Page 13 - Wealth of Experience - Selling a Business 2019

CASE STUDY – BRENDAN MURPHY

THE VALUE

OF ADVICE

We’d got into the position When it came to the due diligence,
where we were the it was even more thorough than we
dominant player in the thought it would be. Being a US buyer
they wanted to do the due diligence
UK in our industry and we themselves. They were over here
wanted some help taking for six weeks rooting through our
it to the next level. We business. It was tough to keep this out
went to market towards of view of our employees.
the end of 2015 with the Confidentiality was paramount. We
goal of finding a buyer for did well to keep it under wraps as
our business. much as we did.

The deal was with a trade company Because we were a major player
in the US, owned by a private equity in a niche industry, when the
house, who operated in our niche deal was made public there was
sector. The sale enabled us to release a lot of surprise. I was delighted
some equity from the company, de- that the employee reaction was
risk a little bit and keep some control. overwhelmingly positive. The existing
management team remained in place
so for all intents and purposes their
“You’ve got to have jobs remained the same.
your heart and mind We would have found it difficult if the
on securing the sale.” buyer tried to impose on us. However,
they trusted us to know the UK
market and gave us support where we
needed.
Although they were a trade buyer,
much of the direction of the sale was You’ve got to have your heart and
directed by the private equity house mind on securing the sale. You need
who owned them. the mindset to really get the right
value for the business. This said, I
In the run up to the deal there were really enjoyed the process. It was very
three parties involved. Our Corporate exciting.
Finance advisers really delivered their
value. All the arduous preparations There was nothing we would have
were on top of running the business. done differently. The main piece of
Our advice team really guided us advice I’d give would be to find a
through the process. They provided good corporate finance company.
really good support. One of their guys They could understand where the
was even based in our office for two value lay in our firm, not to mention
or three months before the deal went the invaluable support they brought to
through. the table throughout.

13