It is difficult to make general comments about the most attractive profile of
a business being offered for sale, but this target profile gives an indication
of the areas investors are interested in.
Market
- Clear marketing proposition in all markets served
- Growing markets
- A significant prescence in the markets served (attractive to strategic investors)
- No redundant or peripheral business streams
- Identifiable advantages over competitors (proposition, systems, IPR)
- Client loyalty not dependant on their relationship with the owner
- Attractive branding and image
- Ability to replicate the service in other markets (sectors or geographically)
Management
- Established and motivated second tier management with:
- Correct mix of skills and experience
- Track record of working together
- Ability to operate without the owner
Financial
- Three years of steady growth in turnover and maintainable earnings (profit after tax excluding exceptional items)
- Accurate financial information and reliable systems
- Revenues not reliant on a small number of customers (no single customer over 10%)
- Good repeat revenues or rationale for recurrent project business
The Company
- Strong compliance with industry and statutory requirements
- No litigation (Certainly no unquantifiable outstanding litigation)
- Absence of minority shareholders with interests not in line with the owners
- Smart, motivated, trained staff and premises
- Low staff turnover
The Owner
- Good reason for selling
- Unlikely to compete
- Capable of covering warranties
For more information contact:
Martyn Fray on 01858 545885 or martyn.fray@talktoSPS.com