CASE STUDY

Getting to “Yes"

Getting to “Yes"

Introduced by Michael Smith following a networking evening, in early 2016 ETL held a meeting with the owner of an electronics distribution company providing components to many of the major names in the aerospace and defence industries on both sides of the Atlantic. The company was a small but previously successful SME with a notable but declining order book.  The owner had built the business with his own hands over the previous 20 years but now, with the passage of time, wished to increase its worth over the next two or three years and then place it up for sale so as to turn his attention to private as opposed to business affairs.

As with many ETL assignments concerning ‘build & sale’ as a first step, in this case led by Adrian Jones and Jason Crabtree, ETL proposed a High-Level Business Review to more clearly understand the company’s circumstances and potential.  This the owner initially agreed to, but then changed his mind; consequently, the assignment did not go ahead.  However, that was not the end of the story because, later in the year, the owner approached ETL again, this time asking for assistance to sell the business immediately.

Following a review of the company and the market place, several potential purchasers were identified and ETL held discussions with them.  As a result, following appropriate due diligence by both parties, two potential acquirers made offers.  Unfortunately, the owner of the client company felt the sums involved were too low and, therefore, declined both.  

This resulted in the conclusion of the process, and that is where the situation stands today.  A frequent and understandable example of where an owner who has devoted a substantial amount of time and money to his business now finds that, in an increasingly competitive market place, the value he places on his own past work is not necessarily equal to the value the potential acquirer sees in today’s resulting business.  

Nevertheless, the reality is that a sale will have to take place in the not too distant future, and it is interesting to note that the recent recruitment of a new sales manager may be sufficient to improve the order book to the point where the owner and a potential acquirer can reach a meeting of minds on price.  In the meantime, ETL remains on hand to assist the sales manager on the one hand and, on the other, the owner and that potential acquirer both say “Yes”.

Mergers, Acquisitions & Disposals Case Studies

Asian Acquisitions

In the late Spring of 2018 ETL was asked by one of our established European clients to help them undertake an acquisition in Singapore, a global finance, commerce and transport hub and, with the latter in mind, a focal point for aviation and aerospace in Southeast Asia.

The End Goal

Later this year, having started in 2016 to assist a very high-quality machining company transit a temporary aerospace downturn and, thereafter, grow substantially in terms of increased customers, orders, sales revenue and profit, ETL, led by Jason Crabtree

Search, Advise & Build

Because of the Directors’ deep knowledge of, and extensive contacts within, the Aerospace & Defence industries, plus personal business and financial responsibility at International Board level, ever since launching ETL in 2015 the Consultancy has been approached

Getting to “Yes"

Introduced by Michael Smith following a networking evening, in early 2016 ETL held a meeting with the owner of an electronics distribution company providing components to many of the major names in the aerospace and defence industries on both sides of the Atlantic

Due Diligence Support

One of the earliest assignments undertaken by ETL was occasioned by our considerable knowledge of the aerospace market, and our extensive connections with the private equity & venture capital industry.  The task was to identify, at a high level, the growth potential

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