£1m+ ValueBuilder Case Study – Mid-sized business

Valuation improvement VB2
The situation
The owners of a £120m revenue business wanted to exit. The business was on the verge of failing from over trading and had a valuation of £2m as valued by a third party. The owners wanted to increase this valuation significantly.
What we did
  • An immediate focus on working capital management to generate cash, adding £15m+ to valuation
  • Amended the business model to focus on higher margin work, increasing gross margin by 30%+
  • Improved the profitability of a high value contract by more than £1m per annum
  • Invested in the capability of the business – staff, processes and systems – improving the certainty of future profit 
The outcome
The valuation increased to over £25m in 30 months as valued by two top ten accountancy firms. The owners were delighted and could start looking for potential buyers.
Andrew, MD: ‘The results are truly remarkable’
The situation
The owners of a £120m revenue business on the verge of failing had a valuation of £2m per a third party valuation. The owners wanted to exit with a better valuation
What we did
  • An immediate focus on working capital management to generate cash, adding £15m+ to valuation
  • Amended the business model to focus on higher margin work, increasing gross margin by 30%+
  • Improved the profitability of a high value contract by more than £1m per annum
  • Invested in the capability of the business – staff, processes and systems – improving the certainty of future profit 
The outcome
The valuation increased to over £25m in 30 months per a top ten accountancy firm valuation. The owners were delighted
QUOT-SUNSET-V2

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