A Greater Manchester-based invoice finance firm has expanded with a double swoop in a multimillion-pound deal.
WeDo Invoice Finance has acquired Colchester-based sister companies Alexanders Discount and Corporate Commercial Collections.
It comes after the Essex firms ran into financial difficulties, with FRP Advisory appointed as administrators in June.
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The acquired businesses, which provide funding to companies across the UK in sectors including recruitment, construction and manufacturing, have been absorbed into WeDo Invoice Finance.
The deal increases Oldham-headquartered WeDo’s presence in the south.
WeDo Invoice Finance is part of the WeDo group of companies founded by directors Chris Robinson and Mark Lindsay.
Mr Robinson said the market for invoice finance was growing as established companies in sectors such as recruitment and construction bounce back from the effects of the pandemic and see demand picking up strongly.
He also said the pandemic has inspired many people to start their own ventures, which require financial support to help them grow.
He added: “We are an ambitious and expanding company and, as part of our growth strategy, we have been seeking to increase our presence in the south.
“The businesses we have acquired have good management teams and lots of synergies with our existing operations, so we are thrilled to have been able to take advantage of the opportunity to buy them.
“Taylors provided excellent and proactive support throughout the process, being available at all times to help us push through the deal.
“It was important to get the transaction done quickly to alleviate any uncertainty among the client base of the businesses as a result of them being placed in administration. Thankfully, we have been able to reassure them that we are there for them to support their growth objectives.”
The group began trading in 2019 with around five staff and now has a workforce of over 30 based at offices in Oldham, Sheffield, Swindon and now Colchester. It other divisions include WeDo Trade Finance, WeDo HR and WeDo Recruitment Investments.
A team at north west law firm Taylors Solicitors advised WeDo Invoice Finance on its acquisition, led by partners Andrew Livesey and Stuart Beatson.
Mr Livesey, head of Taylors’ Manchester office, said: “We are delighted to have been able to assist WeDo Invoice Finance in acquiring the businesses previously carried on by Alexanders Discount Limited and Corporate Commercial Collections Limited.
“The transfer of a ‘live’ finance business gave rise to a number of interesting technical challenges which had to be overcome as existing client positions and the associated agreements were migrated over to WeDo.
“We have been very pleased to have been able to work with WeDo since its launch in 2019. Mark, Chris and the entire team at WeDo are great to work with as their business goes from strength to strength.”
