Case studies
Strategic Acquisition of a Consultancy by a UK-based Charity
The Challenge
A UK-based charity sought to expand its sector offering by acquiring a complementary consultancy business. Identifying the right acquisition target was just the beginning; determining the appropriate valuation and deal structure posed significant challenges. The charity needed to ensure that the acquisition not only aligned with its mission but also provided tangible benefits without exposing it to undue risks.
The Solution
Engaging with us, the charity embarked on a journey to navigate the complexities of valuation and deal structuring. Collaborating closely with their financial, commercial, and legal due diligence partners, we conducted a thorough assessment of the acquisition target’s commercial potential and associated risks. Leveraging our expertise and insights into prevailing market conditions, we proposed a suitable valuation range that balanced opportunity and prudence.
Beyond valuation, we crafted a tailored deal structure designed to incentivise the target company to realise its full commercial potential while safeguarding our client’s interests. This included provisions for initial, deferred, and bonus considerations, each tied to specific business performance thresholds. By carefully aligning incentives with outcomes, we ensured that both parties were motivated to drive mutual success.
The Result
Thanks to meticulous planning and strategic foresight, our client successfully completed the acquisition of the target company earlier this year. By integrating the consultancy business into its sector offering, the charity has expanded its capabilities and enhanced its ability to deliver impactful solutions to its beneficiaries. The structured deal not only mitigated risks but also provided a framework for sustained collaboration and growth. As a result, the charity is well-positioned to achieve its mission while driving positive change in its community.
