Mergers & Acquisitions
Organic Growth and via Strategic Acquisitions
As well as organic growth generally we have now placed a greater emphasis on mergers and acquisitions. Previously informally assisting clients to either find acquisition targets as well as those wishing to "exit" as part of an (sometimes) unplanned succession. This was done holistically as an extension to our commercial funding activity, and with the greatest of discretion (in a strictly non-advisory capacity) - merely facilitating introductions. In recent years we have made a policy change, investing time and effort into better understanding the nuances of the M&A market but are now exclusively seeking to make strategic acquisitions for our own account - in Sectors that we have some experience of.
SectorsFinancial Service Firms (IFAs, Insurance, Mortgage Brokers etc.); Manufacturing/Engineering Businesses; and, Owner/Managers of under utilised Real Estate Assets (such as Hotels, Care Homes, Offices etc.), where the spare capacity can be repurposed - within the Midlands, UK initially? In the latter case, may consider collaboration/JVs with owner/managers of these assets and/or seasoned small and medium-sized developers, especially within Social Housing for Key Workers - utilising our network of specialist funding sources?
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CriteriaStrong Second Tier Management and Support Staff must be in place. £1M-£10M Turnover (£500K-£5M Minimum), 10-15 years minimum trading history, 15%-25% minimum nett margin and Free Cash Flow/Unadjusted EBITDA £500K (£250K Minimum). No distressed deals. Will not agree to a Day 1 payment of 100% - why? Because we have decades of business experience and know that we shall be buying some else's problems that may only come to light overtime? Instalments shall be released as the acquired business continues to perform as planned and/or stated/disclosed by the seller.
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StrategyThe objective is to generally Buy, Build, Hold and to eventually transfer to an Employee Ownership Trust and complementary structures.
What is in it for the selling Founder - a bespoke "package" that includes a "quasi-pension". We are discerning as to which opportunity that we consider but are always open to having an informal conversation with Owner/Managers whose firms meet our criteria: Kip - 07508 402 900 - [email protected] - [email protected]. We have based our business on strong ethics and integrity. We shall not make an artificially high offer price, and then chip away at what has been agreed nor subsequently alter the terms in order to "squeeze" more out of the potential deal. Both price and terms should be genuinely "fair" to all parties - you need to be happy and so do we. |