Case Studies

Entrepreneurs Hub advises on the sale of Acheta Consulting Limited to Kiwa Group

by Malcolm Murray
Posted 2019

Type of business:
Independent inspection, training and consultancy services for pest control
Location:
Somerset, UK
Sale Value:
Undisclosed 

Situation

Acheta Consulting Limited provides independent pest control consultancy to clients across the UK. Their services also include training, e-learning, inspections, data analysis and contour mapping. Entrepreneurs Hub was initially engaged on a growth program prior to taking the Acheta business to market. They improved the organisation of the company by encouraging regular board meetings, streamlining budgets, and implementing controls around the business. EH worked with Acheta for a number of years to prepare them for their optimum sale, which was then achieved.

Requirements

  • Refining Acheta’s structure, business processes, strategies, policies and protocols to cultivate growth with an appropriate future buyer in mind
  • Discerning how to take advantage of the growth potential in the Agri food industry
  • Taking the reshaped and more robust business to market
  • Identification of an organisation with the ability to take Acheta’s services to a wider audience
  • Location of a buyer with shared values of professionalism and technical excellence
  • Guidance with each stage of the pre-sale and sale process, including valuation, marketing, due diligence, negotiation, and agreement of the ultimate deal

Solutions

Entrepreneurs Hub team helped Acheta accomplish a rewarding deal using the following steps:

    • Pre-sale growth program to create a more advantageous position for Acheta
    • Devising a comprehensive tailored plan for exit
    • Researching and shortlisting suitable potential acquirers
    • Formulation of an Information Memorandum, teaser letter and presentation to heighten acquirer interest in the business
    • Anonymous approach to approved targets to ascertain interest
    • Establishing a Non-Disclosure Agreement (NDA) to enable the safe release of the Information Memorandum to client-approved targets
    • Set up of moderated meetings between a top Deal Director from Entrepreneurs Hub and interested acquirers
    • Assessment of multiple offers to establish the most suitable buyer, which led to further negotiations to maximise quality and level of offers
    • Ensuring and facilitating Heads of Terms
    • Finalising a transaction, whereby Acheta was sold to Kiwa Group, one of the global top 25 testing, inspection and certification (TIC) consultancy and training organisations

The Team

Malcolm Murray, Director and Co-founder

Malcolm is an established corporate finance consultant, entrepreneur and accomplished motivational speaker who has who has had direct involvement in supporting the sale of 45 businesses. He leads regular seminars such as ‘Preparing and Selling a Business the Right Way: Vital Steps in Building Value’. He has consulted with over 1,000 business owners considering selling companies of all sizes.

  • 30 years’ experience in business growth roles in the Mergers & Acquisitions (M&A), Business Consultancy, Manufacturing, Engineering, Information Services, Automotive, Retail and Construction sectors
  • Former Senior Manager and Group Board Director of a leading international M&A business
  • A founding member of a successful company with James Caan (ex-Dragons’ Den), CEO of Hamilton Bradshaw Private Equity (HBPE)
  • Co-founder of FI, an Information Service for the Engineering and Manufacturing sectors, which he grew from 4 to 165 people, operating in the UK, the USA and Germany (27% for $10.8m)
  • Active community volunteer and trainer for Basingstoke Street Pastors and Ascension Trust

Andrew Shepperd, Director and Co-founder

Andrew is a successful entrepreneur, mentor and lecturer. He is highly experienced in both buy and sell-side transactions, including Intellectual Property focused sales. He oversees the Entrepreneurs Hub deal-making team and has first-hand knowledge of post-acquisition integration as well as selling and acquiring businesses. Andrew has over three decades’ commercial leadership experience.

  • Former MD of Avaya and Azlan and main board member of TechData UK
  • Lecturer on M&A and Investment, and Advisory Board Member of the Imperial College London Global MBA and Entrepreneurship MSc programme
  • Mentor to M12, Microsoft Ventures’ Accelerator and to the Swiss Embassy in London
  • Has coached over 100 organisational leaders on communication strategy, turnaround, profit & revenue growth, and business operations, including not-for-profit organisations such as Buckinghamshire County Council and the UK National Police College
  • Leader of 5 organisational turnarounds for Nasdaq and NYSE quoted companies

Results

  • Strategic pre-sale growth had optimised Acheta’s prospects and value when the time came to go to market
  • 100% of the shares in Acheta have been acquired by Kiwa, a company with an outstanding profile and reputation in this sector
  • Acheta’s expertise and position in the public health, food storage and pest management marketplace has promising synergies with the Kiwa Agri food service offering
  • Kiwa has the vision and scope to take Acheta to a bigger customer base because they deliver tangible solutions in compliance, testing, inspection, certification and consultancy in over 40 countries
  • With a greater international reach, both parties can now capitalise further on the growing trend around food quality, and traceability throughout the whole food supply chain – from farm to fork
  • Known for its technical rigour, reliability and industry knowledge, Kiwa will continue to embody the values Acheta takes pride in
  • Aligned values of technical excellence and professionalism will create a positive and productive culture, allowing everyone to thrive

Paul Brown, CEO, Kiwa:

“I am delighted to welcome the Acheta team to Kiwa. Acheta’s expertise and reputation in the marketplace complements our Kiwa Agri Food service offering perfectly. The potential synergies from this joining of forces are many, as are the opportunities for innovation, growth and an expanding UK and international presence.”

Quote Icon
We engaged Entrepreneurs Hub back in 2014 to assist us with properly preparing and positioning the business for sale, using their ‘preparation for exit’ process. Following that, we commissioned them to market our business for sale. We have no doubt that partnering with them added significant value to the business and helped us achieve our goal. We met with a number of advisers, but we felt confident that the Entrepreneurs Hub team, and their approach to preparing and selling a business, was what we needed.
John Simmons
Managing Director, Acheta

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Darrel Jones
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Entrepreneurs Hub team were fantastic. They put in a tremendous amount of effort throughout the process but especially towards the end once we had interest from a few parties, several of whom were overseas, Andrew was putting in long phone calls late into the night as he negotiated on our behalf to get the best possible terms. Once we accepted an offer, things intensified even more as we went through due diligence and were still negotiating details of the financials. Entrepreneurs Hub were there guiding us throughout the process and I really felt we were working together as a team. We could never had sold the business without their help. Even the company that bought us and had experience of several previous acquisitions complemented us on how professional and organised and easy to deal with our advisers were that made the whole process very smooth
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