What Constitutes Success?
In February 2021, the M&A market may have seen one of the most unexpected and unprecedented deals take place. The transaction was a £2million investment to acquire 100 percent control of a business which had been previously ‘fan-owned’ by a trust. However, the new acquirers also offered an opportunity for additional positive investment, with more funding, growth opportunities, and inevitably a large media platform.
Now, two years later the success of that investment has been realised. Whilst there has been success throughout – with a TV series, lucrative sponsorships, and a playable spot in a long-running video game franchise, for those following the investment there has been an even greater success; not only for the acquirers but also for those they promised to do it for. After all – it is a Hollywood story – of two actors who become owners of a football club and together promote it to the English Football League after 15 years in the lower divisions.
Wrexham AFC is undoubtedly a success story unlike any other in the M&A market.
It could be argued that for Wrexham AFC, its supporters pitch side, and further afield, that the success is actually in its promotion. The celebration of the owners, sharing in their club’s pride and happiness is the image of success. Perhaps that is subjective though.
For acquirers and business owners alike, success is subjective, individual, and personal. The motivations of all parties involved are different and, consequently, each party’s idea of a ‘successful transaction’ will also be subjective. However, all parties involved will want there to be synergy. For there to be a truly successful transaction for both parties, their motivations, corporate culture and other factors will need to be aligned.
A truly successful transaction will pave the way for a positive transition of a business to new owners and a smooth integration that delivers long-term benefits to the combined businesses. One of our previous blogs has touched on this in discussing how to avoid a post-acquisition culture clash. Find our more here.
Successful businesses value their staff, brand, reputation and customer loyalty. It can, therefore, be reassuring if an acquirer shares those values and agrees they will become one indicator of a successful sale. Another such indicator may be that the team within the business is retained; this is frequently a concern for business owners considering a sale.
From the outset however there needs to be a personalised approach to the sale of a business. In this approach there is discussion between the business owners and their advisers on the best possible outcome for a successful acquisition. For EvolutionCBS our own values of integrity and uncompromising standards have delivered exceptional results for every Client; every transaction the team works on will be different – and so will our approach.
Success is subjective – and the definition of a successful transaction will be different for each business – but it is still achievable. Our tailor-made approach recognises this but also brings a degree of objectivity into the discussions, which is based on more than 12 years of successful dealmaking.
EvolutionCBS prioritises this with a low volume, high touch approach to deliver a truly exceptional level of service. Service that ensures the success of a sale is the best outcome for you and your company.
Several of our Clients have expresses their views on what they considered to be successful outcomes here. If you would like confidential advice about selling all or part of your business, please call us on 0118 959 8224 or email info@evolutioncbs.co.uk
As a long-established premium provider of business sale advisory services to UK businesses, EvolutionCBS offers business owners a complimentary and confidential discussion on how their specific objectives could be met and provide pragmatic, practical advice on how to begin preparing both themselves and their businesses for future sale or investment.
EvolutionCBS works with owners of UK businesses in any sector, finding buyers from around the world through highly targeted research and supporting clients with dedicated Director-led teams, at every stage of their journey to a successful sale or investment.
If you are an owner or shareholder of a business and would like a no-obligation consultation on the sale of all or part of your business, please email: info@evolutioncbs.co.uk or contact us on Tel: 0118 959 8224.