After many years investing finance and sweat equity to grow their SME, selling the business for its optimal value and a short earn out before retirement seemed out of reach for the two owner/managers.
Finding the right M&A advisor with a robust process made it attainable as Sherriff Technology directors Dave Haydon and Robin Whittaker discovered.
Industry:
Audio Technology, Product Development
Service:
M&A Coaching, Business Exit, Succession Planning
Have we built a business we can never leave?
Reaching their mid-60s was the call-to-action for Dave and Robin to initiate a succession plan so they could retire while fit and healthy. Sherriff Technology had grown to a 7-figure business across three product areas run by the two of them and a distributed team of 25 independent contractors.
From Day One, they had no plans to directly employ a team to keep fixed costs low.
Instead, they contracted freelance experts to fulfil various roles. This model worked well for 20 years but left no succession options within the business.
With the joint goal to retire, they needed a buyer committed to growing the business they had nurtured for twenty years of their lives. A tough ask with no experience of selling a business and no one in place to take over their roles.
They needed an experienced Mergers and Acquisitions (M&A) Advisor and brought me on board.
Not if you tell your story their way
With a goal to sell their business inside one year, I led Robin and Dave through my M&A process and agreed key deadlines for each stage. Both directors scheduled dedicated time during the week and weekends to complete the homework needed.
We identified six potential buyers and then analysed each through an M&A lens. One stood out as the clear no.1 and became the focus of our M&A work.
Neither Director understood the true value of their business. It’s vital to know from the outset. I helped them recognise and value tangible and intangible assets, leading to a much higher figure than they first thought achievable.
The real eye-opener happened when I showed them how to construct an equity storyboard to convey the business story, value and figures from a buyer’s perspective. This ‘buyer mindset’ approach also revealed how the business would operate without them at the helm.
Equipped with a strong equity storyboard, proven valuation and buyer mindsets, Dave and Robin confidently presented their business to their target buyer. Negotiations took place over several meetings. I supported them as a passive observer on key occasions, sharing advice during breaks that facilitated a successful outcome.
Then you can achieve an exit beyond expectations
Within their 11-month timescale, Sherriff Technology was acquired by the first-choice buyer. The new owner committed to growing the brands Robin and Dave worked so hard to establish, which was a key outcome for both.
The sale achieved a significant initial consideration and a one year high-potential earn out aligned to the growth ambitions of the old and new business owners.
One year ago, Robin and Dave could not see a way out. By following my M&A process and advice at each stage they achieved an exit beyond every aspect of their expectations.
Let’s chat about how I can help you realise the value in your business…
If I ever launch another business, Alan'll be my only call when it’s time to sell!
"We sold to our target company in 11 months. Every aspect of our business sale exceeded my expectations. If I ever launch another business, Alan'll be my only call when it’s time to sell!"
Dave Haydon & Robin Whittaker, Directors