Inform Magazine

WHAT BUYERS LOOK FOR IN A COMPANY

PLANNING YOUR BUSINESS EXIT: PINPOINT THE PERFECT TIME TO RETIRE

HOW AI IS INFLUENCING THE COMPANY SALES MARKET

UNDERSTANDING THE LEGAL PROCESS

WHY

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# 1 ADVISER THE UK’S CORPORATE

ENCOMPASSING ALL OF MARKET BUYER TARGETING

MULTI AWARD WINNING

BESPOKE BUYER MATCHING ENGINE

GLOBAL BUYER REACH

UK BASED FOR UK SELLERS

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RECORDS CONTINUE TO FALL “We are hugely optimistic about what FY26 has in store for us.”

PETER KELLY OPERATIONS DIRECTOR

Obviously there remains a degree of uncertainty over what effect the tariffs imposed by the American government will have on the UK M&A market. However, we are confident this will not stop company owners wanting to retire or sell their business, or deter other companies which are on strategic buy-and-build programmes. There has always been some uncertainty about what may or may not happen in the world, and focusing on the operations we can control has always proven to be a successful policy. We are hugely optimistic about what FY26 has in store for us. The high level of activity we saw in FY25 and the record amount of interest from buyers means we start the year with a strong pipeline of deals, while another BADR increase in April 2026 means we are encouraging would-be sellers to consider their options while time remains to take advantage of the current rate. Our growing team contains a huge amount of experience blended with some very talented young people who are bringing new ideas and energy. And as we continue to widen our net in terms of the range of acquirers we deal with, both investment and trade, throughout the UK and EU, one of our next strategic steps is to expand in Ireland and leverage that capability with our knowledge of EU-based buyers. By reading on, you can find out much more about our ability to not only discover the greatest possible scope of potential acquirers, but also why buyers are eager to continue working with us after an initial transaction has been completed. These exciting times also extend to the whole K3 Capital Group to whom we belong, which also continues to make acquisitions of its own, thereby diversifying its service offering to create an even stronger overall client experience. With ongoing success across a very broad range of sectors, and geographically in every corner of the UK, yet another record breaking year looks in prospect.

etting records is not a new experience to us. However, the feeling of pride when new milestones are reached never gets old.

FY25 was another record breaker, in terms of the number of transactions we completed, the total amount of value generated for clients, and the level of interest we saw from buyers, as evidenced by the number of NDAs signed, meetings arranged and offers received. All of those factors have contributed to us retaining LSEG’s No.1 position in the UK corporate mid-market company sales adviser ranking for the eighth consecutive year, and securing the top spot in the European standings too. A slightly unusual 12 months saw two periods of time when there was a major flurry of deal activity, based upon increases in Capital Gains Tax rates. The first of these was in the run up to the Budget at the end of October, when there was some nervousness about the impact that would have on the M&A market. As it transpired, the CGT rate increase was less than some forecasters had predicted, from 20% to 24%. Nevertheless, for our clients who sold their companies at that time, especially the larger deals, it was the right thing to do as that change came in with immediate effect. Then we saw a similar thing again in the run up to the end of the fiscal year on April 5, at which point changes to Business Asset Disposal Relief, which allows qualifying shareholders to reduce their CGT burden on the first £1m of lifetime gains, meant a rise from 10% to 14% paid on gains - and deal activity matched that of the previous autumn. Borrowing costs, meanwhile, are slowly coming down, reducing the cost of any debt a buyer may incur to fund a transaction and potentially having the impact of increasing both valuations and overall deal activity.

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IN THIS ISSUE

Having the right legal support, working in harmony with a skilled sales adviser, is vital to a smooth exit. We can ensure legal expertise is included from day one, helping you to save on solicitor fees. 15 Understanding the legal process Inform CREATED AND PUBLISHED BY KBS CORPORATE SALES LIMITED , KBS HOUSE, 5 SPRINGFIELD COURT, SUMMERFIELD ROAD, BOLTON, GREATER MANCHESTER, BL3 2NT TEL: +44 (0) 1204 555 081 EMAIL: enquiries@kbscorporate.com WEBSITE: www.kbscorporate.com

A buyer’s view: “Every time I get an e-mail from KBS, I get a little excited!” Finding the ideal acquirer for a client is always gratifying, but when that buyer cements the relationship by entering into further deals with KBS it’s even more fulfilling.

Planning your business exit: Pinpoint the perfect time to retire

Dan Greenfield, our Senior Research Strategy Manager, reflects on another momentous year for his team and the constant drive to deliver ever greater value to our Strategy and spirit: Driving research performance to record results

Are you at, or approaching, the time of life when you’re thinking it may be a suitable point to start winding down from the rigours of owning a company? Here are five factors to consider which may help you in reaching that decision.

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ON THE COVER

Substantial tax benefits for the vendor are a major advantage of EOTs, but there is plenty more besides that also makes them an attractive exit option. Exploring the benefits of an Employee Ownership Trust company sale

How AI is influencing the company sales market

Packed with potential: Unboxing the investment surge Demand is growing for acquisitions of UK packaging businesses. We unwrap the reasons why. 21

Experts share their thoughts and insights on the possibilities and likely implications of AI on company sales.

What buyers look for in a company

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Which factors can make your company stand out to acquirers in the market? We explain the value drivers that will help you maximise your opportunity.

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IS YOUR BUSINESS AN ATTRACTIVE TARGET? HERE’S HOW TO CATCH A BUYER’S EYE

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hich factors can make your company stand out to acquirers in the market? We explain the value drivers that will help you maximise your opportunity.

MARKET POSITION

The next area potential buyers will study is the company’s market position. What they will be looking for is that the target company is positioned strongly and has distinct advantages over its competitors. Factors within this include sustainable market share, a unique selling proposition, and the loyalty and size of the customer base.

When a buyer is interested in acquiring a company, there are several key factors they will consider to ensure they are making a solid investment with as little risk as possible. The most important of those factors is usually the financial performance of the company. At the heart of this is a strong track record of profits, ideally year-on-year, as well as revenue growth and a positive cashflow. As a business owner, you need to be able to demonstrate this through financial statements and tax returns, which a buyer will want to study in depth as part of their due diligence process. It does not only apply to the company’s past and present performance either. Buyers will also want to see forecast projections. If you are a company owner who is thinking about exiting your business, you may have some concerns about exactly what you need to do to make sure everything is ready to be presented to a potential buyer. We strongly recommend seeking the expert help of an adviser such as KBS Corporate who can ensure this process proves to be smooth and straightforward. We can showcase your company in the best light by highlighting its key value drivers.

Buyers will also look for positive online reviews and testimonials, and high customer retention rates.

Many buyers look for businesses operating within a distinct niche in the market, while companies with a strong brand are also very appealing.

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Strong IP assets, such as proprietary technology and trademarks, also appeal to prospective buyers. OUR BUYER REACH When preparing a business for sale, understanding the importance of all these factors can help company owners maximise their opportunity of attracting a buyer that would be the ideal fit.

OPERATIONAL STRENGTHS

The final key area to which acquirers will pay close attention is the operational functionality of the company.

Central to this is the workforce, including senior management. Having high quality, experienced staff, in a streamlined structure, can greatly enhance the appeal of a business. Making sure this is in place, along with strong leadership, can make the transition to new ownership much easier, and reduce the risk of teething troubles when the company changes hands. Of course, the buyer may well be keen on the idea of a handover period in which the vendor stays on for a few months to smoothen the transition. On a more technical level, a buyer will look at the efficiency of processes, systems and technologies that are in place. And arguably the most important aspect in this area is that a buyer will certainly be looking for a well-run business which has the potential for growth and scalability. A key preparation for business owners to make is to illustrate a strong track record of operating with an efficient cost structure. Buyers are looking for companies that have opportunities for expansion, whether that is through new products, markets or operational improvements. A well-defined business model with minimal risks will also help to boost a company’s chances of attracting a larger pool of potential acquirers - and a higher sale value as a result.

The best way to do this is with the help of an experienced, professional company sales specialist.

At KBS Corporate, we have been successfully finding buyers for companies for over 25 years, across the full range of industries and sectors. Those buyers come from all over the world. We work with trade acquirers, private equity firms and institutional investors on every type of transaction, including MBOs, MBIs and Employee Ownership Trusts. Our buyer reach is unmatched in the industry, thanks to the technology we have developed ourselves, the network of connections we have built up over the years, and the skill, experience and dedication of our team – who know exactly where to look to find the perfect buyer for every company, and explore every avenue to do so.

Get in touch today to find out how we can help you achieve your goals.

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STRATEGY AND SPIRIT: DRIVING RESEARCH PERFORMANCE TO RECORD RESULTS

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cornerstone of our success is having the most comprehensive access to acquirers in our industry, allowing us to explore every possible avenue in the search for your company’s ideal buyer.

Every company is unique, and selling a business successfully means truly understanding what kind of buyer will see its value, and why. Together with our clients, we have aligned expectations, mapped the right markets and built bespoke buyer search strategies that give each company its best chance of success. For the Research team, my role has been about clarity, consistency and belief. Clarity in what success looks like; consistency in applying the tools and processes we have; and the belief that with the right approach and enough determination, we can solve any problem. Whether supporting the team with the use of our proprietary Buyer Matching Engine, encouraging new ways to leverage data or simply helping individuals find the confidence to take ownership of their work, the focus has always been on making each person - and therefore the whole team - stronger. The past year has also been one of continued evolution in how we utilise technology. The Buyer Matching Engine, centralised research databases and AI-supported processes provide reach and scale that would be impossible manually. But it’s the human element - our researchers interpreting, refining and acting on that information - that turns technology into results. We have not pursued technology for its own sake. We have focused on how it enables our people to be better: faster in their work, sharper in their judgement and more confident in their approach. Whether exploring new sectors, refining buyer profiles or developing deeper industry relationships, the tech is the foundation, but our people are the builders. TURNING TECHNOLOGY INTO RESULTS

Dan Greenfield, our Senior Research Strategy Manager, reflects on another momentous year for his team and the constant drive to deliver ever greater value to our clients. In the previous edition of Inform, we explained the perfect mix of technology and human talent that drives forward the Research department at KBS Corporate. Since then, we have proven further that success does not stem from merely having the right tools or the right people - it comes from how you apply them both, with purpose, clarity, and resilience. Over the past year, the Research team has maintained that philosophy, delivering one of the most successful years in our department’s history. We can showcase your company in the best light by highlighting its key value drivers. When I joined KBS Corporate as Senior Research Strategy Manager, I was inspired by the passion of our people and the power of the technology in place. My focus was simple: take what was already working and build on it, while creating an environment where strategy and determination drive results. From the perspective of our clients, this meant engaging with them directly to design the best possible research strategy to meet their objectives. PURPOSEFUL LEADERSHIP, TANGIBLE IMPACT

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A TEAM THAT KEEPS RAISING THE BAR

LOOKING FORWARD

Perhaps what makes me proudest of the past year’s achievements is not a single deal or a particular milestone, it’s the way the team has embraced the challenge. They have taken ownership of their results, collaborated across the business and delivered consistently strong performances.

Our focus remains on continuous improvement. We will keep enhancing our technology, exploring new markets and refining our processes. But just as importantly, we will continue investing in our people: providing training, mentoring and the opportunity to grow their careers here at KBS. The Research department’s success story over the past year is just one chapter in the wider growth of the company. With the M&A market showing renewed energy and our operations across KBS Corporate and the wider K3 Capital Group strongly positioned, we are excited for what the future holds.

Part of the success has come from changing the way we think about challenges.

Rather than saying "No, because…", we’ve tried to approach problems with a "Yes, if…" mindset.

Yes, we can achieve this if we think creatively. Yes, we can meet that goal if we adapt our strategy. Yes, we can solve that issue if we work together and push ourselves further. That shift in mindset - being solution-focused, not obstacle-focused - has made a tangible difference in how the team approaches their work. And the success has not been driven by one or two individuals but by a team that shares goals and holds itself to high standards. The culture within Research has become one of accountability, support and continual improvement - and it’s clear to see the positive impact this has had, not only on our results but on our clients’ outcomes too.

It has been a record-breaking year - but we see this as still only the beginning of what our team can achieve.

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A BUYER’S VIEW: “EVERY TIME I GET AN E-MAIL FROM KBS, I GET A LITTLE EXCITED!”

DANIEL ZHANG CXO, TEQNION

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inding the ideal acquirer for a client is always gratifying, but when that buyer cements the relationship by entering into further deals with KBS it’s even more fulfilling. Swedish industrial group Teqnion have added eight companies to their portfolio since 2023 with our help – Daniel Zhang, their CXO, explains why they keep coming back for more…

Selling companies is not like selling coffee or cakes, at least not on the face of it. Unlike your typical high street café or bakery, you don’t tend to see the same faces every Saturday morning, those loyal customers who know and trust the wares you have available. For most business owners, selling a company is a one-and-done event. Acquiring, on the other hand, can be different – but even at KBS, where we sell more companies than any other adviser in the UK and Europe, you still wouldn’t anticipate the kind of familiarity with buyers that a thriving local shopkeeper might expect. However, Teqnion are a different proposition. The Swedish industrial group have found the companies on offer with KBS to be every bit as appealing as a tasty cinnamon croissant and a frothy chocolate-sprinkled cappuccino – and they keep coming back for more. Since May 2023, eight companies have been acquired by Teqnion in which KBS has served as sell-side adviser. All of them have fitted perfectly into the acquisition model operated by the group based in Solna, just outside the centre of Stockholm, the Swedish capital. Teqnion, in their own words, are interested in robust industrial companies with good profitability and sound history. They invest in people, strong entrepreneurs who are passionate about their projects. “Commitment, attitude and will are just as important as product design and market share,” they say. Then, under their long-term ownership, it’s all about taking the company to the next level, for they have no exit strategy themselves. The subsidiaries are run by competent managers who, together with their employees, are driven to constantly develop the companies and become more customer-oriented. Since acquiring Stanwell Group in May 2023, Teqnion have returned to KBS seven more times to add Surge Protection Devices, Nubis Solutions, Avelair, UK Lanyard Makers, Awarded 2U, Merridale and Norlin Polymers to their growing portfolio. The triangular structure comprising company shareholders, Teqnion and KBS is clearly built on very secure foundations. And - revisiting the bakery theme for a moment - just to put the icing on the cake, Teqnion are excellent to work with: proactive, approachable, open, friendly and helpful! We asked Daniel Zhang, Teqnion’s CXO, to provide an insight into the successful collaboration with KBS which continues to be so rewarding for UK company owners.

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Q: Hi Daniel. Please tell us how you became aware of the opportunity for the first company you bought through KBS (Stanwell). What convinced you to go ahead with the acquisition? We were very new to acquiring companies in the UK, so I found a couple of platforms that showed potential business sales. Through a case on that platform I got in contact with Fabio Rambelli (Associate Director) at KBS, who later introduced me to Stanwell. What made me want to pull the trigger on Stanwell? Apart from the great financials, the history and an easy-to-love business model was the fact the vendors seemed to be really wonderful and trustworthy people (which they have proven since as well). Additionally, I got a very good feeling for Fabio that from the start showed great professionalism in a combination of being pragmatic, flexible, transparent and a good human being. Q: What were the factors during that first transaction that made you think you’d like to do business with us again? I knew after that deal that we would do more deals together, which of course we have. Some sell-side advisers think their role is to be like Leonardo Di Caprio’s character in Wolf of Wall Street – trying to oversell certain aspects and sometimes even trying to hide some. Fabio was not like that at all. It felt much more like matchmaking, which is the approach we like. It felt that Fabio really cared about the vendors and that they would be happy and get what they wanted, rather than seeing them as an asset you could sell and make commission from. But don’t get me wrong, he is also a very tough negotiator! Q: How impressed are you with the range of companies available to acquire through KBS? Receiving information, and slowly widening my own circle of competence, is a great way of being able to buy different types of business going forward, and of getting even better at buying the right business. Some of the businesses we have acquired have absolutely been companies I wasn’t looking for, because I didn’t know they could be as good as they were before you sent me the material. Every time I get an e-mail from KBS, I get a little excited! Q: What would you describe as the key qualities offered by the KBS team during a transaction process? I think everyone I have interreacted with at KBS is different. But overall, my impression with the KBS people is that they feel authentic and that they are ‘real people’ i.e. not trying to fulfil a specific role or follow a strict process or template. Rather, my feeling is that the deal leaders I have been through processes with are very understanding of the vendors’ feelings and they try to find a way to get the deal to work.

Q: Have you ever encountered any difficulties during a transaction process which KBS has found a solution for? I think every transaction process has its own challenges. But one thing that is always there is the emotions - and potential cold feet - in order to get it over the finish line. The question ‘are these guys trustworthy?’ in relation to Teqnion is probably the most important – without that, money doesn’t matter. Will they actually pay what they promise? Will they handle the company as they have promised? Do they have the capabilities to support my baby when it comes to it? etc. I believe KBS has been of great help when it comes to addressing those questions and feelings because they have their own personal experience dealing with Teqnion. I’m not saying we are perfect, but I think KBS explaining to the vendor the ‘quirkiness’ Teqnion possesses is very helpful for both the vendor and us – it gives the opportunity to the vendor to decide with a fuller picture, whilst we never want to do a deal if we don’t believe we fit well together. Q: Finally, what would you say are the biggest positives of working with KBS from the perspective of a company owner seeking investment, and from a buyer's point of view? My feeling is that from a vendor’s perspective, KBS are very honest, have a great network and can get deals done. I know there are many advisers out there that promise very high price tags for companies, which usually comes with high adviser fees as well. That usually ends with disappointment for everyone as the company never gets sold, even though a lot of time and energy has been put into it. The people I have experience with at KBS feel like they would rather under-promise and over-deliver. At the same time, it feels like they really try to recommend the best for the vendor. I respect that a lot. As a buyer, we are fast approaching 10 companies acquired through KBS. For me, it is really the breadth of cases, the trustworthiness and flexibility of the advisers, combined with that I (and the vendor) always have one single contact throughout the whole process – not being bounced between a team.

Are you seeking an exit from your company, or investment to boost its trajectory?

Call us on 0161 258 0118 or contact us in confidence through www.kbscorporate.com

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PLANNING YOUR BUSINESS EXIT: PINPOINT THE PERFECT TIME TO RETIRE

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Why is it important to consider the timing of your exit? It can be difficult to understand when the best time is to consider the sale of your company, especially as it plays such a vital role in your everyday life. But one of the most rewarding parts of being a business owner is that you are in control of your own retirement plans. As the UK’s No.1 mid-market company sales adviser, we have vast experience in assisting business owners by sourcing the ideal buyer and generating maximum value – ensuring our clients can enjoy the retirement they so richly deserve. We appreciate the importance of deciding to sell your company and retire, whilst simultaneously guaranteeing you benefit most from your years of hard work and dedication. A re you at, or approaching, the time of life when you’re thinking it may be a suitable point to start winding down from the rigours of owning a company? Here are five factors to consider which may help you in reaching that decision.

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YOUR BUSINESS HAS ACHIEVED ITS MAXIMUM VALUE

The first clear indication that the right time has arrived to sell is that your business has reached its peak value. This year, we have seen valuations across multiple sectors at an all-time high, with many business owners confident their profitability has increased in 2025. Clearly a highly profitable business is one that is attractive to potential buyers, meaning it could be the perfect time to consider your exit strategy.

YOU WANT TO CLARIFY YOUR SUCCESSION PLANS

Another consideration is a lack of clear succession plans. A way to enable further growth is to pursue a synergistic buyer. This will allow for the continuation of the business whilst enabling you to follow other interests.

YOU HAVE NOTICED SHIFTS IN THE INDUSTRY LANDSCAPE

A retirement sale may become an attractive prospect due to changes in the industry landscape. There is no denying there have been a variety of changes to how businesses operate in recent times, whether that is the increase in home working or the increasing role of AI. Now could be the best time to pursue a sale to ensure future financial security.

YOU ARE PREPARED TO TRANSITION INTO RETIREMENT

Perhaps the most obvious sign that it is time to sell your business is that you are personally ready to retire. This could be a desire for more time with the family, travelling, or simply a more relaxed lifestyle without the rigours and responsibilities of running a company.

YOU ARE SEEKING TO ENSURE FINANCIAL SECURITY FOR THE FUTURE

The last sign is that you have been considering your future financial security. Selling your business now offers the chance to secure financial security for retirement, protect your wealth from inflation and market volatility, and diversify your investments for greater stability, all of which align with the goal of retiring comfortably.

Deciding to sell your business and retire is a major milestone, offering the potential for great rewards. Timing the sale can help you secure your future and preserve your legacy.

We are here to help you navigate the process for the best possible outcome. Contact us in confidence on 0161 258 0118 or through www.kbscorporate.com to learn more.

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COMPANY SALE PREPARATION: UNDERSTANDING THE LEGAL PROCESS

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aving the right legal support, working in harmony with a skilled sales adviser, is vital to a smooth exit.

WHAT WILL A SOLICITOR DO IN A BUSINESS SALE PROCESS?

Besides taking ownership of any legal complications that arise during the sale of a company, and providing solutions for those, the solicitor will also anticipate any potential issues and get ahead of them so that they do not cause any unnecessary delays or wrangles with the buyer. They will also have specific responsibilities, such as ensuring confidentiality is maintained, due diligence is carried out with the required discretion, and that the legal documents containing details of the sale agreement are comprehensive and completely accurate. The solicitor will ascertain that the sale agreement not only explains the structure of the transaction, but also makes sure that details such as any intellectual property rights, trademarks and copyrights are included, and that employee contracts are safeguarded. You may be thinking that having a solicitor on hand throughout the sale of your company is likely to be very expensive. But this is a great example of why working with an adviser such as KBS Corporate is such a good idea – because we offer our clients an integrated solution, with the opportunity of all-inclusive legal fees. What this means is that if you choose one of our partner law firms as your legal representative, we can include the costs within the overall transaction fee – which will be entirely transparent and outlined at the beginning of the process. Also, those legal fees will be contingent on a successful sale of your company, to protect you once the transaction reaches the legal stage. That means you will not be liable for any fees should the deal break down through no fault of your own. Once the transaction has completed, the fees payable to KBS will not deviate from the transaction fee set out at the beginning – which means there will not be any unwelcome surprises. THE COST OF HIRING A SOLICITOR

We can ensure legal expertise is included from day one, helping you to save on solicitor fees.

When you sell a company, receiving the correct legal advice is absolutely essential.

There are various legal considerations you are obliged to fulfil.

Having someone alongside you who is not only familiar with the process, but a proven expert, is a big advantage in making sure all the right boxes are ticked. It also gives you peace of mind that everything is being done properly. The first step to take is to enlist the services of an experienced company sales adviser such as KBS Corporate who will oversee every aspect of the transaction, which means you can spend your own valuable time ensuring your business is performing to maximum effect. The company sales adviser will have a connection to a law firm which is fully versed in corporate transactions. At KBS, we do not rely on a solitary individual solicitor or law firm. We have been successfully selling companies since 1998 and we have built up a carefully selected panel of trusted law firms that we partner with, safe in the knowledge that they will provide the highest level of service throughout the process. Our legal partners are experienced in all types of company sales, including those in which buyers from overseas are negotiated with.

To find out more about how we can help with the sale of your company, contact us today.

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EXPLORING THE BENEFITS OF AN EMPLOYEE OWNERSHIP TRUST COMPANY SALE

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ubstantial tax benefits for the vendor are a major advantage of EOTs, but there is plenty more besides that also makes them an attractive exit option.

ADVANTAGES OF AN EOT FOR THE EXITING SHAREHOLDER

• You have full control of the sale process – By this, we mean you are not at the mercy of an external party with their own ideas about how they want the sale to unfold. Instead, you form the EOT and you set your own pace to a timeline that suits you. • There is no haggling over price – At KBS Corporate, when we preside over an EOT deal, our team will arrange an independent valuation and the price is then agreed between you and the trustees of the EOT. It is a fair market valuation and broadly equates to what a third party would be likely to pay. The pricing is set before the sale process begins, so you would not be committed to a transaction that ultimately culminates in delivering an unacceptable price. • Fewer ‘moving parts’ within the process – There will obviously still be some legal boxes to check, but much less takes place in the way of due diligence • Substantial tax benefits – Probably the best advantage of all…EOT sales are completely tax- free! As a seller, you could typically expect up to pay up to 24% in Capital Gains Tax on the increase in capital value of your business. But the EOT must be executed with pinpoint accuracy to avoid being rejected by HMRC, which would mean full tax on the sale having to be paid, so having the right adviser alongside you is of paramount importance. than with a trade deal. An EOT is a more collaborative than combative process.

Although it is classed among the ‘alternative’, or less common, routes for exiting your company, selling to an Employee Ownership Trust (EOT) has various advantages. And especially in the wake of the 2024 Autumn Budget, because high up on that list of plus points is substantial tax benefits for the shareholder. While the rise in the higher rate of Capital Gains Tax from 20% to 24% was nowhere near as steep as company owners considering an exit had been led to expect by the business media, it nevertheless made Employee Ownership Trusts an even more appealing option. Trade deals and private equity investments are the more prolific types of acquisition, but EOTs join management buy-ins and buy-outs, family offices and Initial Public Offerings in the category of alternatives that are also well worth considering. An Employee Ownership Trust is established on behalf of, and for the long-term benefit of, a company’s employees. It means that if you sell your business to an EOT, the staff will be incentivised to contribute to the future success of the company – although it is important to distinguish that the employees will not become the owners. That will be the Trust, and the company will still be run by a board of directors. WHAT IS AN EOT?

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ADVANTAGES OF AN EOT FOR THE COMPANY’S WORKFORCE • Employees do not require their own funding – The employees will not directly become shareholders themselves. Instead, the Trust becomes the shareholder. Thus, the staff do not take on any personal debt and it becomes a very low-risk venture for them. • Staff are working in their own interests first and foremost – Employees will now have a significant financial interest, as well as a voice, in the company and they will benefit from its future value. Therefore, they have greater motivation to ensure the ongoing success of the business, thereby increasing job satisfaction and productivity. • Significant tax-related benefits – Employees are able to receive £3,600 in tax-free annual bonuses, further encouraging high levels of commitment and engagement. Funding – As the employees do not buy shares or con tribute funds into the Trust, you may be wondering where your sale proceeds would come from. Some of it may be from the company’s cash reserves, the remainder bridged by debt – either raised externally or in the form of loan notes paid out from the company’s future earnings, usually at a preferable interest rate. But there are risks if the performance of the business suffers. WHAT OTHER ASPECTS OF EOTS SHOULD BE CONSIDERED?

Control – For an EOT to work, the seller(s) must lose ultimate control of the business, which means the Trust has to own 51% or more of the shareholding. The board of directors will make decisions in the best interests of the employees, with no requirement to involve the employees in their decision-making processes.

How we can help?

We offer a holistic service for sales to an EOT, with resources in all aspects of the transaction process - corporate finance, tax advisory and partner law firms who will provide the legal services to formulate and implement the sale.

Speak to us confidentially on 0161 258 0118 .

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HOW AI IS INFLUENCING THE COMPANY SALES MARKET

Dave Gardner Corporate Finance Managing Director KBS Corporate

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xperts share their thoughts and insights on the possibilities and likely implications of AI on company sales, including our own Dave Gardner (Corporate Finance Managing Director) and Mughees Saleem (Corporate Finance Director).

The impact of AI is unprecedented. As of July 2025, ChatGPT had nearly 800 million weekly active users - proving to be a key step on the journey of AI which has no end in sight. Gone are the days of speculating about the abilities of AI and what it will look like. It’s in your pocket and in the air we breathe by way of voice command. It’s omnipresent, almost god-like. AI is more sophisticated than we once envisioned, and smart technology beyond our grasp has yet to be imagined. AI is here, and is the topic of more conversations than ever. So, where does AI fit into corporate finance - or better yet, where does corporate finance fit into AI?

On November 30th 2022, Open AI’s ‘ChatGPT’ was launched, a generative artificial intelligence chatbot. It was concertedly viewed as nothing short of revolutionary, and its use quickly made its way into the business world.

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CAN AI TAKE THE PLACE OF PEOPLE?

you prepare for meetings. It hasn’t created a massive void of redundancies.”

AI is unarguably amazing. In corporate finance, automated transactions and processes free up humans to focus on strategic and compliance roles. For leaders in corporate finance, the implementation of AI creates opportunities to increase efficiency, reduce costs and create new services which are otherwise out of reach, and consistently achieved without the need for people management. “I just don’t believe you can sell something without people - the experience between buying something online and buying something in person, especially if it’s something you care about. “I think at some point in the future, some of the laborious typing we do probably won’t happen. You’ll have more automation around financial modelling and aspects of design. I think there will be a slickening of the system. “What nobody talks about and is actually far more interesting than AI is Web 3 and blockchain and how that can impact the deals market in terms of building SPAs. “But at the core of it, people still buy from people. For example, if I had an employment issue I’d always still go and talk to someone because I wouldn’t trust a computer knew the right answer. I think that will always exist.” The earliest fear of AI was predicted decades ago, and the concern remains provident today: will AI replace humans in the workplace, and what are the consequences of that? After all, AI is seen as more efficient and can perform daily tasks better and faster than humans, such as those found in accountancy. Fortunately, in corporate finance, the use of AI is likely to complement manual work, and serve humans in this respect rather than replace roles. It’s through this comforting realisation that we see the limitations of AI and can perhaps discredit some of its impact on corporate finance. Another speaker at the event attended by KBS shared their thoughts on the matter: “In terms of its lifecycle, AI has gone from being like a small child with limited use in terms of the business world and is now in its adolescent years. “I don’t know how long it will take to reach its grey-haired years, but I think it’s complementary and supports us in the day job because it gives advice faster and better when However, a speaker at a corporate finance event attended by KBS told the audience: SO WHERE DO WE STAND WITH AI NOW?

Another analogy was that “a technology expert has compared AI currently to being like one of the brick-sized mobile phones in the 1980s (to highlight the scope for development).” In business sales, AI’s automation of essential but repetitive and laborious manual tasks can free up a transaction adviser’s time for more customer-focused attention. AI can assist sales teams in understanding client needs and preferences, and predict closing likelihood. David Gardner, Corporate Finance Managing Director, commented: “There’s a long way to go before there is the level of trust and confidence with AI that is currently present in what is a highly personally and professionally managed service. “Currently, AI is useful to pull information together in a meaningful way on a timely basis. However, it still needs verifying and checking to ensure the completeness and accuracy of the information contained. “AI concentrates on information that is publicly available or published online, whereas our niche client base can be highly confidential in nature and each has bespoke requirements and nuances that can only be determined through personal relationships and the dedication of time and resources to those clients. “However, as AI develops and the sources of information become more varied, the potential for AI will no doubt grow and become a more viable option for everyday use, albeit never replacing the highly relationship-based approach that drives success within the corporate finance sector.” Mughees Saleem, Corporate Finance Director, added: “As with any new technology, there will be benefits and drawbacks from the application of AI within the corporate finance deal-making process. “On one hand, AI can be leveraged from a market research/data collation perspective, as AI chatbots can be much more efficient at collating useful information and presenting it in an easy-to-digest format. “On the other hand, the essence of dealmaking still requires the building of personal relationships with clients and buyers, and the human aspect of leveraging these relationships to get deals across the finishing line cannot be discounted in the age of AI.” And what do KBS Corporate experts think of AI’s impact on all things corporate finance?

For expert corporate finance advice, get in touch with us.

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PACKED WITH POTENTIAL: UNBOXING THE INVESTMENT SURGE

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emand is growing for acquisitions of UK packaging businesses. We unwrap the reasons why.

STRATEGIC INTEREST FROM PRIVATE EQUITY AND INVESTMENT BUYERS

Strategic buyers are focused on high-growth, niche sub sectors including:

Packaging has never been more important. With few exceptions, everything we buy is packaged, whether that’s in a physical store or, increasingly, online. Hence it’s no surprise that packaging companies are selling like carefully wrapped hot cakes on the M&A market. M&A activity in this industry is experiencing significant growth, driven by sustainability imperatives, technological advancements, private equity interest and a dynamic global marketplace. In the UK, deal activity rose by 25% year-on-year in 2023 alone. Globally, industry consolidation is accelerating, evidenced by landmark transactions such as Smurfit Kappa’s merger with WestRock and Amcor’s $8.4bn acquisition of Berry Global. These mega-deals underscore a strategic shift towards scale, global reach and operational efficiency. A notable trend is the influx of international buyers acquiring within the UK to strengthen their geographic footprint. For example, Dutch private equity group Waterland has been actively acquiring UK packaging companies, allowing them to enhance their European portfolio. • Sustainability: Packaging companies are at the forefront of sustainability, as evidenced by the surge in popularity of biodegradable, recyclable and reusable materials due to changing regulations and ESG goals. • E-commerce: Online shopping, amplified by platforms such as TikTok Shop and Instagram Shop, has revolutionised packaging demand. Brands seek cost-efficient, brand-enhancing solutions that offer a superior ‘unboxing’ experience and minimal waste. • Innovative packaging: Packaging is becoming increasingly intelligent, incorporating RFID, QR codes, NFC and freshness sensors to improve supply chain visibility and customer engagement. In 2025, the UK packaging market is valued at $60.94bn. KEY MARKET TRENDS

• Flexible Packaging: Plastic films, pouches and labels for e-commerce and consumer goods.

• Eco-friendly materials: Compostable, recycling or reusable solutions.

• Smart packaging technologies: QR code-ena bled, RFID-tagged and freshness-monitoring designs.

• Automation-driven solutions: AI-enabled machinery and robotics.

• Plastic segment consolidation: Major deals in rigid and flexible plastic packaging, such as Novolex’s acquisition of Pactiv Evergreen and the sale of Berry to Amcor. WHICH COMPANIES HAVE KBS SOLD IN THIS SECTOR?

Law Print and Pack sold to SCG Packaging

The Stockport-based packaging solutions provider was acquired by a leading South East Asian packaging manufacturer.

The acquisition strengthened SCG Packaging’s position with the UK market whilst expanding geographic reach.

The Packaging Company sold to Antalis

A provider of high-quality and bespoke packaging solutions was sold to Antalis, a global packaging and print distributor. The Packaging Company proved an attractive prospect due to its innovative and customer focused approach.

Harrisons Packaging sold to MacFarlane Group

The Lancashire-based company became a bolt-on acquisition for Scotland-based MacFarlane Group, strengthening its UK presence. Do you have a company in the packaging industry that you think the time may have come to exit? Contact us today to find out how we can help you to achieve your goals.

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