Albert Goodman, a member of The Corporate Finance Network, with eight offices across South West England, has successfully advised the shareholders of an e-commerce on its sale to a strategic buyer.The Albert Goodman team, led by Neil Hutchings were approached by the shareholders who shared some of the challenges the business faced. The business was loss making, the shareholders were key workers within the business and the relocatable business was tied into significant lease arrangements.
Neil and his team managed to provide a cost-effective solution to "test the market" by confidentially approaching a range of strategic buyers within the industry. The result of the process is that a highly strategic buyer met with the shareholders and put in a strong offer to acquire the business.
The directors received full repayment of their loan accounts and in addition, a good earnings multiple was achieved, along with an attractive earn-out element. Virtually the full consideration was payable on completion and one of the working directors has joined the acquiring business on a significantly escalated salary.