Jakes Indoor Softplay and Mini Farm

CHALLENGE

The clients contacted Savills at the beginning of 2023 as they were looking to dispose of the business in order to retire. They had owned the business for 12 years, during which time they had invested in the site to develop a well-established business with potential to diversify further. Savills provided them with marketing recommendations and instructions were confirmed in early March.

SOLUTION

As the clients did not want the sale process to have an adverse effect on the business, it was agreed that the sale would be handled on a strictly confidential basis with offers being invited rather than a fixed guide price. In early May Savills emailed a number of parties registered on their database who were looking to acquire property of this nature, together with a target list of operators of similar businesses who had also been identified. All parties were provided with a brief outline of the opportunity but this did not disclose the location or identity of the business, and they were required to sign a non-disclosure agreement before being provided with a copy of the bespoke sale particulars which had been prepared for the sale. Seriously interested parties who wished to progress their interest were subsequently provided with access to an online data room containing more detailed information about the property and business. Viewings were conducted during June and July, and a number of parties indicated their intention to submit a bid.

RESULTS

A formal bid deadline was not set, but the interested parties were invited to submit bids by the end of July which resulted in a number of offers being received. A preferred bidder was identified and the vendors entered into negotiations with them. During the negotiations it was decided that the transaction would be dealt with as a share sale as opposed to an asset basis, and Heads of Terms were entered into in October 2023. Savills was heavily involved in the discussions between the parties and their advisers and continued to provide advice to the vendors until the sale was completed in March 2024.