Case Studies

Case Study: Davies

The Company:

Davies Group acts as an intermediary between insurers and policy holders in claims processes, assessing the scale of losses and arranging settlements. Its customers include leading insurers, brokers and underwriters operating in the UK insurance market.

Added Value:

  • LDC recognised a significant opportunity to grow Davies Group through operational improvement, LDC backed a £27m MBO in 2008, investing £8.6m for a majority stake which allowed a number of the business’ partners to release the value of their shares
  • LDC worked with the management team to implement a professionalisation of the business, introducing a traditional corporate management structure to replace its previous partnership framework
  • LDC helped to strengthen its senior team with the appointment of a CEO and Finance Director, which dramatically improved the quality of financial reporting and decision making across the business
  • We also worked with the team to introduce more efficient IT systems and administration processes across the business' regional offices, increasing the speed and quality of its claims management services

Outcomes:

  • Davies’s grew operating profit (EBIT) from approximately £3.5m (2008) to £8.4m (2011), and created 200 jobs during the investment period
  • In 2011, LDC sold its stake in Davies Group through a management-led SBO backed by Electra Partners
"LDC was a very supportive investment partner and played a key role in helping to drive operational improvement and our financial performance. “They provided the right mix of challenge and support, and we greatly appreciate the positive impact they've had on the business.“
Charles Crawford, CEO, Davies Group

Highlights:

  • EBIT increased from £3.5m to £8.4m
  • Created 200 jobs
  • Strengthened management team
  • More efficient admin processes