Sedulo were approached by an existing client with £1m turnover in the print industry to purchase a similar business with revenue of £4m.
The advisory role undertaken involved deal negotiation to agree Heads of Terms, corporate structuring and a detailed financial due diligence role.
The agreed terms meant that the deal could be fully financed through the target’s existing balance sheet and projected cash flows, thereby reducing the risk for the acquiring entity.
The £3m consideration was structured by cash existing in the company bank account, introducing debt via Invoice Factoring and the remainder being deferred in line with projected cashflows of the company.
Recommendations contained in the 40 page due diligence report included the retention of key staff identified throughout the process and that a new more regular pattern of invoicing was adopted post completion to ease cash flow.