On Behalf Of RSM - Business For Sale

Project Budd

An exciting opportunity to purchase the trade and assets of a Company that has developed a suite of electric motors and power controllers

The opportunity

• Emission legislation is driving change; forcing the move to be green.
• Vehicle manufacturers, on and off road, need to move away from existing power sources (internal combustion engines and hydraulic systems).
• Both still have to meet performance and cost targets.
• Global car makers are investing US$90bn in developing electric vehicles for on-road use. Source: Thomson Reuters
• Equally large industrial vehicle market, which has a very different set of needs, to a greater extent has been ignored.
• Off-road engine market is forecast to grow to US$ 51.43bn by 2026. Source: Reports and Data

The current business

• In response the Company has focused on developing high efficiency drive systems that can deliver high torque at low speed e.g. a tractor ploughing.
• Advanced techniques in magnetics have allowed the Company to remove approximately 50% of the expensive rare earth materials to achieve competitive pricing.
• Work done to date has addressable markets beyond off road and a pipeline of potential IP.
• The Company’s technology lowers costs to allow for the delivery of a true, green substitute for the internal combustion engine.
• It enables customers to meet regulatory timelines without impacting profits.
• This technology has generated significant international interest, and the Company has worked extensively with market leaders in specialist areas including turf equipment, agriculture and construction.
• Prototype power controllers and small motor are already in place.
• There are also designs for trailer plant with first demonstrator being of a solar powered lighting tower.

Financial Information

• £19.4m invested already with plans in place to take business forward
• Company retains 16 staff including a core team of highly skilled engineers.
• 3 series of patents granted internationally, 2 filed awaiting examination, 2 more drafted
• There are plans to have working products in the market within 12-18 months

Anticipated timeline

• Time is of the essence and if you are interested you should contact us as soon as possible.
• The deadline for initial expressions of interest is 5:00pm on 25th November 2019.
• Interested parties will be asked to sign a non-disclosure agreement prior to being provided with an Information Memorandum and additional salient information.
• Offers will be invited from the interested parties thereafter and a deal must be concluded by 29th November 2019.
• If you would like further information, please contact Nick Edwards or Adam Herman in the first instance:

Nick Edwards | nick.edwards@rsmuk.com

Adam Herman | adam.herman@rsmuk.com

+44 (0) 1908 687 800

Request for Expression of Interest Document (“the document”) - Important Notice

The information is communicated as a general guide to interested parties to assist them in deciding whether or not to investigate the above opportunity

(“Proposed Transaction”). It is not intended to form the basis of any contract or transaction. Recipients must make their own independent assessment of the opportunity and should obtain independent professional advice. This document does not constitute an offer or invitation in respect of the Proposed Transaction or any other sale or purchase of securities, or any of the business or assets, described in this document.

A recipient cannot derive any legal claim from receipt of this Document to acquire a participating interest in the Company or to conduct negotiations with the Company or RSM Restructuring Advisory LLP, or other parties involved in the transaction with regard to such acquisition.

Status of the issuer

RSM Restructuring Advisory LLP has been appointed by the directors of Project Budd (“the Company”) (“the Director”) to act as sole advisors in connection with the potential sale of the Company. The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. RSM Restructuring Advisory LLP is acting for the Company in connection with the arrangements proposed in this Document and no one else. RSM Restructuring Advisory LLP will not be responsible to anyone other than the Company for providing the protection afforded to clients or customers of RSM Restructuring Advisory LLP or for providing advice in relation to the proposal.

Status of information

Neither RSM Restructuring Advisory LLP, nor their agents, the Director, or the Company have reviewed or verified the contents of this Document. No representation or warranty is given or is to be implied by or on behalf of the Company, its Director or employees or any other person as to the accuracy or completeness of the information or opinions contained herein. Accordingly, none of the Company, its Director, RSM Restructuring Advisory LLP shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any information or opinions contained herein or in any other communication in connection with such proposed investment. In particular, they shall not be liable for the statements, projections or other information on the Company, its strategies, economic situation, market and competitive situations, regulatory environment etc. contained in the Document. Any Recipient who wishes to pursue an interest in the Company must complete their own due diligence and other enquiries as they think fit but, in any event, must not rely on the contents of this Document which is being provided for information purposes only.

This Document and the information contained herein are delivered as of the date set forth on the front cover hereof, and there shall be no implication that there has been no change in the affairs of the Company or other matters since such date. The statements contained in this Document and the facts on which they are based may be altered without prior notice. The Company and RSM Restructuring Advisory LLP assume no responsibility for updating this Document or any of the information contained herein. RSM Restructuring Advisory LLP is under no obligation to provide further information and does so at its own discretion.

The recipient acknowledges and agrees that no person has, nor is held out as having, any authority to give any statement, warranty, representation, assurance or undertaking on behalf of RSM Restructuring Advisory LLP, nor their agents, the Director or the Company, in connection with the Proposed Transaction.

Confidentiality

This document has been furnished to the recipient on a confidential basis. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise other than in confidence to any professional adviser acting on their behalf without the prior written permission of RSM Restructuring Advisory LLP. No action has been taken to permit the distribution of this Document in any jurisdiction where such action is required to be taken, other than in the United Kingdom.

This document does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Recipients of this Document in jurisdictions outside the United Kingdom should inform themselves about and observe all applicable legal requirements in their jurisdictions. In particular this Document may not be distributed directly or indirectly in the united States of America or in its territories or possessions or areas subject to its jurisdiction or any political sub-division thereof or to any national, citizen or resident thereof or any person who is normally resident therein (including the estate of any such person and any corporation, partnership or other entity created or organised therein).

By accepting the Document, you agree to be bound by the foregoing limitations.

RSM Restructuring Advisory LLP is under no obligation to provide further information and does so at its own discretion. RSM Restructuring Advisory LLP is a limited liability partnership registered in England and Wales, with registered number OC325349.