In short: a Manchester design and environmental consultancy worked with MAP for more than eight years, building clean monthly management accounts and a close relationship with a named Finance Partner. When the right buyer approached, due diligence found nothing of note. The owners completed a trade sale nine months after the first conversation, kept every member of staff and, a year on, still run the business as their own.
Key results at a glance
| Client | Design and environmental consultancy, Manchester |
|---|---|
| Sector | Planning, urban design, landscape architecture, ecology and biodiversity net gain |
| With MAP | More than eight years |
| Services | Bookkeeping, management accounts, year-end accounts, Finance Partner support through the sale |
| Outcome | Trade sale to an acquisitive group, nine months from first conversation to completion. No staff lost and no change to the owners’ roles |
The starting point
The consultancy wasn’t a digital agency, and its owners weren’t its founders. They joined in its early years, took it forward and grew it year on year. Both came from a large PLC, where monthly finance reviews could be brutal. They wanted the discipline without the baseball bat.
Their previous accountants were competent but distant. They handled year-end accounts and payroll, and not much else. Day to day and month to month, the owners were largely on their own.
An introduction to MAP led to a meeting and a quick decision. MAP was working almost entirely with digital agencies at the time, but agreed to take them on.
“We needed a more responsive, flexible conversation around our finances. We’ve always had that.”
What MAP did
MAP moved the business onto Xero early, so the owners and MAP were working from the same numbers. From there, the service was built around what the business needed at the time, not a fixed package.
- Management accounts shaped to the business. Profitability is reported for each of its seven teams, with gross profit percentages. One version goes to the owners and a lighter one goes to team managers.
- Flexible scope. Services such as supplier payments have been switched on, off and on again as the in-house team changed.
- A named Finance Partner. Monthly reviews with someone who knows the business well enough to talk about ecology and biodiversity net gain.
“We’ve got seven teams, and each month we want to know how profitable every one of them is. We don’t want anything hiding.”
The reporting is still being refined today. That steady, month-by-month discipline turned out to matter most when a buyer came calling.
The sale: third time right
The owners never went looking for a buyer. Over roughly 18 months they had two approaches, and both reached formal offers. With their MAP Finance Partner and their lawyer, they turned both down. The price, the culture or the fit wasn’t right.
The third approach felt different from the first conversation. Because of the first two, much of the groundwork for due diligence was already done.
The buyer’s advisers were large and corporate, and they dug hard. They found nothing of note.
“We were in good shape. The management accounts and year-end accounts were all in order. Whatever they asked about, we had the answer, and if we didn’t, we checked it with our Finance Partner and our lawyer.”
The business kept growing through the process. Each month the numbers were updated, and the deal improved with them. The buyer had hoped to complete in three months. It took nine, and all that time the owners were running the business and keeping the deal confidential from their team.
MAP’s Finance Partner and the owners’ lawyer worked closely throughout.
“Relationships are everything. It’s so much easier when everyone is genuinely working together.”
A year on: still their business
The owners’ roles haven’t changed and no one left because of the sale. The group buys successful, well-run businesses and lets them carry on.
The monthly routine is simple. The owners review the numbers with their MAP Finance Partner, then spend half an hour with the group’s business partner.
“Day to day, we still feel like it’s our business. Sometimes I completely forget we’re part of something bigger.”
Their advice to other owners
The owners boil it down to three questions to ask before engaging with any approach.
- Why? “The answer shouldn’t be ‘because somebody approached me’.”
- Why now? Think about your stage of life and your own exit plan, and weigh up the other options, such as a management team or a buyout.
- Is it the right fit? “If you get the feeling it isn’t a good fit, it probably isn’t.”
“If you can’t answer all three positively, don’t waste your time. And don’t be greedy. If you believe your company is worth a certain amount, you need to be able to back it up.”
Questions owners ask about selling their business
How long does it take to sell a business?
In this case, nine months from the first conversation to completion. The buyer had hoped for three. Because the business kept growing during the process, the numbers were updated each month and the deal improved with them.
What do buyers look at in due diligence?
The buyer’s advisers tested the financial records in depth. What made the difference here was that the management accounts and year-end accounts were up to date and in order, and the owners could answer questions quickly, checking anything they were unsure of with their Finance Partner and their lawyer.
Should you accept the first offer for your business?
Not necessarily. These owners turned down two formal offers because the price, the culture or the fit wasn’t right. Those earlier processes also meant much of the due diligence groundwork was already done when the right buyer arrived.
How do you prepare a business for sale?
Start years before you expect to sell. Keep monthly management accounts that show where profit is made, keep year-end accounts in order, and work with a finance partner who knows the business well enough to answer a buyer’s questions.
Would you be ready if someone called?
This sale started years earlier, with clean monthly numbers and a finance team that knew the business. If you’re thinking about selling, or just want to be ready when an approach arrives, book a discovery meeting with MAP about getting your finances in shape. You can also read more about how we can help you.
Further reading
