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Inventures' consultancy arm in line for buy-out
17:06 08 Apr 2004
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A management buy-out (MBO) of Inventures' consultancy arm is in the
pipeline. CJ understands Inventures consultancy staff received a
letter from board members recently asking them to support an MBO.
The consultancy's future has been in question since the NHS pulled out of a deal to sell Inventures, its property and consultancy division, to Miller Ventures last month (CJ 3 March).
The consultancy division, centred in Leeds, has 250 staff and is believed to be worth £5m. It specialises in healthcare projects ranging from diagnostic and treatment centres and NHS LIFT schemes to PFI and modular construction.
More than two-thirds of its work is with the NHS. Inventures prides itself on its knowledge of the NHS, boasting that most of its staff "have an NHS
background".
Industry views on the future of the MBO are mixed. One contractor said: "They have a lot of contacts in the NHS and they understand how it operates. They get a lot of work from the NHS and I think that will continue."
But one consultant said: "They are very civil servant. A lot of their contracts are coming to an end. Can they compete in the private sector?"
Inventures' property arm will not be part of any MBO. The 1,000ha property portfolio is the jewel in Inventures' crown and is expected to be at the heart of an NHS LIFT-style low-cost housing and regeneration
programme.
But there may be a cloud on the horizon. A leading lawyer questioned the legality of the MBO. "When negotiations break down, as they did between Miller Ventures and the NHS Estates, then the reserve bidder (in this case William Pears) has to be consulted.
"Either negotiations must be re-opened with the reserve bidder or the reserve bidder must be compensated."
Industry observers speculated that the group is biding its time. One said: "Pears would be wise to wait and see. It is in a strong position if the land is used for regeneration, since it already has a track record in that business via NHS LIFT and is very familiar with Inventures' property portfolio."
Pears declined to comment.
An NHS spokesman said: "We are exploring options for the future of Inventures."
The consultancy's future has been in question since the NHS pulled out of a deal to sell Inventures, its property and consultancy division, to Miller Ventures last month (CJ 3 March).
The consultancy division, centred in Leeds, has 250 staff and is believed to be worth £5m. It specialises in healthcare projects ranging from diagnostic and treatment centres and NHS LIFT schemes to PFI and modular construction.
More than two-thirds of its work is with the NHS. Inventures prides itself on its knowledge of the NHS, boasting that most of its staff "have an NHS
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background".
Industry views on the future of the MBO are mixed. One contractor said: "They have a lot of contacts in the NHS and they understand how it operates. They get a lot of work from the NHS and I think that will continue."
But one consultant said: "They are very civil servant. A lot of their contracts are coming to an end. Can they compete in the private sector?"
Inventures' property arm will not be part of any MBO. The 1,000ha property portfolio is the jewel in Inventures' crown and is expected to be at the heart of an NHS LIFT-style low-cost housing and regeneration
programme.
But there may be a cloud on the horizon. A leading lawyer questioned the legality of the MBO. "When negotiations break down, as they did between Miller Ventures and the NHS Estates, then the reserve bidder (in this case William Pears) has to be consulted.
"Either negotiations must be re-opened with the reserve bidder or the reserve bidder must be compensated."
Industry observers speculated that the group is biding its time. One said: "Pears would be wise to wait and see. It is in a strong position if the land is used for regeneration, since it already has a track record in that business via NHS LIFT and is very familiar with Inventures' property portfolio."
Pears declined to comment.
An NHS spokesman said: "We are exploring options for the future of Inventures."
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