national footprint of retail fast-fit centres. The business had experienced limited investment in its finance function, resulting in inconsistencies in financial reporting and reduced transparency on underlying performance. Accuracy was engaged to support exit readiness, including vendor due diligence (VDD), prepare the business for sale and support the transaction through to completion over an 18-month period.

Principaux enseignements

Complex transactions rarely follow a linear path. Accounting issues that appear contained at the outset can resurface under buyer scrutiny — and in a competitive process, the ability to respond quickly and credibly is what determines whether a transaction proceeds. On this engagement, our continued involvement beyond the initial vendor due diligence report / financial fact book phase proved critical: by working through outstanding issues with the preferred bidder and strengthening the finance function ahead of completion, we provided the certainty that ultimately enabled the transaction to close.

Rôle de précision

We provided end-to-end sell-side financial support, including vendor due diligence and quality of earnings analysis, across the full divestiture process:

Prepared normalised EBITDA and quality of earnings (QoE) financial information, adjusting for non-recurring, exceptional and pro-forma items, including carve-out considerations and the impact of the Red Sea shipping crisis, which had materially affected both earnings and net working capital requirements during the period.

Analysed the underlying drivers of financial performance — including price, volume and mix analysis, margin bridge analysis and the incremental earnings contribution of bolt-on acquisitions — to present a clear and compelling view of the business’s growth trajectory for potential strategic and private equity buyers.

Supported management through bidder meetings, data room preparation and Q&A management, and subsequently worked closely with the preferred bidder to resolve outstanding financial queries and provide the certainty required to progress the transaction.

In the lead-up to completion, worked with management to strengthen financial processes and controls, directly mitigating risk in the completion accounts process.