The SIA Group, with sales revenues in excess of £4m, specialised in the provision of over 50 standard training and development programmes as well as bespoke packages designed for a multi-national blue chip technology client base.
Following years of hard work, the Vendors wished to capitalise and retire. Our brief was to sell 100% of the share capital on their behalf and to secure a new leasehold agreement for their office premises.
Following an initial telephone conversation, we were invited to meet the Shareholders to discuss sale options for the business. From the latest financial information, we did a thorough fact find/due diligence in order to prepare a formal valuation.
Our valuation took into consideration the considerable Intellectual Property (IP) the business had developed over the twenty-nine years it had been operational. The development costs of the IP had been fully depreciated within the accounts, and a value needed to be established as part of the potential offering.
Our report included multiple valuation models, including discounted cash flow, earnings multiples and a percentage of sales/recurring revenues model.
Upon instruction, we completed a full information memorandum and executive summary for the opportunity, including financial history, forecasts, cash flows, net profit adjustments and valuation projections.
Research identified 1,240+ potential worldwide purchaser targets whom we contacted outlining a summary of the opportunity, and why it might be worth investigating. This direct approach was complimented by appropriate trade advertising both in print and online, together with exposure to our existing trade and investment contacts.
We received 19 non-disclosure agreements and sent out 15 full information memoranda, resulting in five requests to meet the Shareholders. Presentations involving explanation of the business and its financial operations were then delivered. This resulted in two offers being received.
The two offers received were very different in value range, and both were structured differently with varying elements and durations of performance and deferred payments.
Following a successful negotiation and due diligence process a deal was concluded by the Institution of Mechanical Engineers (IMECHE), a 160-year-old, London-based, professional institution with over 100,000 members in 140 countries.
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