Young Entrepreneurs Complete Management Buy-Out of Motomec Aberdare Ltd

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Development Bank of Wales , 14th March 2023

A substantial six-figure loan from the Development Bank of Wales has helped Alexander Sage and Carl Adams to complete the management buy-out of Motomec Aberdare Limited allowing them to take over the ownership and management of the Aberdare based business.

Motomec was established by Eddie Hawkins in 1987 and is now one of the largest independent garages in Aberdare. As a successful motor vehicle service and repair workshop with a customer base that includes private individuals and corporate fleets, Motomec has three work stations, an MOT station and parking for around 20 vehicles on site. The company also has technicians who are qualified to carry out repairs and servicing to electric and hybrid vehicles.

Sally Phillips (Development Bank of Wales) with Alexander Sage and Carl Adams of Motomec

27 year old Alexander Sage said:

“Eddie has built the business from the ground up getting it to where it is today and where it continues to deliver services at the highest possible standard.

“We’ve been increasingly running the business over the last year as Eddie has prepared for retirement so we’ve had plenty of support to make the transition from employees to owners but as young entrepreneurs, there is still a lot to take on. That’s why we are so grateful to the Development Bank for their help – their solutions focussed approach has enabled us to take advantage of this great opportunity to take the business forward and focus on the future of the business. Eddie has given us a fantastic opportunity and hope that he enjoys his well-deserved retirement.”

Sally Phillips is an Investment Executive with the Development Bank of Wales. She said:

“Motomec is a long-standing and profitable business that has been servicing and repairing vehicles in the community of Aberdare for 36 years. With a strong reputation, the small team is proud of their work and committed to securing the long-term success of the business.

“Here at the Development Bank of Wales, we’re passionate about working with young people to help them realise their business ambitions. There is plenty of support available for young entrepreneurs in Wales, from business advice and workshops to loans and grant funding for start-ups, acquisitions and management buy-outs. We’re pleased that we’ve been able to help Alexander and Carl to fund their management-buy out and help them on their journey.”

The funding for the management buy-out came from the £204 million Wales Business Fund which is financed by the European Regional Development Fund and the Welsh Government. Loans, mezzanine finance, and equity investments are available with terms ranging from one to seven years for small and medium-sized businesses (those with fewer than 250 employees) based in Wales, or willing to relocate to Wales.

Mae benthyciad chwe ffigur sylweddol gan Fanc Datblygu Cymru wedi helpu Alexander Sage a Carl Adams i gwblhau allbryniant rheolwyr o Motomec Aberdare Ltd gan ganiatáu iddynt gymryd drosodd perchnogaeth a rheolaeth y busnes yn Aberdâr.

Sefydlwyd Motomec gan Eddie Hawkins yn 1987 ac mae bellach yn un o garejis annibynnol mwyaf Aberdâr. Fel gweithdy gwasanaethu a thrwsio cerbydau modur llwyddiannus gyda sylfaen cwsmeriaid sy'n cynnwys unigolion preifat a fflydoedd corfforaethol, mae gan Motomec dair gorsaf waith, gorsaf MOT a pharcio ar gyfer tua 20 o gerbydau ar y safle. Mae gan y cwmni hefyd dechnegwyr sy'n gymwys i wneud gwaith atgyweirio a gwasanaethu cerbydau trydan a hybrid.

Dywedodd Alexander Sage, sy’n 27 oed:

“Mae Eddie wedi adeiladu’r busnes o’r gwaelod i fyny a dod â’r busnes i lle mae o heddiw, lle mae’n parhau i ddarparu gwasanaethau o’r safon uchaf posibl.

“Rydyn ni wedi bod yn rhedeg y busnes yn gynyddol dros y flwyddyn ddiwethaf gan fod Eddie wedi paratoi ar gyfer ei ymddeoliad felly rydym wedi cael digon o gefnogaeth i bontio o fod yn weithwyr i berchnogion ond fel mentergarwyr ifanc, mae llawer i'w wneud o hyd. Dyna pam yr ydym mor ddiolchgar i'r Banc Datblygu am eu cymorth - mae eu dull gweithredu sy'n canolbwyntio ar atebion wedi ein galluogi i fanteisio ar y cyfle gwych hwn i symud y busnes yn ei flaen a chanolbwyntio ar ddyfodol y busnes. Mae Eddie wedi rhoi cyfle gwych i ni ac yn gobeithio y bydd yn mwynhau ei ymddeoliad haeddiannol.”

Mae Sally Phillips yn Swyddog Buddsoddi gyda Banc Datblygu Cymru. Meddai:

“Mae Motomec yn fusnes proffidiol hirsefydlog sydd wedi bod yn gwasanaethu a thrwsio cerbydau yng nghymuned Aberdâr ers 36 mlynedd. Gydag enw da, mae'r tîm bach yn falch o'u gwaith ac wedi ymrwymo i sicrhau llwyddiant hirdymor y busnes.

“Yma ym Manc Datblygu Cymru, rydym yn frwd dros weithio gyda phobl ifanc i'w helpu i wireddu eu huchelgeisiau busnes. Mae digon o gymorth ar gael i fentergarwyr ifanc yng Nghymru, o gyngor busnes a gweithdai i fenthyciadau a chyllid grant ar gyfer busnesau newydd, caffael ac allbryniannau rheolwyr. Rydym yn falch ein bod wedi gallu helpu Alexander a Carl i ariannu eu allbryniant rheoli a’u helpu ar eu taith.”

Daeth y cyllid ar gyfer y pryniant gan reolwyr o Gronfa Busnes Cymru gwerth £204 miliwn a ariennir gan Gronfa Datblygu Rhanbarthol Ewrop a Llywodraeth Cymru. Mae benthyciadau, cyllid mesanîn, a buddsoddiadau ecwiti ar gael gyda thymhorau’n amrywio o un i saith mlynedd ar gyfer busnesau bach a chanolig (y rhai sydd â llai na 250 o weithwyr) sydd wedi’u lleoli yng Nghymru, neu sy’n barod i adleoli i Gymru.