Business Services
Whilst we specialise particularly in TMT and Human Capital we also have an excellent track record of advising on acquisitions, disposals and funding of a wide range of other service functions.
Many of our partners have owned or operated (and successfully exited from) businesses in the services sector. They have sat on the same side of the desk as you.
The Business Services Sector
Business services refers to all activities that support the operation of other businesses. By definition they are companies that do not have any manufacturing capability. They also include businesses that are consumer facing but do not do not create any physical products. They are crucial to the successful operation of the economy and provide some key benefits companies, such as cost reductions, streamlined operations and logistics, increased employee productivity and efficient sales and marketing.
Whilst Regent Evolution specialise particularly in Technology, Media and Telecoms (TMT) and Human Capital services we also have a track record of advising on many other transactions in the Business Services sector.
Our track record includes advising on complete transactions in the following sub-sectors of Business Services:
- Financial Services
- Marketing and Advertising Services
- Logistics and Transportation Services
- Facilities Management
- Customer Support and Call Centre Services
- Outsourcing Services
How do business services acquisitions work?
While the most commonly publicised Business Service M&A transactions involve well-known, large companies, the more frequently occurring deals take place between medium- to smaller-size businesses.
As with acquisitions in all sectors, Business Service acquisitions comprise transactions in which a company buys a major proportion, or all, of a target company’s shares. If the purchasing company acquires more than 50%—that is, a controlling portion—of the other company’s assets and stock, this gives the purchaser the ability to determine how to manage the acquired business without having to obtain approval from its other shareholders.
Company acquisitions can occur with or without the target organisation’s approval. If there is approval, a no-shop clause—a commitment to execute a deal—is frequently included in the transaction between the buyer and seller to bar the seller from soliciting a proposal to purchase from another interested party.
While the majority of acquisition deals for the most part involve mutual agreement and co-operation between the parties, and can thus be considered amicable, sometimes transactions take place in which the target company is firmly opposed or resistant to the transaction. A purchase made under these conditions would be considered a ‘takeover’.
On the other hand, a deal during which the buying and selling businesses combine into a novel company through mutual agreement is called a ‘merger’.
Before you make any decisions, you need to ensure whether your company – or the company that you are targeting – offers the right opportunity for investment.
How does our consulting offering help owners of Business Services companies?
Are you investigating the possibility of undertaking an M&A transaction in the services sector or considering an acquisition for which you need trustworthy advice?
Do you need help to obtain funding for a business which has very few tangible assets.
Are you looking to exit from a business in the services sector and need to establish a value for the business or prepare your company for an investment?
Many of our partners have owned or operated service businesses and have sat on your side of the desk. We can give you practical advise which is based on personal experience.
- What is the company’s growth potential in the market, and how scalable is its offering?
- How much of the market can it capture over time, and how rapidly?
- What is the quality of its earnings potential, and how predictable are its earnings?
- How innovative or unique are its offerings, and are there high barriers to entry?
- Does it have strong brand recognition—will its customers be willing to pay a premium, or will it be competing on price?
- What is the company culture of the business?
- What are the business’ talent acquisition and retention policies?
- How strong is the executive management team, how committed and experienced are they, and do they work well together?
- What are the capabilities and capacities of the company’s finance team?
- What is the composition, experience and state of its board, if it has one?
- Are board members predominantly independent so as to offer proper oversight and guidance?
- Does the business have a clear and well-defined long term vision and strategy for achieving its goals?
- What is the state of the company’s financials and how well does it keep track of its data?
- What is its compliance and due diligence track record?
- Does the organisation have sound operational policies, systems and procedures in place, especially for the purposes of accurate financial reporting?
- How adaptive and flexible is the organisation?
- What does the business’ competitive landscape look like?
- How does the business differentiate itself from its competitors?
- How does the company’s offering fit into global economic trends and meet current (and future) B2B/B2C customer needs?
- Does the company have appropriate tech security measures in place?
Regent Evolution is your merger and acquisition consulting partner. From strategy phase, to seeking a target business to merge with or acquire, and even the somewhat dreaded due diligence, we’ll get you to a lucrative sale through our business alchemy: you, and us, fusing to create something great.