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TIMING
Whatever the motivation or option,
timing is an important consideration.
Good advisers should be able to highlight Following several acquisitions
a range of factors determining the best funded by ourselves the business
time to sell. It could be anticipated took PE investment in 2012 when
changes to legislation, competitor our revenues were circa £10m
tensions, tracking a valuation bubble
forming in your market, or M&A activity. with approximately 50 staff. It
was the foot on the ladder we
There’s always an element of luck with needed. In the past 5 years, we
the timing, but if you don’t prepare have grown significantly and
your business for sale you’re less likely
to achieve the maximum value when with our last acquisition our
an opportunity comes along. It’s great revenue has grown to £85m and
practice to be aware of all the ways to forecast to reach £100m in 2018
build a valuable business and ensure employing 750 staff.
it’s in the best possible position for an
approach. Clive Nation, CEO, Cennox

SPEAKER BOUTIQUE: PANEL OF PEERS This point was echoed by Guy Mucklow, founder
SPEAKER BOUTIQUE: PANEL OF PEERS
This point was echoed by Guy Mucklow, founder
& CEO of PCA Predict (formerly Postcode
& CEO of PCA Predict (formerly Postcode
Anywhere). “Don’t take your eye off your
The exit community of members planning to sell,
The exit community of members planning to sell, Anywhere). “Don’t take your eye off your
business,” he warned. “We got an experienced
or who have already sold, is growing within The
or who have already sold, is growing within The business,” he warned. “We got an experienced
CFO on board who had been through two exits.
Supper Club. Unsurprising then that we had a
Supper Club. Unsurprising then that we had a CFO on board who had been through two exits.
You need someone who can project manage it
full house for our Speaker Boutique on ‘Planning
full house for our Speaker Boutique on ‘Planning You need someone who can project manage it
and build a perfect data room.”
for sale & beyond’, with a panel of experts and
for sale & beyond’, with a panel of experts and and build a perfect data room.”
members sharing insights and advice on all
members sharing insights and advice on all
“An FD can maintain the confidence of a
stages of selling a business – from preparation “An FD can maintain the confidence of a
stages of selling a business – from preparation
potential buyer with timely, clear explanations
and negotiation to life after exit. potential buyer with timely, clear explanations
and negotiation to life after exit.
of variances,” adds Malcolm Durham, founder
of variances,” adds Malcolm Durham, founder
James Monico, co-founder of Cloudreach, which
James Monico, co-founder of Cloudreach, which of FD Solutions. “They can also be part of the
of FD Solutions. “They can also be part of the
team taking corrective action.”
sold its majority stake to Blackstone in February
sold its majority stake to Blackstone in February team taking corrective action.”
2017, likened the process of preparing for sale
2017, likened the process of preparing for sale
Building the right senior leadership team will
to a bird of paradise. “Before the courtship,
to a bird of paradise. “Before the courtship, Building the right senior leadership team will
help you achieve the best price and the best
you need to make yourself attractive and make
you need to make yourself attractive and make help you achieve the best price and the best
exit. “
them come to you; whether it’s by winning exit. “It’s a hard adjustment for a founder to be It’s a hard adjustment for a founder to be
them come to you; whether it’s by winning
told what to do by a new owner,” added Guy.
awards or saying interesting things in the
awards or saying interesting things in the told what to do by a new owner,” added Guy.
press,” he explained. “ “To avoid an earn-out, build an operating team To avoid an earn-out, build an operating team
press,” he explained.
and board who can run it without you. Keep
and board who can run it without you. Keep
a schedule of your time off or away from the
It’s also important not to get carried away
It’s also important not to get carried away a schedule of your time off or away from the
during the courtship. “During the sales process, office to demonstrate this is the case”.
during the courtship. “During the sales process,
office to demonstrate this is the case”.
be careful not to under-trade; get yourself a
be careful not to under-trade; get yourself a
ALIGN MOTIVATIONS
good FD to ensure your accounts balance with
good FD to ensure your accounts balance with ALIGN MOTIVATIONS
But just as you need to keep managing
your forecast numbers,” he added.
your forecast numbers,” he added. But just as you need to keep managing
expectations, especially your own, you need to
expectations, especially your own, you need to
maintain alignment between all stakeholders –
maintain alignment between all stakeholders –
because motivations are more likely to change
because motivations are more likely to change
the longer it takes.
the longer it takes.
“Selling your business can be like death by
“Selling your business can be like death by
a thousand cuts,” said Guy, commenting on
a thousand cuts,” said Guy, commenting on
the, often protracted, process of chipping and
the, often protracted, process of chipping and
looking for skeletons in the closet. “You will be
looking for skeletons in the closet. “You will be
judged by the company you keep, so get the
judged by the company you keep, so get the
best advisers you can afford to deal with the
best advisers you can afford to deal with the
buyer’s heavyweights.”
buyer’s heavyweights.”
A video with insights from all speakers at
A video with insights from all speakers at
this insightful event can be found at www.
Mar this insightful event can be found at www.
Mar
Martyn Dawes, Guy Mucklow & James Monico tyn Dawes, Guy Mucklow & James Monico tyn Dawes, Guy Mucklow & James Monico
thesupperclub.com
share their exit journeys in a panel Q&Ae their exit journeys in a panel Q&Ae their exit journeys in a panel Q&A
shar
shar thesupperclub.com