
Selling Your Business
How we deliver maximum value for you
Selling your business is a big decision, often the culmination of a lifetime’s work and carrying financial, professional and personal significance. Before you consider selling you will want and need to know the value of your business. As one of the longest serving corporate finance firms in London, when we work with you to sell your business, we do so having listened carefully to your objectives, always acting with your best interests in mind. Our aim is that every transaction on which we advise results in the optimal mix of the Corbett Keeling ‘3 Cs’: cash, certainty and chemistry.
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CashOur advice aims to maximise the amount you receive from selling your company and typically results in a 40% uplift in sale value
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CertaintyWe work to create certainty in the success of a sale and have a 90% deal completion rate
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ChemistryWe proactively seek a new owner who will help your company and your team to flourish
Before the process of preparing for a sale begins, you need to decide whether this is the right time for you to sell your business. We will work with you to analyse the factors that affect the current value of your company and identify implementable actions to improve profit growth and reduce risk, increasing value in the eyes of a buyer and preparing your company for the best time to sell, whether it’s now, in a few months’ time or even a year.
Our five stage sale process delivers maximum value for our clients:
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01
Pre-sale Preparation
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02
Process Preparation
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03
Engagement & Negotiations
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04
Due Diligence & Legal Documentation
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05
Completion
Sale Options
Our team at Corbett Keeling will work with you to establish which type of transaction best meets your objectives. These options typically include:
A trade buyer is a company operating in your sector or adjacently in terms of geography, product or market, in the UK or abroad. The trade buyer might be a direct competitor or a company at a different point on the value chain, such as a customer or supplier. Trade buyers typically aim to benefit from strategic and synergistic alignment and so will often pay the highest price.
Benefits to business owners include:
- Trade buyers often result in the highest price, often because of synergies that are achieved between buyer and seller
- Trade buyers typically buy 100% of the business giving you the chance to exit your business completely
- You may be offered a reduced but significant role in the company
- The market position of your business may be enhanced as part of a larger group with complimentary products and services
- Familiarity with the sector can enhance the chemistry between the buyer and your business
A financial buyer might be a private equity investor, an external debt provider such as bank or debt fund, a family office or even a high net worth individual. They will be looking to take a minority or majority stake in the business as part of a leveraged buy-out (LBO) transaction. The financial buyer will join the board of directors and typically look to sell their stake or exit the business within three to five years.
Benefits to business owners include:
- The ability to realise capital from your business whilst staying involved
- The opportunity to earn greater longer-term rewards as you retain a shareholding in a growing business
- A higher valuation price which can be achieved by gearing
- Minimal day to day interference; financial buyers are less likely to get involved with daily operations or disrupt staff
- Chemistry with the buyer is often easier as there are less people directly involved in the business
- There may be additional opportunities for growth backed by the buyer in the future
Selling to management involves the transfer of business ownership to a capable and ambitious senior management team via a management buy-out (MBO). The seller receives an initial payment with the remaining portion paid over the next three to five years. This type of sale can be funded by a private equity investor or an external debt provider such as a bank or debt fund; excess cash in the business is also often used to part fund a MBO.
Benefits to business owners include:
- MBOs are often the easiest and most straightforward type of sale to arrange
- Selling to management is the surest way to maintain confidentiality about the sale
- MBOs generally have the highest sale completion rate
- A higher valuation price can be achieved by gearing
- You can be confident that the management team has a deep understanding of the business
- MBOs typically result in a smoother transition for members of staff
An Employee Ownership Trust (EOT) is an indirect type of employee ownership where shares are held by an independent trust on behalf of all employees. This method of sale is especially attractive to company owners who can’t or don’t want to arrange a trade sale, perhaps because the business relies on a key contract, member of personnel or unprotected intellectual property, all of which may reduce their value to trade and financial buyers.
Benefits to business owners include:
- Achieve a fair market value for your shares
- Preserve the legacy and ethos of your business
- Benefit from favourable tax exemptions
- Incentivise your management and staff with the structure
- Exit in a straightforward and quick transaction
- Remain involved with the business if you would like to
Larger companies may be suited to an Initial Public Offering (“IPO”), also known as “floating” or “going public”, which means giving over a percentage of the company for purchase by the public in the form of shares. The company is listed on an exchange such as the Alternative Investment Market (AIM) or the London Stock Exchange, at which point shares can be bought and sold on public markets.
Benefits to business owners include:
- The opportunity for you and fellow shareholders to realise cash
- An injection of cash into the company to fund growth without resorting to debt and interest payments
- Ability to raise debt on more favourable terms from banks
- The opportunity to retain equity ownership and operational control while raising the company value
- Raise company profile and press coverage
- Improved ability to attract the best talent in the market with stock options and shares for which there is a market
Completed Transactions
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gasworld
Corbett Keeling is delighted to have advised John and Karen Raquet, founders and owners of gasworld on the sale of their business to its senior management team, led by Martyn Hammond and backed by private equity firm Mobeus Equity Partners. We ran a full process for John and Karen, exploring a wide range of buyers and helping them evaluate the relative merits of different types of purchasers. The completed transaction allows the shareholders to take a step back from the business, whilst the management team step into a larger role.
Our role:
We kicked off the sale process in 2020 with a Positioning and Readiness Optimisation Review (“PRO Review”) which gave gasworld’s owners, a comprehensive understanding of the value they could expect for the business at that time, identified measures which might be undertaken to increase that value and reviewed how ready they were for a sale process. On the back of the PRO Review, John and Kared asked Corbett Keeling to start a sale process the following year. In the first step, it was crucial to draft an information memorandum highlighting the many key strengths of the gasworld business model. At the same time we discussed and selected with John & Karen buyers we should approach on their behalf.
Interested parties were provided with all the relevant information they needed in order to put forward offers for the business. As to be expected in a sales process, the offers varied in structure, value and timing of payments. We advised John and Karen on the relative merits of each and together shortlisted preferred offers. The Corbett Keeling team then worked hard with the potential buyers to expand their offer letters into detailed heads of terms documents covering the key commercial aspects of the transaction, thus ensuring both the chosen buyer and the seller had a clear understanding of how the transaction would work and there could be little room for disagreement later in the process. Once the full terms of the transaction had been agreed, John and Karen selected Mobeus Private Equity as their preferred buyer and entered exclusivity with them; we then managed the due diligence and legal documentation process to reach a satisfactory completion for all involved.
About gasworld:
Headquartered in Cornwall, gasworld was founded in 2003 to provide more transparency in the technical world of industrial gases. gasworld is a leading provider of industry news, data and events to the industrial gases market and the fast-evolving hydrogen economy. In 2019, they developed “H2 View” following the growing importance of hydrogen in the low-carbon economy.gasworld
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- Selling Your Business
- Year2022
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Air Charter Service
Corbett Keeling is delighted to announce that Air Charter Service Ltd (“ACS”), a global provider of executive jet, commercial jet and cargo aircraft chartering services, has completed a successful share buy-back. Corbett Keeling originally advised Chris and Tina Leach, founders and owners of ACS, on the sale of a minority stake in their business to Alcuin Capital in 2016 and are now delighted to have been able to help them and their management arrange an exit for Alcuin, in a second transaction, some six years later.
About the deal:
Funding for the transaction was negotiated with multiple sources and, despite headwinds arising from a challenging economic landscape post-Covid, Corbett Keeling worked with the key stakeholders to structure a lending package that best suited the interests of ACS, ultimately arranging a multi-tranche solution with two lenders.About Air Charter Service:
ACS is a global provider of executive jet, commercial jet and cargo aircraft chartering services. Founded by Chris Leach in 1990, it has grown to operate from multiple offices across six continents. Since its inception, the company has gone from strength to strength and now provides a full suite of services covering private, group and cargo charter, as well as a range of specialist chartering solutions.Air Charter Service
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- Selling Your Business
- Raising Capital
- Year2022
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REAL Digital International
We advised the shareholders of REAL Digital International Limited (RDIL) on the successful sale of the business to LDC, a mid-market private equity firm.
Headquartered in Croydon, London, RDIL was established in 2004 and is a specialised data-led software solutions and automated fulfilment provider. RDIL supports a wide range of sectors including healthcare organisations and mobile network operators by solving complex fulfilment challenges.Barry Stephens, Managing Director, and Chris Tagg, Sales Director, led the buy-out of the founding shareholder. The two of them, supported by the excellent wider team at RDIL, will continue to drive the business forward and provide unique solutions to their existing and new customers.
REAL Digital International
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Service
- Selling Your Business
- Year2021
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Arlingclose
We are delighted to have advised the shareholders of Arlingclose Limited on a successful sale of the business to its existing management team. Arlingclose is an independent treasury advisory firm predominantly serving the public sector. Founded in 1993, Arlingclose has grown steadily over the past 28 years and now advises some 200 clients, primarily local authorities and councils. Based in the City of London, the firm prides itself on providing high quality independent financial advice on investment, borrowing, and financial management. It also offers market leading expertise on specific complex treasury related projects, such as capital financing, debt restructuring, and hedging arrangements.
Mark Pickering, CEO, led the buy-out from his fellow founding shareholders, supported by directors Mark Swallow, David Green and David Blake. All employees of Arlingclose are equity shareholders in the new structure.
Corbett Keeling advised the shareholders on their exit strategy, negotiated terms, structured the management buy-out and raised finance to facilitate the transaction.Arlingclose
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Service
- Selling Your Business
- Raising Capital
- Year2021
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See what our clients say about us
Not only was Corbett Keeling’s advice always timely, to the point and in our best interest but, crucially, they had outstanding knowledge and understanding of the potential buyers, whether trade or financial and UK or overseas.
John HorganCo-Founder and Director
Corbett Keeling created a way forward, where others could not, at a critical moment for the management team. Their access to the appropriate funders in the UK and overseas, and their ability to move quickly, were both crucial to making this transaction possible.
Patrick BanksCEO
It was a pleasure dealing with Jim Keeling and his team throughout the process. We wanted to find the right partners and to do the right deal for us - Corbett Keeling delivered just that.
Chris LeachChairman and Founder
As with most entrepreneurs, we have poured our hearts into our business and, although realising we would at some point need to step back, were cautious about beginning the process. The team at Corbett Keeling really were excellent at guiding us through the options and, when the time came, ensuring we secured the best deal with the best partner.
Sarah CarrollCo-Founder
I regretted choosing one of the big four global accounting/consultancy firms for the sale of my business – although they have a big brand name, I did not feel they provided the level of detail or interaction with prospective buyers that I was expecting and I wish I had used Corbett Keeling as I did in the previous sale. As a result I have come back to Corbett Keeling to deal with our next transaction as I feel they provide their clients with both a first class and personal service which is ultimately what we are all looking for.
Andy LeslieGroup Chairman