Case studies

Growing through acquisition at a UK charity

The Challenge

A UK-based charity sought to expand its service offering through the acquisition of a consultancy business. While identifying the right target was a crucial first step, structuring a deal that ensured long-term value and mitigated risk was equally critical.

The charity faced several key challenges:

  • Determining a fair and commercially viable valuation for the acquisition
  • Structuring the deal to balance up-front investment with performance-based incentives
  • Ensuring that the transaction aligned with the charity’s mission and financial sustainability

 

With no prior experience in acquiring commercial consulting firms, the charity needed expert guidance to navigate the complexities of valuation, risk assessment and deal structuring.

The Solution

Garwood was engaged to provide commercial and strategic support throughout the acquisition process. Working closely with the charity’s financial, legal and due diligence teams, we conducted a detailed commercial assessment of the target company, analysing its revenue model, market positioning and future growth potential.

Using our understanding of the consulting sector and market conditions, we developed a valuation framework that balanced opportunity with prudent risk management. Our approach enabled the charity to negotiate terms that reflected the target company’s commercial potential while safeguarding its financial position.

Beyond valuation, we played a key role in structuring the deal to incentivise long-term success. The proposed structure incorporated:

  • Initial consideration to secure the transaction while ensuring commitment from the sellers
  • Deferred payments linked to key performance milestones to reduce risk
  • Bonus considerations tied to specific revenue and profitability targets to align incentives

 

By carefully structuring these elements, we ensured that both parties were motivated to drive mutual success while protecting the charity’s financial position.

The Result

With a structured and well-negotiated deal in place, the charity successfully completed the acquisition in 2022. The consultancy business is now fully integrated into its sector offering, enhancing its capabilities and expanding its impact.

The structured deal has provided a framework for sustainable growth, ensuring that the acquisition delivers long-term value without exposing the charity to unnecessary financial risks. The charity is now positioned to further its mission while leveraging the expertise and commercial strengths of its newly acquired consultancy.

Who worked on this project

Robert Garner

Partner
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