Retirement Sale – Cutting Edge Electronics Group
Involved in both the transport and optronics sectors, this multi-million pound group had an impressive range of own products providing support for the Department of Transport, Ministry of Defence and many private companies.
SRS recommended that the Group be marketed in two parts, by sector, and successfully went on to identify a Venture Capital Fund specialising in transportation systems, which purchased the majority of the Group, the balance being sold to an optical instruments group.
Funding & Diversifying
This family owned group, specialists in recycling paper and board, operated from a number of locations. SRS were asked to review the strategic options available in order to protect the future in this volatile marketplace, and secure funding in order to achieve the recommendations.
SRS developed a comprehensive Business Plan, and took this, on behalf of the company, to a number of specialised investors and banks, and successfully secured the funding needed to implement the recommendations, which included diversifying into plastic waste plus extending geographically the number of depots to source additional tonnage.
In addition, SRS carried out a cost reduction review to identify substantial savings and improve efficiency. For a period of time SRS produced the monthly management account, before appointing a small firm of accountants, who additionally carried out the payroll function and provided tax advice.
Retirement Sale – Electronics Sub-contractor
This sale was complicated by the long service of the key employees, which made the business difficult to relocate. In addition, the technology used, whilst adequate, required completely updating. The business was very small, and the proprietor was over 80.
SRS identified an expanding group specialising in small batch production activities needing experienced skills in small batch work. The employees were all retained, the full asking price was achieved, and investment made in new equipment and premises.
Refinancing of Specialist “Green Roofing” Company
A specialist design and installation roofing company, providing environmentally friendly roofing to new development blocks of flats, had expanded very rapidly and was offered large, prestigious new contracts, which it was finding difficult to finance. In addition, the expansion had led to shortcomings in the bookkeeping due to pressure of work.
SRS reviewed the financial structure and calculated the cash flow required to grow the business, successfully identified and approached various investors and funders, resulting in adequate funds being put in place, and recommended a new firm of accountants to install replacement software and provide monthly management accounts.
Retirement Sale – Forklift Truck Distributor
This company is a forklift truck distributorship with 2 outlets, located in the Home Counties, with exclusive distributorships for new and used trucks, both for sale and hire.
A highly targeted campaign to competitive truck distributors achieved a 10% response rate, whilst an advert placed in the Daily Telegraph also generated substantial interest. An offer of nearly 90% of the asking price, was achieved within 2 months of going to market.
Sale on health grounds – Management Information Systems
This company is a leading builder of databases, supplying other database providers plus direct customers. The company was sold due to the illness of one of the founders.
The full asking price was achieved, with no retentions plus continued employment for the other founder, to an international group.
Retirement Sale – Manufacturing
The owners of this business, which manufactures plastic airside safety products using rotational moulding techniques, wanted to sell due to their impending retirement.
Despite this being a niche sector, we sent out 15 documents to pre-qualified potential purchasers, arranged 7 meetings, and succeeded in achieving an offer within 10% of the asking price.
Sale on health grounds – Advertising Agency
This company, located in central London, is a leading Advertising Agency specialising in the charity sector. One of the key partners developed a long-term progressive illness.
We achieved a sale within four months of instruction at a sum close to the asking price, with the new owner offering part-time work to the director concerned. The business was relocated within central London, all other members of staff being retained.
Retirement Sale – Heating and Hot Water Systems
The owners of this hot water and heating systems supplier wanted to retire. With a turnover in excess of £1 million, the business supplies condensing boilers which are environmentally friendly and cost efficient.
An offer of 86% of the asking price was accepted for this business, with timescales of less than 1 month from offer to completion, including due diligence!
Retirement Sale – Roofing Specialists
This specialist roofing company was sold due to the retirement of one of the two owner/directors.
The sale was complicated by the nature of the purchaser’s financial arrangements and security offered to lenders, but by maintaining close involvement in all legal aspects of the deal we were able to ensure that our clients’ interests were represented both commercially and legally.
A sale at very close to the asking price was achieved, with continuing employment for the one director who wished to remain with the business.