WHY THIS MATTERS
Acquisitions maintain the scale and effectiveness of the operating model. In addition, they create a source of value enhancement and sustain the cash generation potential of the Group.
HOW WE DELIVER
Identify potential deals through an effective network of advisers and industry associates.
We work co-operatively with regulators and assess deals by applying well established criteria which consider the impact on cash generation and embedded value under best estimate and stressed scenarios.
The financial benefits are viewed in the context of the impact the deal will have on the enlarged Group’s risk profile.
Transaction risk is minimised through stringent risk-based due diligence procedures and the senior management team’s acquisition experience and track record.
We fund deals with debt, equity or cash depending on the size and cash flows of each deal.
Chesnara has made five acquisitions since the company was established in 2004; three in the UK, one in Sweden and the most recent in the Netherlands in 2015. The subsequent embedded value growth has been the primary driver of the Group’s total economic value increase from £126m in 2004 to £602.6m at the end of 2016. The acquisitions have also made a significant contribution to the Group’s cash generation thereby funding our dividend strategy. Importantly, no deals have resulted in any form of detrimental customer outcomes and customers benefit from the financial stability the Chesnara Group offers.