Moore Kingston Smith advises Stepping Stones Resettlement Unit on sale to Cygnet Healthcare Limited

Moore Kingston Smith has advised the shareholders of Stepping Stones Resettlement Unit Group, a specialist care provider for individuals with learning disabilities, on its sale to Cygnet Healthcare Limited, a prominent health and social care provider with operations across the UK.

Stepping Stones Resettlement Unit has provided care for individuals with learning disabilities and mental health needs since its establishment as a family-operated organisation in 1961.

Cygnet Healthcare, established in 1988, is headquartered in London. Since its inception, Cygnet has developed a comprehensive range of health and social care services for young people and adults with mental health needs, brain injuries, eating disorders, autism, learning disabilities and those requiring elderly care.

This acquisition represents a significant milestone in Cygnet’s commitment to expanding its person-centred care provision, integrating Stepping Stones’ experienced team and ensuring seamless continuity of care for residents and their families.

Moore Kingston Smith provided the shareholders with fully integrated corporate finance and M&A tax advisory support on the transaction. The corporate finance team led by Matt McRae, Director, and Holly Taylor, Manager, provided sell-side deal advisory services.

This involved negotiating the working capital position and advising on various aspects of the share purchase agreement, including the transaction completion mechanism.

Mark Fielden, Partner, and Sam Talbot, Manager, from the M&A tax team, provided sell-side M&A advice to the shareholders, including due diligence support, advice on shareholder tax liabilities, negotiation of tax assets and liabilities and tax review of legal documents.

Moore Kingston Smith’s relationship with Stepping Stones began in 2006, coinciding with the retirement of the organisation’s founder and an MBO. Since then, Moore Kingston Smith has provided Stepping Stones with audit, tax and compliance services.

Michelle Evans, shareholder and Finance Director, commented: “We are delighted to have sold the homes to such an established and reputable provider as Cygnet Social Care. We wish the staffing team, families and our residents all the very best and thank them for being on such a memorable journey with us.”

“Moore Kingston Smith has been a fundamental part of our journey; firstly in 2006 with the MBO, then throughout the years with their expert advice, and now in helping us complete the exit of the business. Their dedication, expertise and commitment to helping us achieve our goals have been crucial to our success and expansion over the years.”

Matt McRae, Corporate Finance Director, concluded: “We are pleased to have supported the Stepping Stones shareholders through the process of this successful transaction. We have thoroughly enjoyed supporting the company over the years and look forward to seeing the business continuing to thrive under new ownership.”