Matthew Caffrey gives Channel Web his top tips for those who may be considering selling up in the near future.
When the decision is made to sell, and all the changes and plans are afoot, there is still the question of whether to sell to a trade buyer or a PE house, and if so which PE firm to choose.
“If PE is more attractive, any owner-manager should first think about the culture of the firm they intend to partner with”, says Matthew.
“I would always encourage people to take references on the PE houses, understand how they behave – both in good times and bad times – and meet as many people as they can from the organisation,” he advises. “You need to find that partner that understands your business and your industry and can help you set a really clear strategy, but, most of all, will help you think through the execution piece and deliver you practical support and advice in execution.”
As to how to attract a potential buyer, Matthew suggests that scalability and geography are other factors that can add value to a company. He says “A UK focused entity will probably be less valuable than a European or global entity. The plan should be to scale up beyond the UK over a period of time because increasingly customers are demanding global service.”
This article was originally published in Channel Web on the 17th September 2018.
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