Our clients were previously on the market with a well known and highly regarded corporate finance firm. Their minimum value expectation was £15m in return for 100% equity in their recycling and reclamation company which had been the result of many generations of hard work. The highest offer that could be secured was £13m; almost 15% less than our clients’ minimum acceptable value. KBS Corporate took over negotiations on the clients’ behalf and devised an extensive research strategy which encompassed potential UK and overseas trade and institutional acquirers. A deal was agreed with an overseas PE firm who already held a significant interest in the industry. The deal resulted in our clients receiving £30.7m on day one for 70% equity in the company. Not only did the PE deal offer better terms for our clients and their employees, but also enabled them to receive an even greater total realisation upon a full exit.
INTERESTED PARTIES: 13
KBS CASE STUDY: CONSTRUCTION
Our clients, owners of a well-respected UK-wide building services company, came to the market in order to find an acquirer who could help the company to accelerate its growth strategy. Our clients felt we should exclusively target potential trade acquirers who were already well-established within their industry, as they felt that only a company who operated within their space could really understand the true value of the business. The opportunity was pitched to trade and institutional acquirers alike throughout the UK and Europe, and an offer was secured for the business from a trade acquirer valued at £15.5m. Although this trade offer was well above our clients target value, they had never considered the possibility of a PE investor. Exploring this route granted our clients £17m on day one for just 77% equity in the business. The investing PE firm had prior investments and knowledge within the sector, therefore meeting our clients’ requirement of an acquirer with existing experience.