Building scale before pursuing an exit
Approaches from larger private equity buyers prompted an investor to consider selling its specialist construction and facilities maintenance business. We helped the client assess whether to pursue an exit or build further scale first, and supported it in meetings with prospective PE acquirers. The decision was to continue with a buy-and-build strategy, with our support, and position the business for a future sale.
Was a sale at its current size the right next step, or could further development create a stronger exit proposition?
The investor had received approaches from larger PE buyers for its portfolio business. Those approaches created a reason to review exit options, but the client also saw an opportunity to increase the business’s scale through acquisitions.
We helped the investor weigh those alternatives and decide how to proceed. The resulting strategy aims to grow enterprise value to around five times its current indicative level before exit.
- Strategic options review
- Sell-side advisory
- Exit planning
- Buy-and-build strategy
- Acquisition support
Four steps, in order
The options review
We helped the investor assess the choices following the buyer approaches, considering an exit alongside continued ownership and growth. The review gave the client a basis for deciding whether to pursue a sale process. We also supported the client in meetings and negotiations with prospective PE buyers.
The case for greater scale
We explored the opportunity to build a larger business through acquisitions before going to market. This brought the potential for further value creation into the discussion alongside the immediate interest from prospective buyers.
The buy-and-build direction
We helped the client conclude that pursuing a buy-and-build strategy was the preferred next step. That decision established a clear direction for the business and shifted the focus towards growth ahead of a future exit.
Ongoing acquisition and exit support
We continue to support the client’s buy-and-build strategy, keeping the future exit objective in view. The aim is to strengthen the business and increase its scale before returning to the market.
Sell now, or build scale first
Approaches from larger buyers opened two routes. The investor chose to build scale through acquisitions and return to the market later.
The investor chose to build further scale before pursuing an exit, and our engagement continues in support of that strategy. It targets around fivefold growth in enterprise value by exit, with acquisitions intended to help build the scale that ambition needs.
Call us before, not after.
If this is the shape of what you need, we should talk. The earlier the call, the more we can add. The first conversation costs nothing.