Buy and Build Ep 25: 3 Reasons the UK Acquisition Ecosystem is Different [For SMEs]
39 snips
Feb 28, 2022 AI Snips
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Diversify Deal Sourcing Methods
- Use a mix of broker listings, proprietary outreach, and buy-side advisors to source deals effectively.
- Relying on only one method limits opportunities and prolongs the search process.
High Multiples in UK Market
- UK small business EBITDA multiples are generally higher than US, especially for recurring revenue sectors.
- Private equity drives up prices by targeting contracted revenue, making deals tougher for individual buyers.
Reverse Engineer Target Business Size
- Reverse engineer your target business size based on achievable debt levels and multiples.
- Avoid looking at deals that don’t fit your financial criteria to save time and avoid frustration.