Sold for 240x Multiple of Profit During the Pandemic
Team Lead | Scope Of Work |
Jacob Aldridge | Strategic Review |
| Revenue Growth |
| Business Exit Sale |
3 years after taking a new CEO, this trade business serviced more than 20,000 homes per annum.
Having clearly staked a market position as the reliable, and more expensive alternative to the larger, cheaper providers, our client was well placed to achieve future growth.
Our Mission when the pandemic hit was to review the business to cut costs and develop resilience; instead, we recommended a strategy of aggressive market growth to seize the opportunity.
Our Approach has seen the business grow revenue by more than 500%, expand into 3 new markets (including international expansion), and achieve an exit for the founders of $5.8 million.
CHALLENGE | OUTCOME |
The COVID-19 Recession and local legislation changes created a lot of volatility in the industry. | We helped the founding owners clarify their commercial vision, which included a sale in excess of $4 million. We then leveraged the volatility to rapidly and profitably grow the enterprise, while courting potential acquirers and negotiating a successful exit. |
KEY POINT #1
So strong was our strategic growth plan that the new ownership team have retained our services to help execute the international expansion, which is expected to see the business grow beyond 50,000 homes in 2022/23.
KEY POINT #2
We were able to successfully communicate the value of the intangible assets unique to the business, not only those tangible assets on the Balance Sheet, creating a record-breaking valuation multiple even in this established industry.
"I was reluctant to sell our business because I assumed nobody would pay the valuation we needed. Jacob and his team demonstrated how to rapidly improve a business value, over and above revenue and profit growth, allowing us to accept an offer years earlier than we could have hoped for."
We identified and forecast more than 15 key indicators for profitable growth.
RESULT
Was able to negotiate terms with the successful buyer which met their needs, and therefore increased the strategic valuation they placed on the company.