A seven-figure equity investment from the Development Bank of Wales has supported the management buy-out (MBO) of Cardiff-based DRAC Consulting, securing the future of the building services engineering consultancy, protecting 20 jobs, including three apprenticeships, and ensuring continuity for long-standing clients across Wales.
The investment from the Development Bank’s Wales Business Succession Fund has enabled Lewis Doherty to take over as Managing Director from the company’s founding directors, marking the next chapter in a carefully planned transition, which has a family link.
Lewis, who joined the business in 2015 as a junior electrical engineer, is the son of co-founder Carl Bassett and has spent several years being prepared for leadership of the company.
Founded in 2009, DRAC Consulting provides mechanical, electrical and public health (MEP) engineering consultancy services, advising, designing and supervising building services across a wide range of public and private sector construction projects. The business works with clients including local authorities, housing associations, health boards and property developers.
As part of the process of the MBO, Lewis Doherty worked with JCP Solicitors along with Tanya Wilson and Chris Thomas of SME Finance Partners to structure the transaction. Lewis will be supported in his new role by Chris Thomas, who joins the business as Non-Executive Chair, bringing additional financial leadership and experience to support the company’s next phase of development.
The transaction has been structured to ensure a smooth and phased transition, with existing directors Carl Bassett and Russell Williams remaining closely to provide continuity for staff and clients.
DRAC Consulting currently has three apprentices through the University of South Wales’s Network75 scheme, which provides an opportunity for students to undertake a recognised degree qualification whilst applying their knowledge directly in the workplace. Two apprentices are focused on electrical engineering; one is dedicated to mechanical engineering.
Lewis Doherty, Managing Director of DRAC Consulting, said:
“DRAC is a business that has been built from the ground up, and it means a great deal to be trusted with taking it forward. This transition has always been about continuity – for our clients, our staff and our partners. I simply want to build steadily on what’s already a strong and well-respected business.
“My focus is on sustainable, measured growth, developing our people and continuing to deliver the high-quality service our clients rely on. The team at the Development Bank of Wales was excellent to work with throughout the process; they were supportive, professional and genuinely committed to helping us get this right for the long term.”
Investment Executive John Babalola and Assistant Investment Executive Conrad Price worked on this deal for the Development Bank of Wales. John Babalola, said:
“This was an excellent opportunity to support a business succession that has been carefully planned over a number of years. DRAC Consulting is a long-established and profitable engineering consultancy with strong client relationships and a reliable pipeline of work through key public sector frameworks.
“Lewis has demonstrated the capability, ambition and leadership required to take the business forward, while the continued involvement of the founding directors provides reassurance for staff and customers alike. We’re very pleased to support a transaction that protects jobs, maintains continuity and enables the next generation to lead a Welsh business with confidence.”
