Coming out on top - ensuring value through exit planning
Having put time, energy and investment in to their successful London software business, the two shareholders now want to maximise the value of what they will eventually take out through the sale of their company. They asked Azure Partners to help prepare and implement their strategy.
Exit planning - the entry point
With a proven track record of serving the insurance sector over many years, this client has a wealth of industry experience. It enjoys strong profits, customer loyalty and an enviable share of a market niche notoriously difficult to enter successfully. Two of its core strengths - project management skills and versatile in-house technology - make diversifying into adjacent markets genuinely feasible.
Working against these factors, however, were a number of factors under mining the potential sale value. Its niche market position, for example, had created an over-reliance on a small client base, risking significant shortfalls if a client were to be lost. Similarly, with no new clients won in five years, the business was on a low growth trajectory and its marketing and sales capability needed improvement. Another area of concern was that considerable industry expertise would depart with the shareholders, leaving behind an insufficiently prepared second tier management.
What we did
After evaluating the options and a timeframe for exit we researched the likely acquirers and their requirements. Along with the shareholders, we developed a strategy to take the business it into adjacant markets to increase the value of the company and the range of potential acquirers. Work was also done to develop and mentor the second tier management and to raise funds for expansion prior to sale.
What the shareholders thought
As for the shareholders, calling in Azure Partners is a decision they're glad they made:
"Recognising that selling a company is complex and that ours was not best placed to sell for value, we asked Azure Partners to assist us. They took us through their exit planning process, assessing the positives and negatives of our company from an acquirer's viewpoint. They identified types of possible acquirer and drew up a plan to optimise the value of the company. Today, Azure Partners provides practical month by month assistance to us in a range of areas."
Managing Director and Shareholder
Call 0207 100 1233 or contact mike.robson@azurepartners.co.uk