Acora completes Veber acquisition during the pandemic
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Acora completes Veber acquisition during the pandemic Acquisition Strategy, Strategic review, Technology December 2, 2025 Veber, a London-based managed services provider (MSP) has been acquired by Acora Ltd, a UK-wide MSP with offices in both the South East, London and the Midlands. Established in 1999 Veber’s core business is providing hosted managed services to a mix of SME and corporate customers. Acora’s ambition is to be the number one UK managed service provider to the mid-market and the acquisition of Veber enables Acora to scale its private cloud offering as part of this strategy. Evolution Capital was appointed by the shareholders to advise with planning their exit strategy from the business. After a thorough review of the business, Veber implemented a number of pre-sale recommendations and Evolution Capital undertook a targeted marketing approach to qualify potential acquirers. The process culminated in a successful sale to Acora for an undisclosed sum in August 2020. Tim Poultney, Veber’s CEO said, “Although I started Veber over twenty years ago, I have limited exposure to the process of preparing and selling a business. I took the company to a stage where it was profitable, stable but the business now required new ownership to maximise the potential I had created. We engaged Evolution Capital as our advisors to prepare the business for sale. Their preparation and expertise throughout the process was key to the success and enabled a smooth exit with a knowledgeable and market-leading acquirer.“ Acora, who since Spring 2020, is supported by Palatine Private Equity LLP has made a number of acquisitions since 2017 and continues to look to bring further high-quality businesses into its Group. Nigel Cook, Evolution Capital’s MD, said, “In these challenging times, when professional buyers such as Acora and their PE investors are behaving more cautiously, it is even more critical, for shareholders seeking to achieve maximum value, that business sale propositions are developed from sound analysis and are defensible under the microscope”. David Hemmings, Head of M&A for Acora said, “We received a clear and detailed Information Memorandum from Evolution Capital in March 2020 which allowed us to effectively assess the opportunity. Veber had good customers and a number of very capable staff. With Evolution’s help, even during Lockdown, we were able to agree HoT’s by May 2020.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (17) Analytic Services (3) Blog (18) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Acora completes Veber acquisition during the pandemic December 2, 2025 Acquisition Strategy, Blog Evolution Capital Advises ACR IT Solutions in the business sale to BDR Group December 2, 2025 Acquisition Strategy, Blog Evolution Capital Advises PACE Telecom in the Business Sale to Enreach UK December 2, 2025 Acquisition Strategy, Blog Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd December 2, 2025 Acquisition Strategy, Blog Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. FAQ Frequently Asked Questions Request a Confidential Consultation Discover Your Business Value Start with a strategic assessment to understand your maximum potential valuation in the current market. Contact us now Company About Us Blogs Our Location Careers Our Services About Us Sell Side Buy Side Data Work
Evolution Capital Advises ACR IT Solutions in the business sale to BDR Group
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Evolution Capital Advises ACR IT Solutions in the business sale to BDR Group Acquisition Strategy, Business Sale, sale, Strategic review, Technology December 2, 2025 Evolution Capital Advises ACR IT Solutions in the business sale to BDR Group The shareholders of ACR IT Solutions, based in Bury, Greater Manchester concluded the successful sale of the business to the BDR group, a specialist IT supplier, located in Stratford on Avon. The sale of ACR, a supplier of IT infrastructure and support, was concluded in January 2021 for an undisclosed sum following a negotiation period of six months between buyer and seller. ACR’s board of directors appointed Evolution Capital to provide expert advice and to identify an appropriate acquirer for the business in 2019. The eventual acquirer, the BDR Group have made a number of complementary acquisitions since its inception 1991 and were identified early in the engagement as a potential buyer for the business.Founder and majority shareholder of ACR, Tony Burrison said, “Our engagement with Evolution Capital was the catalyst for success. Not only did they provide us with a safe pair of hands but their understanding of our requirements and their detailed approach was superb from start to finish.” Nigel Cook, MD of Evolution Capital said,“We are always pleased when the application of our expert advice and unique methodologies provide such a favourable outcome. We believe the goals of both parties have been exceeded with the speed and value of this transaction.” Tony Burrisson concluded by saying, “My major takeaway from the transaction is that it is never too early to engage with the right advisors. No company should attempt a disposal process without getting an expert advisor. For our part getting the right one was the best money we have ever spent. Evolution Capital were good value and without them the venture would probably not have completed so favourably.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (16) Analytic Services (3) Blog (17) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Evolution Capital Advises ACR IT Solutions in the business sale to BDR Group December 2, 2025 Acquisition Strategy, Blog Evolution Capital Advises PACE Telecom in the Business Sale to Enreach UK December 2, 2025 Acquisition Strategy, Blog Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd December 2, 2025 Acquisition Strategy, Blog Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix December 2, 2025 Acquisition Strategy, Blog Life after a sale: interview with ICOM founder John Donoghue December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. FAQ Frequently Asked Questions Request a Confidential Consultation Discover Your Business Value Start with a strategic assessment to understand your maximum potential valuation in the current market. Contact us now Company About Us Blogs Our Location Careers Our Services About Us Sell Side Buy Side Data Work Resources Faq Client Dashboard Support Our Location Contact Us (020) 3696 2810 Info@evolutioncapital.com 68 King William Street, London, EC4N 7HR The Granary, Oak Lane, Chichester, PO20 7FD Subscribe Subscribe to our newsletter
Evolution Capital Advises PACE Telecom in the Business Sale to Enreach UK
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Evolution Capital Advises PACE Telecom in the Business Sale to Enreach UK Acquisition Strategy, Strategic review, Technology December 2, 2025 Evolution Capital Advises PACE Telecom in its sale to Enreach UK. Acquisitive European unified communications group Enreach, has strengthened its position in the UK telecommunications market through the acquisition of Pace Telecom. Established in 1993, Pace Telecom is a communications provider with over 1000 customers. Evolution Capital was engaged by PACE Telecom in 2019 to prepare the business for sale, introduce the company to potential acquirers and manage the process to a successful conclusion. The sale of the business to Enreach represents a highly successful outcome after an in-depth and detailed process involving business analysis, preparation and execution of strategy.Major Shareholder and CEO of PACE, Jamie Hughes said, “I am excited to see Pace Telecom join Enreach at such a pivotal time of growth and innovation for the group after being a partner for many years. At Pace Telecom, we have almost 30 years of experience in helping our customers to become more flexible and efficient through our solutions and joining Enreach will only help their businesses to grow even further. We look forward to achieving maximum success as part of Enreach.” Pace Telecom is an excellent fit for Enreach, having been a customer of their Service Providers brand for several years and specialising in cloud telephony. By the end of 2021, Enreach expects to have launched an ambitious product roadmap to the UK market, covering its comprehensive group-wide portfolio. The acquisition of Pace Telecomm is an important part of this process. Duncan Ward, CEO Enreach UK, said: “By adding Pace Telecom to Enreach here in the UK we are able to further improve on the products, services and the overall experience we provide our customers. Pace Telecom has been a partner of Enreach for Service Providers for several years and, with the team already confident taking our cloud platform to market, we are certain that we can build on this success. Together we will focus on our portfolio of cloud solutions, broadband and mobile, as well as the new products, integrations and platforms we are set to launch over the coming months. We are delighted for Pace Telecom to be joining us on this journey and for the expertise, the team will bring.” Nigel Cook, Group Managing Director, said: “Jamie has engineered a fantastic result for shareholders, management team and the customers of Pace Telecom, who now will benefit from being part of the leading European UCaaS enterprise, backed with capital from the Pemberton and Waterland partnership. Evolution Capital is most pleased to have advised in this outstanding outcome for shareholders.” Nigel Cook, Group Managing Director More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (15) Analytic Services (3) Blog (16) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Evolution Capital Advises PACE Telecom in the Business Sale to Enreach UK December 2, 2025 Acquisition Strategy, Blog Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd December 2, 2025 Acquisition Strategy, Blog Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix December 2, 2025 Acquisition Strategy, Blog Life after a sale: interview with ICOM founder John Donoghue December 2, 2025 Acquisition Strategy, Blog Strategic advice leads to private equity investment in Ridgewall December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales,
Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd Acquisition, Acquisition Strategy, Business Sale, Strategic review December 2, 2025 Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd. AdEPT, one of the UK’s leading independent providers of managed services for IT, connectivity, unified communications solutions, and cloud services, acquired Datrix Limited for £16m (an initial sum of £9m) which has been funded through the Group’s new bank facility. Datrix is an established, award-winning supplier of advanced cloud-based networking, communications, and cybersecurity solutions, headquartered in London, with expertise in the growing Software-Defined Wide Area Networking market. Evolution Capital was appointed as advisors to AdEPT to investigate the market and identify and introduce suitable cloud-based specialists as acquisition targets. Datrix was identified as a substantial, strategically important acquisition that was in line with AdEPT’s stated strategy. The acquisition fulfilled the stated criteria of enhancing the Group’s capabilities and increasing its market share in key cloud-centric growth.Ian Fishwick, Chairman of AdEPT, said, “The Datrix acquisition is the fourteenth transaction that we have completed with the advice and guidance of Evolution Capital. The best recommendation that I can give anyone when considering whether to engage with a professional adviser is that we continue to use Evolution Capital regularly and keep paying for them to deliver their services.” Phil Race, Chief Executive of AdEPT, said, “Datrix is a high-quality business with a well-established customer base, generating strong levels of recurring revenue and a cash generative, capex light, business model. We are delighted that the key members of the Datrix senior management team have chosen to join us. I look forward to working with them over the coming years and, on behalf of the Board, welcome them wholeheartedly to AdEPT.” Mark Thomas, Managing Director of Datrix, said “We are delighted to become part of the AdEPT Technology Group. From the outset, it was clear that the solution set we take to market is complementary to AdEPT’s, and that the combination of AdEPT and Datrix expertise will bring benefits to both parties, and crucially to our customers. Our joint presence in the NHS will undoubtedly create new opportunities and being part of a larger group will help us capitalise on the growing and substantial market for advanced cloud-centric networks and cybersecurity.” Nigel Cook, Group MD of Evolution Capital said, “We are delighted to have advised AdEPT Technology Group with this, our fourteenth acquisition together. Each deal is unique and I am most pleased with the speed in which all the teams – Datrix, AdEPT and Evolution Capital –achieved our end of year deadlines and without compromising quality and value for all parties.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (14) Analytic Services (3) Blog (15) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Evolution Capital advises AdEPT Technology Group on the Acquisition of Datrix Ltd December 2, 2025 Acquisition Strategy, Blog Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix December 2, 2025 Acquisition Strategy, Blog Life after a sale: interview with ICOM founder John Donoghue December 2, 2025 Acquisition Strategy, Blog Strategic advice leads to private equity investment in Ridgewall December 2, 2025 Acquisition Strategy, Blog Evolution Capital advises on the sale of Between the Lines Communication to Arrow December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our
Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Successfully Exiting Your Business: A Conversation with Mahmood Chaudhri, Founder of Datrix Acquisition Strategy, Strategic review, Technology December 2, 2025 Cloud-based networking, communications, and cyber-security solutions expert Datrix was acquired by AdEPT Technology Group in April 2021. Evolution Capital talks to Mahmood Chaudhri about the motivations, lessons and key factors that enabled his successful outcome. EC: “Why did you start Datrix and what was your mission?” MC: I started Datrix out of frustration really. The organisation I was working for in my 20’s seemed to care less about our customers than I did, and I felt that with the right team around me I could offer a much better experience for our customers. Consequently, I left and founded Datrix. So, 27 years later I am here, having achieved the outcome that I always wanted for myself. EC: How has the market changed since you founded Datrix and have you adapted your strategy to respond to the changing landscape? In the early days of 1994, we were selling computers and peripherals through magazines. The technology was moving at quite a pace and taking huge leaps every few years. We were supplying leading-edge solutions across several private and public sectors. This required us keeping abreast of relevant technologies and entering new areas. For example, we worked in data centres with cloud provision and SaaS related solutions very early on which meant we had to punch well above our weight. We still must maintain that leadership position as the landscape is constantly changing and highly dynamic. Companies wanting to emulate our success have to find their ‘sweet spot’. Today, there is not a single IT supplier that has solutions to fit all requirements. It is essential to find the customers that are right for you, not just the other way around. EC: What is unique about Datrix? Datrix has been a privately-owned business for over 25 years and most of our customers have been with us for well over 10 years. We work in several private and public sectors; however, our core focus is on healthcare. We have an extensive healthcare property portfolio across the whole of the UK and provide enterprise technology solutions on a 24/7/365 basis. This means that the barrier to entry for competitive organisations is high which by default significantly reduces quality competition. EC: What was your first experience of Evolution Capital and how would you rate their performance in the process? Datrix was first contacted by Evolution Capital in 2016 and they have kept in touch ever since. Recently they came to us when we were ready to sell – representing a potential buyer. Their overall attitude and demeanour when I met them was completely different from other similar organisations that had contacted me, and Evolution Capital instantly got my undivided attention. They demonstrated a clear understanding of our requirements and articulated a pragmatic way forward. Evolution Capital’s proposition was compelling enough for me to proceed, and I presented it to Datrix’s advisors. The rest, as they say is history..!! EC: Why was AdEPT a good fit for Datrix? I have come across many organisations over the years that have seen Datrix as a good fit, but the timing, business culture and synergies with any of them was questionable. It was never enough to persuade me to sell my business to any of them. Evolution Capital’s initial presentation of AdEPT together with all the associated benefits and deliverables was accurate and compelling and guided us toward making the right decision. Meeting the Chairman, CEO & FD of AdEPT was enough to convince me and my team at Datrix that this was a perfect fit. EC: What do you believe were the key factors in achieving a successful outcome for the shareholders? I have always retained the majority shareholding at Datrix, which actually shrunk from 75% to 55% over the years as I rewarded and incentivised key members of my management team and staff. My advice to any business owner wanting to achieve a successful outcome would be this, “If you can’t achieve the outcome you want by yourself, bring people into your business on a healthy salary and also offer them a stake in the game. Give up some of your shares for that purpose or privilege.” The other shareholders, of course, needed the right financial outcome, but most importantly I wanted a good cultural fit with the new owner. They would need to share my drive and ambition to offer leading edge technology to their customers and to develop a bigger enterprise client base. It was also important that most of the other shareholders at Datrix retained senior positions as part of the new AdEPT management team. EC: What has the process taught you and what would your advice be to owners considering selling their business? I wish someone who had been through my recent learning curve had knocked on my door and advised me 15 years ago; I could so easily have prepared myself for a sale of the business then. But the only value in speaking with anyone is if they have actually gone through the experience of selling a business themselves. Attending seminars and reading relevant articles and books is of help, but there is nothing like going through the process personally and taking listening to the advice of people who have. Importantly, owners selling their business need to engage with organisations like Evolution Capital, who will give them essential advice. They will guide them through the process in an honest, credible, and professional manner and without the agony that often accompanies a business disposal. EC: What do you see as the biggest challenges in the industry right now? IT businesses need to accelerate their adaption and adoption of SaaS and cloud services. Additionally, there are an increasing number of cyber-attacks threatening our industry and suppliers need
Life after a sale: interview with ICOM founder John Donoghue
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Life after a sale: interview with ICOM founder John Donoghue Acquisition Strategy, Strategic review, Technology December 2, 2025 Life after a sale: interview with ICOM founder John Donoghue In the second of our Evolution Capital Alumni series, we speak to John Donoghue, founder and owner of Aylesford-based Icom Holdings, about how selling a stake in his business has given him a new lease of life. John Donoghue sold a majority stake in his business to award-winning BDR Voice & Data Solutions back in January 2018. But unlike many in his situation, Donoghue is still very much involved in the business. Indeed, he says the deal has given him a renewed sense of purpose. He explains: “To be brutally honest I was quite sick of the business by the time it came to sell it. However, the transaction has completely revitalised the old management team – and me. I receive a lot of support from the new owner and the whole thing has given me a new lease of life. In fact, we both have our sons working in business, which is a testament to the belief we have in the future – and provides us with a good deal of succession planning.” Icom was advised by Evolution Capital, which was engaged to prepare and structure the deal. Evolution was also tasked with finding a suitable and complementary buyer against some exacting criteria. Icom’s strong contracts and relationships in the public sector, and particularly their status as a Government Framework Supplier, made them particularly desirable. Donoghue adds: “I took a great deal of care and diligence in choosing the right buyer, who had to be a like-minded business partner. There were plenty of good advisers out there, but we needed one who knew our marketplace and were sensitive to our aspirations. Evolution Capital understood our requirements and came up with a shortlist of six potential buyers of which three were shortlisted. Additionally, I had an incredibly loyal management team which had been with me since the mid-90s and any decision I made had to be right for all of us. It was a great result all round.” Given that John had worked tirelessly on the business since its inception since 1990, how has life changed since the sale? Donoghue continues: “The disposal of a large part of the business was very rewarding, both commercially and strategically, and has certainly provided us with the necessary financial security for the future. However, as far as my time is concerned, I probably have even less time than I used to. The time savings I have made on the operational side have been swallowed up on the strategy of the new group.” However, he claims he is enjoying his new role in the larger business. Indeed, he has no personal exit plan and sees ICOM “going on forever”. He adds: “The business has doubled since the disposal and its general direction has pleased all concerned.” In his spare time, 55-year-old Donoghue is as competitive a sportsman as he is an entrepreneur. He is an accomplished cyclist, triathlete and golfer who has always encouraged a competitive attitude in his children. He continues: “Sport is analogous to life. In football, for example, there are lots of average players who have transformed themselves with the right attitude. With a combination of determination, hard work and honesty, anything is possible. Take a look at Gary Neville when he was playing for Manchester United – there were arguably much better players than him around but he had an attitude that transformed not only himself but all those playing around him – truly inspirational. Business is very similar – the right attitude can be transformative.” Donoghue, who started his first business from the garage of his house, learned to perfect the process during his journey and a lot of water has passed under the bridge since those early days. The company has changed considerably since the sale and there has been a process of symbiosis within both businesses, with methodologies and best practices osmotically seeping into each. “We are a lot more sales led these days and there is far more process and structure involved in the commercial side of the organisation. It’s amazing what a new set of eyes and a fresh approach can achieve,” he explains. The deal has clearly injected the whole business with a renewed sense of energy. Plenty of restructuring has taken place and there are centralised benefits coming through as well as a simplification of much of the commercial process. There have also been lots of opportunities for cross-selling and up-selling between the two groups of customers. Donoghue adds: “As a business we are investing heavily and expanding, which is having a very positive effect on our bottom line. We are also considering the next acquisition, which I am very involved in personally. My main challenge these days is managing my time effectively in what is essentially a brand new role. ”For most business owners, there is no formal training programme to prepare for creating and executing a successful business plan other than lots of heuristic training, learning quickly and not repeating costly mistakes. John is no exception and feels there were a lot of things that he would do differently with the benefit of hindsight. He continues: “I would definitely pay more attention to the cash flow and particularly the P&L. In hindsight, I would also ensure I had a flexible management team that could evolve as the company changed. However, top of my list would be to get expert advice from industry experts like Evolution Capital so that by the time I was ready to sell I would be completely prepared. I could not have done what I did without their advice and assistance and would recommend them to anyone. ”The telecoms space has been subject
Strategic advice leads to private equity investment in Ridgewall
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Strategic advice leads to private equity investment in Ridgewall Acquisition Strategy, Business Sale, strat, Strategic review December 2, 2025 Evolution Capital is delighted to announce its strategic review and three-year M&A, funding and advisory programme of London-based MSP Ridgewall has resulted in an investment in the business by leading private equity firm Inflexion. The private equity investment is being made by Inflexion Enterprise Fund V, Inflexion’s dedicated lower mid‐market fund. The firm has also backed Ridgewall’s simultaneous acquisition of QDOS, a specialist provider of managed IT and communications to the hospitality industry, including leading international hotel brands. Evolution Capital was commissioned in May 2017 to deliver a strategic review of Ridgewall in a bid to advise shareholders on which direction to take the business. The Evolution Capital advisory team explored various different strategic options including a sale, organic growth and a combination of acquisitions, funding and organic growth. This detailed review also included providing current and prospective valuations. Shareholders had a target valuation in mind, however the review indicated the business was short of that target. Evolution Capital therefore set out a range of plans and options to advise and help shareholders achieve their goal over an appropriate time period. The plan involved strategic M&A, funding and organic growth in value, including an increased focus on recurring revenue contracts as opposed to one-off and multi-service offerings. Acquisitions had to fit the right profile and enhance value, ideally with synergies as well. Ridgewall agreed with the plan and Evolution Capital set about advising on implementation. Acquisitions were made in 2018 (Connecting London, Telnet International) and 2019 (Nomis Connections), before the fourth acquisition (QDOS) at the same time as the partial sale to Inflexion last month. Ridgewall’s chief executive Dominic McAnaspie said: “Evolution Capital worked with us for two-and-a-half years and demonstrably enhanced value. The team’s thoroughness and attention to detail, their knowledge of the market and can-do attitude was exactly what we needed. The plan they put in place, with its focus on developing long-term customer relationships, enabled us to achieve our target valuation goal. Without Evolution Capital the deal with Inflexion would never have happened. ”Evolution Capital advised on the four acquisitions, including introducing and advising on debt funding from Clydesdale Bank, as well as the investment by Inflexion. Ridgewall was established in 2011 and provides business critical services in IT, communication and cyber security to SMEs. QDOS-sbl is Ridgewall’s fourth acquisition in the last twelve months and enhances the company’s technical capability and international footprint as well as diversifying the client base. The combined group now employs over 100 people, servicing around 1,800 customers.Duncan Gregory, transaction services director at Evolution Capital, said: “We’re delighted to have advised Ridgewall throughout such an exciting time in the company’s journey. We believe the combined group is now well placed to grow capital for investors in an exciting sector through a buy-and-build strategy. We have seen for some time that the sector is somewhat fragmented, creating genuine opportunities for such a strategy.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (11) Analytic Services (3) Blog (12) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Strategic advice leads to private equity investment in Ridgewall December 2, 2025 Acquisition Strategy, Blog Evolution Capital advises on the sale of Between the Lines Communication to Arrow December 2, 2025 Acquisition Strategy, Blog Weathering the Covid 19 Storm, Reinforcing The Value December 2, 2025 Acquisition Strategy, Blog Analysis: will the reduction in Entrepreneurs’ Tax Relief motivate or deter deals? December 2, 2025 Acquisition Strategy, Blog Preparation is Key During the Covid-19 Crisis December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction
Evolution Capital advises on the sale of Between the Lines Communication to Arrow
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Evolution Capital advises on the sale of Between the Lines Communication to Arrow Acquisition Strategy, Strategic review, Technology December 2, 2025 Evolution Capital, the leading mid-market corporate finance boutique specialising in bespoke advice for the technology, media and telecommunications (TMT) market, is delighted to announce it advised on the sale of telecoms business Between the Lines Communication to Arrow Communications. The business sale offered a clean exit for Between the Lines Communication’s majority shareholder, founder and chief executive Rob Lamden. Between the Lines Communication is a successful, Bracknell-based, mid-market business that provides recurring mobile, voice and connectivity for a strong customer base of approximately 450 unique business-to-business customers across the UK. The business was established in 2002 and has grown organically under the direction of its founder to become a leader in its field. Initially it operated exclusively in the telecoms sector, primarily offering landline and broadband services, before expanding into cloud telephony and IT services.More recently, Between the Lines Communication entered into a lucrative partnership with CityFibre, the UK’s largest alternative provider of wholesale fibre network infrastructure and the builder of Gigabit Cities. This successful collaboration allowed for greater expansion into connectivity in the Thames Valley, helping the business drive a strong growth in profit and local identity. Evolution Capital was mandated to work with Between the Lines Communication to develop an exit strategy for the company’s shareholders and prepare the business for sale. Following a detailed and thorough strategic review, Evolution Capital identified a buyer in Arrow, the leading UK business providing a full-telecoms, IT, energy consultancy and service proposition. Arrow’s management team found the deal proposition attractive and that the business fitted into their vision and portfolio. Evolution Capital’s transaction team then worked with Between the Line Communication’s management, preparing the business for sale, using in-house business sale processes and unique valuation methodologies. This included ensuring the company’s customer and supplier contracts showed a strong pipeline of growth, that the business structure was clean and tax efficient and that all aspects of the company would pass through buyer expectations. This innovative and bespoke process, which has been developed in-house by Evolution Capital following decades of transactional experience, ensured the acquisition went ahead despite a number of internal challenges and market uncertainty in the run-up to the 2019 General Election. Lamden added: “Evolution Capital identified a few potential problems at the beginning of the sale process, which did indeed occur, however the firm’s tenacity at working through these issues was exemplary. The team managed a difficult situation with great sensitivity and ensured the deal got done. ”Nigel Cook, managing director and founder of Evolution Capital, commented: “I am proud of the time and effort that went into the completion of this deal. When a company proposition is strong, the match to the buyer is good and the adviser is highly experienced and is trusted by both sides you can work through the challenges. We put a lot of work into the deal behind the scenes and I am delighted for the shareholders of Between the Lines Communication, who are now free to explore new ventures. ”Arrow’s executive chairman Chris Russell added: “We’re thrilled to welcome Between the Lines Communication into our business and look forward to developing a strong partnership going forward. The synergies between the two firms were clear from the start.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (10) Analytic Services (3) Blog (11) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Evolution Capital advises on the sale of Between the Lines Communication to Arrow December 2, 2025 Acquisition Strategy, Blog Weathering the Covid 19 Storm, Reinforcing The Value December 2, 2025 Acquisition Strategy, Blog Analysis: will the reduction in Entrepreneurs’ Tax Relief motivate or deter deals? December 2, 2025 Acquisition Strategy, Blog Preparation is Key During the Covid-19 Crisis December 2, 2025 Acquisition Strategy, Blog Preparation is Key During the Covid-19 Crisis December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively
Weathering the Covid 19 Storm, Reinforcing The Value
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Weathering the Covid 19 Storm, Reinforcing The Value Acquisition Strategy, Business Sale, Strategic review December 2, 2025 As the world continues to react to Covid-19 there has been considerable debate about our preparedness for a global pandemic. At the time of the earliest reports of the outbreak, it was impossible to predict the repercussions and effects on our well-being, our economy and our working lives. According to the Office of National Statistics over a quarter of UK businesses have shut down temporarily whilst those still operating have reported reduced turnover although there have been some notable exceptions. The changes forced on businesses have catalysed a rapid response from innovative organisations looking for solutions for their staff and customers. A precipitous reaction to the challenges of an increase in remote working, creating new infrastructure, accelerating change-based innovations and managing the ‘new normal’ are currently testing management teams country-wide. -Webinar During the last recession, sparked by the failures of financial institutions in 2008, some industries were far more resistant than others. FMCG businesses manufacturing household essentials like soap and detergents were particularly resilient whilst many construction and financial services companies went out of business altogether. During the current Covid 19 emergency travel, luxury, hospitality, retail and car manufacturers have suffered adversely whilst many in the technology sectors are over-performing. Accordingly, technology providers with good on-line models, strong cloud-based processes and best practices for home working have responded particularly strongly and, once the crisis abates should realise significant value. It appears that the better-prepared companies in Evolution Capital’s ICT sector have been managing the crisis, both internally and externally, with calm and assuredness. Smart utilisation and the application of rigorous technology and IT processes have been instrumental in combatting many of the challenges thrown up by the situation. Global corporations, government and mid-market businesses are now increasingly reliant on technology to support communities, customers and their employees forced into quarantine or self-isolation to try and contain the virus. In many instances, there has been an acceleration and evolution both in the deployment and roll-out out of technology that may once have been deemed ‘productivity tools’ but are now seen as essential to our working and social lives. Collaborative tools and remote working have rapidly become vital to combat the ‘virus’ effect. Data centres and network infrastructure are facing an exponential increase in the demands that businesses are putting on them daily and real-time, real-world stress testing has been put into immediate, heuristic practice. As the majority of our workforces are currently almost exclusively home-based the critical communications networks are extending far beyond the fire-walls for which they were intended. Security presents businesses with a constant threat as they attempt to extend these capabilities without compromising the ability to counteract the malcontents looking to exploit the current situation. Every single organisation currently fighting to come to terms with their current challenges are reliant on digital services. The first thing that many businesses did when the outbreak arrived was to send all their staff home instituting a regime change, standards and best practices for the new environment. For smaller businesses already working ‘within the cloud’ the transition was easily managed but for larger mid-market companies the practice needed a radical and immediate approach. Alex Cliffe, Commercial Director of unified communications supplier Elite Group said, “Our first consideration was to our staff and we had to institute an immediate homeworking practice for nearly all of our people. Obviously, there were still customers that needed a physical visit for essential tasks and our visiting employees needed protective equipment. Our HR team had to work hard to react quickly as we now have over 250 people homeworking. Well-being, as well as productivity, in the new environment, were key objectives and once we had ‘steadied the ship’ it was important to have regular ‘non-work’ contact with everyone. Our first, simultaneous live video call, enabled by Microsoft Teams, which featured the majority of our work-force was a milestone that we passed early on.” The requirement for Elite’s products, services or support has not slackened off as their customers put a greater reliance on technology. While demand has not significantly decreased, customer support requests have taken a different form as security and compliance concerns driven by home-based workforces start to percolate through. “Our internal experiences using collaborative products like MS Teams have greatly enhanced our proposition to customers. Given that we are now confident in applying technology to the complexities of homeworking quickly we are able to pass on the benefits of those lessons to customers. We have turned our own experiences with technology into a number of positives for our customers in productising the process.” Alex Cliffe, Elite Group VTSL, a leading provider of VoIP business phone systems, have also adopted a change-based approach both internally and externally. CEO and founder Rob Walton said, “We adopted the ‘cloud’ some time ago for our work-force. We are very comfortable with this approach and overcame the obstacles and issues a while back. We have been using video to ‘conference’ internally for a long time so it is part of our modus operandi. However, this experience has helped us get our customers into a new, remote way of working very quickly and the simple expedient of supplying ‘softphones’ to all their staff has been incredibly efficient. They are also far more effective than mobile phones in protecting brand identity. We have been inundated with enquiries from customers about setting up remote environments, in fact during the first week of the crisis our order book doubled. This demand has extended to our proprietary tools and products, which we have had to develop and rollout quickly. It is not just about supplying units, the second phase is about ensuring that they are deployed properly and new behavioural changes are made. Our customer success teams ensure this happens through
Analysis: will the reduction in Entrepreneurs’ Tax Relief motivate or deter deals?
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Analysis: will the reduction in Entrepreneurs’ Tax Relief motivate or deter deals? Acquisition Strategy, Strategic review, Technology December 2, 2025 The reduction of Entrepreneurs’ Tax Relief announced in the 2020 budget was not a surprise. However, for many of Evolution Capital’s clients who we advise throughout the complete business disposal process, there has been a very real effect as a result of reducing the incentive. An owner disposing of their qualifying business today at a gain of £10 million will now pay an additional £900,000 in capital gains tax. The ‘overnight’ loss of such a generous relief emotes strong sentiment among the business community, particularly those serial entrepreneurs with a record for creating and disposing of TMT businesses in the mid-market. Anne Stokes, CEO and founder of award winning technology consulting services business ST2 said: “My view is very simple, they should not have reduced it for existing owners. There are plenty of entrepreneurs that have ploughed everything into their businesses, taken all the risk and have received next to nothing by way of help from those who could have provided it most. We have worked 7-day weeks to make the business what it is and have worried ourselves senseless at times to make sure that our staff get paid – often before us. This is the thanks we get.” And yet, whilst the Government’s reduction in the terms of the incentive is not particularly welcome, many believe the move is not sufficiently pejorative to dampen the entrepreneurial spirit. Although the lifetime allowance has been drastically reduced, many experts believe that £10m was always too high a threshold to serve its original purpose and encourage new ventures to come to market. Glen Thomas, Evolution Capital’s Tax Advisor, said: “The previous limit of £10m was probably too high to encourage the entrepreneurial behaviour for which the incentive was designed. A figure of between £2m to 3m might have achieved the goals of the scheme a little more successfully. An alternative could have been to extend the qualifying period of ownership to five years or even more to encourage the sustainable growth of a business over an extended period of time. The government is gambling that such a move will not adversely affect entrepreneurial behaviour on the basis that a standard rate of Capital Gains Tax of 20% is still relatively low compared to historical rates.” The relief allows business owners to pay a reduced 10% rate of capital gains tax on the sale of their businesses instead of the normal 20% rate. With immediate effect, the lifetime limit of qualifying gains, which can qualify for the relief, is reduced to £1m from the previous lifetime limit of £10m. This results in a potential loss of tax relief equivalent to £900,000. The original purpose for introducing Entrepreneurs’ Tax Relief was to create an incentive for new business owners to set up and grow trading businesses. However, evidence suggested the incentive did not, in fact, encourage those mid-tier business owners but was broadly viewed as a tax break for the wealthy. During his maiden budget speech earlier this month, new chancellor Rishi Sunak told the House of Commons the incentive was “expensive” and “unfair” in its existing format and that 75% of the benefit, worth about £2.4bn a year, was shared by only 5,000 individuals. A 10% rate of capital gains tax is nothing new and was originally introduced by the Labour government of Tony Blair and Gordon Brown in 1998. The 1998 version was expanded by the Conservative government later in 2010. There has been a considerable amount of reaction to the Chancellor’s changes to Entrepreneurs Relief, much of it vociferous, but it remains to be seen as to whether it will be enough to stall owners’ plans for business disposals. Thomas continues: “I don’t think the changes will materially affect many disposal points that were set before this year’s budget. Entrepreneurs might be a little disappointed with the cut in relief but I don’t think it will be a show-stopper.” Tom Carroll, founder of Our IT and an entrepreneur who sold his business under the previous tax relief system, said: “I sold my MSP business in 2018 and I can honestly say that the reduction in relief would not have adversely affected my decision to sell the business. An exit happens when there is a confluence of events that create favourable conditions for a sale and the right ‘tax’ environment is just one of them. Obviously, every owner would prefer the higher threshold of £10 million but most successful entrepreneurs do not start their business by deciding on the date when they will dispose of them. I am sure there were businesses in a hurry to conclude their sale ahead of the budget but the right deal does not always arrive when you want it to and you just have to be pragmatic about things. Changing market conditions are just the nature of the beast and you need to deal with them.” At a macro level, the Chancellor maintains that he listened to both sides of the argument before making his deliberations. However, he felt that there are overriding factors for keeping it, although he had listened to representations for the tax break to be scrapped completely.Sunak also committed £130m in new funding to extend loan facilities to 10,000 start-ups in the next two years. Perhaps this will not be sufficient to assuage the depth of feeling from those entrepreneurs who have lost out directly by the cut in relief but it might be enough to engender some positivity from the small-business lobby.Is your glass half-empty or half-full regarding the cut in Entrepreneurs’ Relief? For those of us working with entrepreneurial business owners in the mid-market, only time will tell. More than 2 results are available in the PRO version (This notice