ICON66 – Volume 5
Volume 5
Contents
Welcome – Success Can Be About Who You Know
Show Me The Exit – Delivering Success
Timescale – From Engagement To Exit
Breakfast Interview – Brian Parker, Head of M&A at ICON
Maximising Value – 7 Key Bear Traps
What Is Your Business Worth – Getting The Max!
ProjectLink Motivation – Sold To The Grass Roots Group Plc
Cleartone Telecoms – Sold To Management Buy-In Team
Welcome
Success Can Be About Who You Know
When we set up ICON Corporate Finance nearly 5 years ago we were committed to the idea of offering a high quality corporate finance advisory business focused on the technology sector. While there were moments in 2002 when we questioned that commitment, we have remained resolute in our belief that there are still greater opportunities to start and build a high value business in technology than in any other sector.
Show Me The Exit
Delivering Success
Most vendors will only get one crack at selling a business. It’s clearly a very significant event in ones life and needs thorough planning and professional execution to ensure that you get the best possible deal. You wouldn’t sell your house to someone who just knocked on your door, you need to market it properly, create a competitive environment and manage the process to make the most from the sale.
Timescale
From Engagement To Exit
The corporate finance adviser will approach the list of potential buyers by personal contact or using a teaser (or one page summary) without disclosing the vendor’s name. The key is to drum up interest without compromising the confidentiality of the business. Only once a confidentiality document has been signed will the name of the vendor be revealed and the in-depth sales memorandum be distributed.
Forvus
Sold To RM Plc
Forvus is a leading supplier of statistical and data management services to the government sector with a turnover of £3m. The company was founded in 1985 and has a wealth of experience in data management, dissemination, statistical analysis and web based information systems. Major clients include The Teachers Training Agency and The Department of Education and Skills.
Breakfast Interview
Brian Parker, Head of M&A at ICON
How did you become Head of M&A at ICON?... I’ve earned my spurs by having nearly 20 years experience of the financial equity markets. Having qualified as a chartered accountant in the City in 1984 I’ve been involved in capital markets ever since. I was responsible for acquisitions at two high growth Plcs in the eighties and was personally responsible for over 15 purchases in the UK, USA and Europe.
Maximising Value
7 Key Bear Traps
1. Watch the birdie... Keep your eye on the business and keep hitting forecast numbers. The most common reason for purchasers chipping away at the price is that vendors don’t meet targets in the negotiation period.
What Is Your Business Worth
Getting The Max!
If you lined up ten potential purchasers and asked them to value a business you would get ten different answers. Essentially a business is worth a different amount to different people at different times, and the reality is that valuation is a lot more Art than Science.To get a full price you need competition. It’s only when you get purchasers into a competitive environment that you know the real value of your business.
ProjectLink Motivation
Sold To The Grass Roots Group Plc
Faster faster... Projectlink Motivation based at Teddington, London, was founded in 1984 by Richard Kirk and is the fastest growing full-service motivation house in the UK with a turnover of more than £40m. It provides incentive and motivation services and products to many of the leading companies in the UK such as British Telecom, Royal Bank of Scotland, Astra Zeneca, Nationwide, Lloyds TSB, Abbey National, MFI and Oracle.
Events
ICON is one of the UK’s leading independent corporate finance houses. Over the last few years we’ve helped numerous entrepreneurs maximise value on the disposal of their businesses. Our seminar programmes bring together speakers from some of the UK’s top companies with leading-edge experts in the fields of M&A and venture capital.
Cleartone Telecoms
Sold To Management Buy-In Team
Cleartone is a designer, manufacturer and supplier of mobile radio communications equipment, principally for the emergency services. The product range includes VHF/UHF handheld, mobile and fixed equipment operating in all frequency bands, as well as the new TETRA digital mobile radio products that are specifically aimed at the ‘blue light’ markets.
