In March 2023, Sayvol, a leading water treatment and testing company, became part of the Phenna Group.
This acquisition marked a significant turning point in Sayvol’s growth trajectory and positioned the company for long-term success. With Les White, Sayvol’s Director, steering the transition, the acquisition has proven to be a seamless integration.
In this case study we explore Sayvol’s acquisition journey, post-acquisition benefits, and the outlook for future growth.
About Sayvol
With a rich history dating back to 1989, Sayvol is a trusted name in the water treatment and testing industry. Over the years, it has evolved to meet the changing needs of its clients, expanding into environmental and building services. Their experience and expertise make us a reliable partner for both existing and new clients.
In 2002, Sayvol Environmental & Building Services Limited was created to dedicate an experienced team to these ever-growing needs. They have offices in Kettering near Northampton and Canary Wharf in London, which ensures they can provide National coverage.
Services Include:
Water Treatment and Testing Services
Water Hygiene Monitoring and Sampling
Legionella and Water Risk Assessments and Consultancy
Tank Replacements and Refurbishment
Equipment Installation and Commissioning
Air Hygiene Surveys
The Acquisition Journey
What attracted Sayvol to the Phenna Group?
Sayvol was drawn to Phenna’s acquisition model, which allowed for operational autonomy and minimal disruption to its employees, while benefitting from Phenna’s scale and strong support infrastructure.
The Phenna Group’s approach, which emphasised personal relationships while maintaining business operations and minimum impact on employees, resonated strongly with Sayvol’s leadership.
How did the acquisition discussions begin?
I agreed to accelerate discussions after meeting Paul Barry, the Founder and Executive Chairman. They introduced Phenna’s acquisition model, which focuses on independent post-acquisition business operations.
Why was this acquisition the right move for Sayvol?
By 2023, Sayvol was at a strategic crossroads. The company had considered expanding through the acquisition of a smaller company, but the financial risks associated with raising capital presented challenges. Additionally, the water hygiene industry was experiencing a wave of acquisitions, with one main competitor dominating the market.
Phenna Group offered an alternative that would alleviate financial risk and provide financial security for the company and its employees. This acquisition became an ideal solution for Les White’s business partner, who was nearing retirement and managing personal challenges.
Phenna’s model enabled Sayvol to grow without incurring debt, offering stability for employees and protecting the company’s legacy.
Were there any challenges during the acquisition process?
While the acquisition process involved extensive paperwork due to due diligence, Les noted that it was smooth and pain-free. Both parties worked collaboratively to finalise the transaction within approximately six months.
Alignment of Values and Vision
One of the most compelling factors favouring the acquisition was the alignment between Sayvol’s operational goals and Phenna Group’s values. The group’s commitment to maintaining business and not imposing structural changes was essential. Sayvol’s employees experienced minimal changes, which helped dispel initial concerns about potential shifts in company culture.
Post-Acquisition Benefits and Changes
What immediate changes occurred after the acquisition?
Following the acquisition, operational changes were minimal. Sayvol had to provide monthly board reports in the standard Phenna format, alongside a monthly discussion about the business and where Phenna could provide support, otherwise, the day-to-day running of the business remained consistent with pre-acquisition operations.
How did the acquisition impact Sayvol’s market position?
The acquisition raised some initial questions from customers, particularly about potential competition with other Phenna-owned water companies. However, Les and the Sayvol team quickly addressed these, and clients understood that Sayvol would continue to operate independently, with separate profit and loss accounts. As a result, customer confidence
remained intact.
What specific resources from Phenna Group benefited Sayvol?
Since joining Phenna, Sayvol has benefited from various support services, including assistance with accounts, finance, HR, and legal matters, plus providing the necessary capital investments to support its ambitious growth plans. In addition, the Phenna group of companies provided an excellent opportunity to develop business and personal relationships with other founders, helping each other out when needed.
Expansion and New Opportunities
Sayvol is now better positioned for growth. They also expect that the new state-of-the-art laboratory that CTS (a company within the Phenna Infrastructure Division) is set to open in late 2024, where they will send all their water samples, will enhance Sayvol’s service delivery and enable greater innovation in its offerings.
Synergies and Efficiencies
Since becoming part of Phenna Group, Sayvol has witnessed a significant boost in its operations and resources. Some of the advantages include:
- The utilisation of Phenna’s group insurance, which offers superior coverage at a reduced cost, improves the profitability of the business and, thus, the value of Les’s remaining equity.
- The integration of iHasco Training as a complimentary resource provided by Phenna Group has been particularly beneficial. Sayvol’s staff have actively engaged in various training sessions, finding them both engaging and practical.
- Sayvol has adopted Phenna’s Employee Handbook, with the HR team providing support in areas such as employee contracts and complex issues like TUPE transfers.
- The acquisition has also improved Sayvol’s financial reporting, adopting best practices from Phenna Group, and Phenna also manages Sayvol’s taxes, reducing administrative burdens.
- The legal team was instrumental in securing Sayvol’s largest-ever contract by reviewing and negotiating the terms and conditions.
- Sayvol has delivered Legionella Water risk assessments and control programs to comply with L8 to businesses throughout the Phenna Group, this work was previously delivered by competitors.
- While their technological advancement was boosted through Cyber Essentials certification, facilitated by IASME (another Phenna Group company).
Success and Future Outlook
Milestones Achieved Since the Acquisition
Since joining the Phenna Group, Sayvol has achieved impressive milestones, including reaching an annual turnover of £10 million for the first time. Additionally, the company set records with over £1 million in turnover in a single month and recorded the highest sales figures in its history. Sayvol’s team has also expanded, growing to over 70 employees, all while maintaining financial stability and achieving organic growth.
Client Feedback
Sayvol is a service-based company, and while client feedback is often limited, the feedback received post-acquisition has been positive. It focuses on successful project completion and excellent team performance on-site, a testament to the company’s commitment to maintaining high standards of service delivery.
Future Plans
Looking ahead, Sayvol’s growth trajectory remains strong. The company’s next goal is to reach £15 million in turnover and expand
its workforce to over 100 employees. The support the Phenna Group provides will be instrumental in achieving these ambitious objectives.
Sayvol also plans to leverage the new state-of-the-art laboratory that CTS is opening to enhance service delivery and enable greater innovation in their offerings. These future plans and strategies demonstrate Sayvol’s commitment to growth and innovation, and the role of Phenna Group in supporting these initiatives.
Reflecting on the Acquisition Decision
Looking back on the acquisition decision, Les feels that joining the Phenna Group has been a positive step for Sayvol, offering security and
the opportunity for continued growth. For other business owners considering a similar path, he recommends exploring the benefits of joining a group like Phenna, particularly if they are seeking financial security and autonomy.
Les White
Director
Sayvol’s acquisition by the Phenna Group has been a resounding success. By maintaining operational independence, providing enhanced resources, and supporting future growth plans, Phenna has enabled Sayvol to thrive in a competitive market.
With ambitious goals on the horizon, the partnership continues to drive Sayvol towards greater success while protecting its core values and operational integrity.