AMS
Investors in SME's
Exiting a business - The basics
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Over 80% of UK businesses for sale do not sell within a 5 year period
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Exits need to be carefully planned, created and built, in order to be in the 20% of successful sales
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New buyers / shareholders are looking for specific requirements in a business
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Some of the buyers key requirements are the team, the systems, the processes and infrastructure
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But above all, new buyers value robust future revenue forecasts, cashflows and EBIT’s.
Exits - A live example exit
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Textile manufacturing – 2 owners in the business for over 20 years
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2019 Revenues £18m – EBIT £760k – best valuation in 2019 = £5 to £6m
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Early 2021 after working with AMS Invest,
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Revenues £30m
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EBIT £5.5m
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Cash Sale £53m
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Importantly, in addition to headline numbers, a complete revamp of systems, processes, team culture and infrastructure without which the numbers would not be sustainable.