|Deal completed in:||5 months|
Based in the Cambridge area, this was a highly successful business with over 25 years of trading. The owner wanted the business to continue but she also wanted retire and extract the financial value of her assets.
It is often difficult to sell a service business as a going concern because it is inextricably linked to the service provider – the owner. Potential buyers are put off a purchase because the assets are so nebulous and transient that it is difficult to acquire the business successfully.
This company had many assets, including an excellent pool of experienced, capable tutors, a highly loyal client base and a well perceived brand. However, the key difference with this business was that it had successfully made ‘tangible’ the ‘intangible’ by embodying its service in a rigorous set of processes and procedures that permitted the business to be successfully separated from the business owner.
What Hornblower did
We targeted similar agencies and potential investors and generated considerable interest. The sales process took only X months from start to finish and the business was successfully sold to an experienced teacher who wanted to set up a tutorial agency and used this acquisition to jump start the process.
Our client was delighted as we secured the full asking price for the agency and allowed her to retire with the value of her assets fully realised.
The buyer acquired a great launch pad into the growing tutorial market; he is now busy buying additional agencies to grow his business rapidly and the agency goes from strength to strength.
SOLD – June 2011