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To find out more about the Buyside Process, and how we not only advise but acquire ourselves, watch our case study here :
Success in Practice Turning Strategy into Success
We do not just advise on deals, we do them ourselves. The following is a real world example of one of our acquisitions: The Kitchen Equipment Company Limited (“KitchEquip”).
In September 2023, we acquired KitchEquip. The company is a Commercial Kitchen distributor that works with Blue Chip customers, government bodies, sports stadia and independent hospitality venues. As a team, we have experience in acquiring companies in this sector so naturally it made sense to ‘stay in our lane’, we bought the company to form part of a larger group as a buy and build strategy. We found the business through one of our trusted sell side advisors and the company fit our requirements. As part of our process, we signed an NDA and requested information on the business including financial and commercial information to form our valuation of the company to structure an offer. When evaluating a business, we look for management structures, the business model and key revenue drivers and perform a valuation exercise of which there are many options at our disposal, we opted for a multiple of profit and and on a no cash, no debt basis. The deal structure was 80% upfront which was made up of cash invested by us, the shareholders, debt funding in the form of an invoice finance facility and a cash flow loan alongside deferred consideration to be paid over a three year period, we negotiated working capital requirements, a suitable handover period, the deal structure, price and target completion date. We retained key management and we also acquired the property as part of the deal. Since acquiring the company, we have implemented better financial reporting, streamlined operations, added new members of staff to our sales team and increased our profit margins.
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