|Deal completed in:||5 months|
A young but fast growing business, the national road testing company specialises in providing measurements of the strength and skid resistance of any paved surface including roads, car parks and cycle and bus lanes throughout the UK. The company was founded only two and a half years prior to the sale but owned significant assets in the form of road testing equipment.
The owners made the decision to sell as they felt that they had taken the business as far as they could within the infrastructure/resources that they felt comfortable in managing.
However they were extremely sensitive to this information leaking into the market because they operate in a highly competitive field where high value long term contractual commitments are made but customers had get out clauses in the event of the sale of the company. The owners therefore didn’t want any of their competitors to find out about the intended sale as this information could be used to undermine the owners’ position and would potentially devalue the goodwill of the company.
What Hornblower did
We therefore prioritised our marketing approach so that initial approaches were made to potential buyers with synergy to the business sector but who were not direct competitors. The ultimate sale of the business however was to a direct competitor and all dialogue was managed through Hornblower under strict NDA and anti-compete agreement to manage any risk.
The owners originally perceived that any competitor would only value the business based on the value of the specialist vehicle assets but as a result of the Sales Memorandum and Hornblower’s marketing, the business sold for a good multiple of profits and far in excess of the value of the assets.
The competitor has gained significant market share as well as a well-run profitable business. They are now able to capitalise on their enhanced position in the market place.
The owners’ were able to exit the business having realised a good and fair price for the business which was beyond their original expectations.
SOLD – March 2013