Latest updates & news from Operational Development
February 2012 Project Phoenix – New Acquisition Search
Although January 2012 was slow to get started, when it did get going, the New Year has been busy.
In particular we've taken on a new acquisition search for a well-funded client who is seeking "turn-round" opportunities. Their general criteria are companies which are involved in :-
- manufacturing, distribution or services
- manufactured or industrial products or processes
- UK based, possibly with overseas branches or high exports
- turnover £20m - £100m
- loss making or low profitability
In addition to this new project, we remain active advising on disposals and on the other pro-active acquisition searches we have in hand for clients.
December 2011 Busy end to 2011
2011 ended with a flurry of activity up to mid-December.
The successful acquisition of a very profitable distribution company for a major client was completed in the quarter. And, despite the current financial markets, this was achieved in 4 months from initial introduction to completion – a speedy process even in the best of times.
Clients for whom we carry out acquisition searches have confirmed their continued demand for such opportunities, with some raising the thresholds of some of their criteria.
So, we look forward into 2012 with confidence and send our Best Wishes to all for a Merry Christmas and a Happy New Year.
August 2011 I-Spy Buyers
Over the years we've been around (40+ and counting) about 2/3rds of our mandates from clients have been to sell businesses. While still active on the sell-side, we are currently also very active on the buy-side, with a higher-than-normal number of pro-active acquisition searches in hand.
Our "qualifying" process for such acquisition searches ensures that we only carry them out for clients who have :-
- strategic reasons for seeking acquisitions
- serious intent
- funds for the acquisition
Our current pro-active "above the radar" acquisition searches include:-
- Project Babbage - software and IT services to the professional sectors, Ebit £1m plus.
- Project Barrier - manufacturing or services for Defence, Rail or Aerospace, T/o £10m+.
- Project Brace - manufacturing, distribution or B2B services, T/o upto £100m.
- Project Chase - UK industrial, manufacturer or distributor, Ebit £1m plus.
- Project Elgar - Energy sector - consulting, broking or supply aggregation, T/o upto £10m.
- Project Ranger - stand-alone UK manufacturing or distribution, Ebit upto £1m.
- Project Waterfall - supplying oil & gas, mineral extraction & power sectors, T/o upto £50m.
The clients behind all the above acquisition searches meet our criteria of being serious buyers, with strategic imperatives and with the funds to match.
Parties with a business that fits one of these acquisition searches should contact Chris Eynon or Clive Booth.
June 2011 Project Brace – Acquisition Search
We have a pro-active search in hand for a Client, a well funded acquisitive private group, which is seeking a business, division or group of related businesses, which may currently be "non-core", in:
- manufacturing, distribution or B2B services,
- based in the UK, perhaps with a significant export or overseas element,
- turnover up to £100m,
- profitable or loss making.
Interested parties should contact Chris Eynon
May 2011 Changing attitudes of Private Owners
With the extended Bank Holidays now largely behind them, owners of private businesses are taking stock of the economic and market conditions that lie ahead.
Many, especially those who are nearing the time when they had thought to exit, are beginning to ponder the possibility that, even if economic and market conditions do not deteriorate (which they could), they are not going to get much better and not soon.
They are starting to plan for "risk reduction" by harvesting their investment in their businesses now. Even though the cash they get won't earn much interest, they see it as preferable to hanging on in the hope that their business will improve and that the financial markets will also improve, lifting the multiples on which companies are sold. Some owners have been hanging on for conditions to improve since the economic turmoil started in 2007/2008 and are now well past their original planned "retirement" date.
Some are considering a partial exit whereby they sell but stay with their business and retain an ongoing minority stake. This allows them a "second bite of the cherry" by benefiting from any performance upside that is realised in the following few years.
March 2011 EcoReports for Sale
OD has been mandated to find a buyer for EcoReports - a comprehensive cloud-based system with on-line tools for Organisations and Individuals to measure, manage, communicate and compare their Carbon performance. The system is believed to be unique in the UK.
It acts as an environmental information exchange and has online software modules / tools for calculating, logging & tracking, comparing and reporting Carbon Footprints and Carbon Balance improvements.
EcoReports also provides Individuals with Environmental "Facebook"-type networking facilities.
Interested parties should contact Clive Booth