A substantial six-figure loan from the Development Bank of Wales has helped Alexander Sage and Carl Adams to complete the management buy-out of Motomec Aberdare Limited allowing them to take over the ownership and management of the Aberdare based business.
Motomec was established by Eddie Hawkins in 1987 and is now one of the largest independent garages in Aberdare. As a successful motor vehicle service and repair workshop with a customer base that includes private individuals and corporate fleets, Motomec has three work stations, an MOT station and parking for around 20 vehicles on site. The company also has technicians who are qualified to carry out repairs and servicing to electric and hybrid vehicles.
27 year old Alexander Sage said: “Eddie has built the business from the ground up getting it to where it is today and where it continues to deliver services at the highest possible standard.
“We’ve been increasingly running the business over the last year as Eddie has prepared for retirement so we’ve had plenty of support to make the transition from employees to owners but as young entrepreneurs, there is still a lot to take on. That’s why we are so grateful to the Development Bank for their help – their solutions focussed approach has enabled us to take advantage of this great opportunity to take the business forward and focus on the future of the business. Eddie has given us a fantastic opportunity and hope that he enjoys his well-deserved retirement.”
Sally Phillips is an Investment Executive with the Development Bank of Wales. She said: “Motomec is a long-standing and profitable business that has been servicing and repairing vehicles in the community of Aberdare for 36 years. With a strong reputation, the small team is proud of their work and committed to securing the long-term success of the business.
“Here at the Development Bank of Wales, we’re passionate about working with young people to help them realise their business ambitions. There is plenty of support available for young entrepreneurs in Wales, from business advice and workshops to loans and grant funding for start-ups, acquisitions and management buy-outs. We’re pleased that we’ve been able to help Alexander and Carl to fund their management-buy out and help them on their journey.”
The funding for the management buy-out came from the £204 million Wales Business Fund which is financed by the European Regional Development Fund and the Welsh Government. Loans, mezzanine finance, and equity investments are available with terms ranging from one to seven years for small and medium-sized businesses (those with fewer than 250 employees) based in Wales, or willing to relocate to Wales.
