Albert Goodman, a member of The Corporate Finance Network, with eight offices across South West England, has successfully advised the shareholders of an building and mechanical services on its successful sale.The business, run by four working director shareholders, were looking to exit the business which would have required a wholesale change in management in the majority of circumstances. The working director shareholders were remunerated by a mix of salary and dividends and after adjusting earnings for the market rate of services provided by the shareholders, the adjusted earnings were modest.
The Albert Goodman team, led by Neil Hutchings led their client throughout the entire process. Work began by identifying potential buyers in a confidential manner. Following meetings with interested parties and subsequent offers, Albert Goodman led negotiations to ensure the best offer was maximized.
The outcome of the deal was a successful result. A good earnings multiple was achieved with the full consideration being paid on completion. Two of the younger director shareholders have continued as employees of the business on significantly escalated salaries and 30 local jobs in the South West were protected.