- Original Poster
- #1
Hi all.
Just looking for some thought and ideas. We have had preliminary discussions with a client of our (who are a much large firm) to go into some kind of partnership/or have a buyout etc. Currently we undertake work for them but they would like to have full control of what happens in our fabrication shop. I say full control, its more that they want to be able to dictate work schedules / times etc as well as costs. They also want to enter new markets which we are currently in so we would be an instant in for them and we would hit the ground running.
However I am a sole director so don't want to give up full control in a full buy out and end up being an employee, that is not for me. I also have a 'business partner' who has been with me from the start and sees himself as a 'partner' although he is not on paper as I was the only one who have money to make the startup happen, so I took 100% control and he has always been a paye employee. Although most decisions are discussed between us both before being made.
A partnership would help us as a large cash injection would allow us to go to the next level but the other firm wanting to come into our market would be a conflict. They have already said that if anything happened then moving forwards their company would be the 'brand' and would be what went to market and we would announce a 'merger etc' to the market to allow a transfer of reputation. One other main aspect is that our business is all based around me. Without me and my input there is no business, so realistically they are buying me.
So the main question is, how do I pitch myself and our business value-wise?!
At the back of my head I think what I want is a full buyout/merger and in return I would get a stake in their business plus a high salary. However I think they may say that is a non-starter as they are a 15year old business with £300k+ increase in overall asset value over last 12 months to roughly £2.4m (accounts shareholder value) whereas we are 2 years old, grew from £300k in year 1 to £1.5m turnover in year 2.
Any thoughts, ideas, pointers etc would be most welcome
Thanks
Just looking for some thought and ideas. We have had preliminary discussions with a client of our (who are a much large firm) to go into some kind of partnership/or have a buyout etc. Currently we undertake work for them but they would like to have full control of what happens in our fabrication shop. I say full control, its more that they want to be able to dictate work schedules / times etc as well as costs. They also want to enter new markets which we are currently in so we would be an instant in for them and we would hit the ground running.
However I am a sole director so don't want to give up full control in a full buy out and end up being an employee, that is not for me. I also have a 'business partner' who has been with me from the start and sees himself as a 'partner' although he is not on paper as I was the only one who have money to make the startup happen, so I took 100% control and he has always been a paye employee. Although most decisions are discussed between us both before being made.
A partnership would help us as a large cash injection would allow us to go to the next level but the other firm wanting to come into our market would be a conflict. They have already said that if anything happened then moving forwards their company would be the 'brand' and would be what went to market and we would announce a 'merger etc' to the market to allow a transfer of reputation. One other main aspect is that our business is all based around me. Without me and my input there is no business, so realistically they are buying me.
So the main question is, how do I pitch myself and our business value-wise?!
At the back of my head I think what I want is a full buyout/merger and in return I would get a stake in their business plus a high salary. However I think they may say that is a non-starter as they are a 15year old business with £300k+ increase in overall asset value over last 12 months to roughly £2.4m (accounts shareholder value) whereas we are 2 years old, grew from £300k in year 1 to £1.5m turnover in year 2.
Any thoughts, ideas, pointers etc would be most welcome
Thanks
