ABC Group has been trading for more than 20 years and has grown through acquisition into a three business, £10m turnover group including a UK market leading position in its main supply and distribution business. With a Group structure and growth strategy in place, the founder now sits as Chairman, the company was looking towards a medium term exit strategy.
A long-established 100% family food retail business. Husband and wife are the shareholders, while their two grown-up daughters are involved in the business in different capacities. The business traded from a combination of freehold and leasehold premises, and was valued at £10m, with a turnover of £12m, and earnings of £1.2m before interest and tax. The business was looking to acquire the freehold of one of the leasehold properties that they had traded in for two years, valued at £1.5m.
A 20-year-old established firm that is a specialist supplier to the construction industry. Despite its current £5m turnover, the business was a partnership five years ago. Mr A owns the business and has been driving it for the past 12 years, with a four-man senior team over much of that time. The owner’s daughter works in the business, but is not expected to be part of any succession team.
Mr B had no cash contributions as any extra funds were invested into additional stock. Furthermore, the banks’ attitude to transactional lending had changed and they would not support the business or consider the proposition on investment criteria.