Target Overview: Build Check Ltd

Founded in 2004 by partners David McKenna and Richard Bate, Build Check Ltd is dedicated to enhancing the construction industry by ensuring energy-efficient and sustainable building practices. The company focuses on providing innovative solutions for building regulation compliance testing and product certification.

Located in High Wycombe, Buckinghamshire, Build Check boasts a team of UKAS accredited specialists who offer both on-site and laboratory-based testing services to the construction and fenestration sectors. As part of the acquisition, McKenna and Bate will remain in their current roles, reporting to Brian Shannon, Managing Director of Building Envelope Technologies (BET).

Industry Overview in the UK

The UK construction industry is marked by a growing emphasis on sustainability and energy efficiency. With increasing government regulations and public interest in environmentally friendly practices, companies are under pressure to adhere to stringent building standards and certifications. The Building Regulations Act of 2010 has further solidified the significance of compliance testing within the sector.

As a highly fragmented market, the testing, inspection, and certification (TICC) sector faces numerous opportunities for consolidation. With the rise of sustainable construction practices, the demand for reliable and accredited testing services is escalating. This trend is particularly evident in the fenestration industry, which is expanding rapidly in response to changing consumer preferences and regulatory requirements.

The UK also presents a robust platform for growth, reinforced by a skilled workforce and advances in technology. The government's commitment to enhancing infrastructure and housing projects contributes to a favorable economic environment for construction-related businesses.

Rationale Behind the Deal

This acquisition aims to accelerate the growth trajectory for BET by incorporating Build Check's extensive service offerings and established client base. By integrating Build Check's UKAS accredited services, BET can enhance its overall portfolio and fulfill its ambitious expansion plans in both Ireland and the UK.

With the acquisition, Phenna Group reinforces its commitment to the TICC sector, promoting innovation and competence within its subsidiary companies. The coupling of expertise and resources is expected to yield synergies that will further improve operational efficiency and profitability.

Investor Profile: Phenna Group

Phenna Group, headquartered in Nottingham, is recognized for its strategic buy-and-build approach within the TICC sector. The group is committed to identifying and nurturing high-potential acquisitions that can contribute to its overarching growth strategy.

Led by Group CEO Paul Barry, Phenna Group possesses extensive knowledge and experience in the market, providing meaningful support to portfolio companies like BET. The group's focus on integrating expert talent and resources ensures that they remain competitive in a rapidly evolving industry landscape.

View of Dealert

This acquisition of Build Check Ltd by Building Envelope Technologies is a promising investment opportunity. The combination of BET's growth ambitions and Build Check's established reputation in compliance testing creates a strong synergy that can drive both revenue and market share.

The growing focus on sustainability in the construction sector aligns perfectly with Build Check’s mission, enhancing the attractiveness of the investment. Furthermore, the retention of co-founders David McKenna and Richard Bate ensures continuity in leadership and expertise, which is vital during the integration process.

Overall, this strategic acquisition resonates with the trends in the construction industry, projected to foster growth both in the UK and Ireland. The ongoing commitment from Phenna Group to support its subsidiary's development also adds a layer of assurance for stakeholders regarding long-term value creation.

View Original Article