Beth Warner, associate director at FRP Corporate Finance, says aerospace and defence component maker HT Servo needed to be well prepared to attract the right buyer.
What was the deal?
Advising the owners of Worthing-based HT Servo – husband and wife David and Thu Hong Baillie – on the sale of their business to Swedish-listed industrial group Teqnion. HT is a distributor of high-precision specialist motion-control components to the aerospace and defence sectors. The Baillies took control of the business in 2006, through an MBO.
How were you introduced to the deal?
I know the owners’ daughter, who is a corporate lawyer, well. She wanted someone she trusted, who would look after her parents, and so introduced us. HT weren’t on our radar at FRP. We first spoke to David and Thu Hong in February 2025, went to market in April, and completed in September – it was a very efficient process.
What did the process involve?
We approached private equity and trade, both domestic and international, and there was a lot of interest. Defence is a particularly hot sector at the moment, and PE is showing increased interest, but with no management team to back in a buyout, any PE deal would have likely been a bolt-on. Teqnion was a clear front-runner from early on. While other interested parties focused on the risks of a small team (of five) running a project-based niche business, Teqnion really appreciated the value in the business’s growth prospects.
Who were the advisers?
Our team at FRP Corporate Finance was headed up by partner Adrian Alexander. We provided lead advisory services to HT, and a team from DMH Stallard, led by corporate partner Mark Diamond, provided legal advice. THL Accountancy, HT Servo’s Worthing-based accountants, helped with due diligence and tax. Overall, due diligence was straightforward because HT is run cleanly and efficiently. Teqnion did their own due diligence and legals, which was a new one for us.
How was the deal structured?
The deal value was not disclosed. Given the small team, we had to get creative with deal structure to ensure they were incentivised post-acquisition. As expected, there is an earnout period to reflect this, during which they will focus on building out the team. We worked on the SPA with DMH Stallard.
What is the strategy for Teqnion?
Teqnion’s businesses are generally run independently, but some could help HT expand internationally and into adjacent sectors, as HT currently trades mostly in the UK. But with investment from Teqnion they can strengthen the team to enable expansion. Teqnion doesn’t flip companies in three to five years; they want ‘cockroach’ businesses that generate cash – and HT does that. Investment from Teqnion could help HT strengthen the team to enable expansion.
What were the challenges?
The most important thing was finding the right buyer. We had to highlight the quality of long-term earnings. HT is a small, close-knit team and so cultural fit mattered as much as price. We needed NSIA clearance, because defence is obviously a sensitive sector. Certain buyers would not have been possible. We exchanged pending the receipt of the NSIA clearance, which took longer than expected.
Were any lessons learnt?
The sellers’ preparation work reminded me how much of a game-changer good prep is. Also having the right acquirer makes it a smoother process. Teqnion was a great buyer – very pragmatic and practical.
The CV
Beth Warner was promoted to associate director at FRP Corporate Finance in Brighton in May 2026. Prior to joining the firm in 2021, she spent three years at Orange Smarty, and five years as a director at Built On Purpose. Before that she spent six years at KPMG, working in restructuring.
Recent deals
- Acted for the vendors of CountyClean, which was sold to Ipsum Utilities in January 2026, for an undisclosed sum
- Acted for the vendors of CK Facilities Management, on its sale to Clece Care Services in January 2025, for an undisclosed sum
- Advised the vendors of All Pallets on its sale to Rotom Europe in September 2023. The value was not disclosed