Nutravet – Being prepared for sale adds real value

Being prepared for sale adds real value

Requirements

Continued growth year on year from a dedicated business model coupled with growing revenue and reserves had created a business with the potential for investment or purchase. 

Matthew (the owner) had a desire to drive the business to the next level which involved looking at sale opportunities and having the right accounting experts on hand to help with this process was crucial. Accountancy procedures, reporting and accurate forecasting all needed to be put in place to get Nutravet ready for the next level of growth and potential sale. 

Understanding the balance sheet is fundamental in a sales process, with every item needing to be accurate. Monthly working capital needs to be understood as it will form part of the final deal negotiation and how much working capital is to be retained in the business.

What we did

We have been working with the founder of Nutravet, Matthew Shaw since 2018. Initially the company did not have monthly management accounts. We helped Matthew incorporate monthly reporting, which started with the introduction of monthly stock count. They helped us to then ensure that the monthly margin was in-line with what Matthew was expecting from the mix of products sold during the month. 

Once we had a good grasp of the actual results, we were able to build a detailed three year financial model, built around each product which Nutravet sold.  This helped the corporate financier maximise the multiple for Matthew, given the business was continuing to grow.

Results

When the corporate financier was ready to start the sale process, all of the ducks were in already in a row  and the data was held within a data room where any anomaly had been ironed out or was explained.  

The business was marketed for sale late 2019, with several interested buyers building momentum in Q1 2020. COVID19 created a slight delay however, the business was very resilient and in July 2020, exclusivity with a buyer was granted and by September 2020, the deal was done and the due diligence was completed (both financial and legal) within four weeks where no issues arose. 

The deal was worth £33m to Matthew and we continue to work on driving the business forward today with Matthew and his team. 

Services Provided

  • STRATEGIC SUPPORT

    Consultancy, advice and support.

  • ROUTINE ACCOUNTING

    Profit and loss accounts, balance sheets and cash flow.

  • FINANCIAL MODELLING

    that integrated the P&L account, balance sheet and cash flow.

  • FINANCIAL MODELLING

    Set-up and monitoring financial performance across the business and setting up detailed three year forecasting projections.

  • BUSINESS RESTRUCTURING

    Streamlining business operations

  • BUSINESS RESTRUCTURING

    Streamlining business operations

  • BUSINESS SALE SUPPORT

    Guidance and support throughout the transaction and due diligence process.