Large manufacturing business where the owner wanted to de-risk.
This particular business was growing fast, and the majority shareholder felt that inward investment would give the financial resources and the stability needed for a successful continued expansion.
They were approached by an external purchaser, who offered £5 million for a 51% share in the business.
We persuaded the business owner that he was probably not achieving the business true value and convinced him to put it on the open market.
With the advantage of proper marketing, they were multiple interested parties, not just one. As a result, £12 million was paid for the 51% stake which was a significant improvement over the initial offer.
This not only secured the future of the business, but over the next few years allowed the managing director to retire and explore other business interests.
Successfully selling a loss-making business
This business was based on the landscaping maintenance industry.
When we started working with the business, unfortunately it was sustaining heavy losses. The business owner was near retirement age and was really stressed out about running the business. Her son had unsuccessfully tried to take over running the business, so there were no succession plans in place.
We were able to help the business owner sell the business to a purchaser, who appreciated the strategic advantage of both the location and the types of contracts the business had.
A deal in excess of £500,000 plus very generous rental arrangements which allowed the director to retire and destress from the pressures of running a loss-making business.
Sale of a father and sons’ business where the sons no longer wished to take-over the long-term running of the business
With this particular business, it was in a fairly niche industry, which we had been working with over the last 7 years. Not only doing their accounts, but business advisory, helping them improve the average spend and profitability which had helped them improve there year on year results.
We were able to create a nationwide database of prospective purchasers and contacted multiple potential buyers via calls, letters, and emails, all capable of acquiring the business.
Eventually a suitable buyer was found, and we were able to negotiate the price up from £3 million to £3.5 million. This coupled with a good rental deal on the business premises allowed the father to retire but at the same the sons who were only in their late 30’s, gave them an exit from the industry with sufficient financial resources to start a business in a new sector.