Sell My Engineering Business | KBS Corporate

Sell My Engineering Business

We have more than a quarter of a century’s experience in helping business owners to sell their engineering companies. If you are thinking about how to formulate an exit strategy from your engineering business, you can find the key information and guidance here.

How to sell my engineering business

Firstly, remember that selling your engineering company is not something you need to do alone – the expertise of the UK’s leading business sales adviser, KBS Corporate, is available for you to call upon.

The initial step will be to establish exactly what you want to achieve, both financially and from a lifestyle perspective, through the sale of your business. Do you want a complete exit from the company as soon as the deal is rubber-stamped, or to engage in a transition handover period to the new shareholders, or would you like to stay on longer term in an executive role but without the responsibilities of ownership?

A part of making that decision is how much capital you would like to realise from the sale of your engineering business, which influences the valuation that will be placed on the company.

Once it has been concluded the timing is right to test the market, we can help you to identify the right buyer for your business and assist with all aspects of the sale to ensure it proceeds as smoothly as possible – and most importantly, delivers the outcome you are looking for.

Who should I sell my engineering business to?

There are various different exit options and types of buyer available for consideration when you are looking to sell an engineering business.

Additionally, you needn’t restrict yourself to believing only a domestic acquirer would be interested in your company – our reach extends way beyond the shores of the UK for we frequently demonstrate the ability to utilise our impressive network of global contacts.

Trade buyers may be seeking to strengthen their position in the market by acquiring another engineering business, eyeing the synergistic value of the opportunity.

Private equity investors might want to diversify their portfolio, giving you the chance to position your engineering company and its management team alongside a seasoned investment partner.

And you may also want to join us in thinking outside the box and considering additional routes including family offices, Management Buy-Ins/Outs and Employee Ownership Trusts, plus other types of alternative investment vehicles.

Why sell my engineering company?

Although you may be thinking it is too early to sell your engineering business – particularly from a personal perspective – market conditions may be indicating otherwise.

If engineering companies are in strong demand from acquirers, especially those who are prepared to pay high multiples, it would be shrewd to investigate the potential for a sale, even if you did not feel entirely ready to make that step. It may simply be the ideal time to maximise the company’s value.

Alternatively, of course, you may be keen to retire, embark on a less stressful lifestyle or launch a new project with the proceeds from the sale of your engineering business. Whatever your motivation, we can help you to achieve your goals.

How to prepare to sell my engineering business

We recommend taking the following measures to ensure you are in the best shape possible to sell your engineering business.

Get your finances in order
Your company’s buyer will undertake due diligence, and when that occurs you need to ensure not only that the financial outlook presents the rosiest possible picture but also that all records and accounts are accurate, up-to-date and complete. Doing that at the outset of the business sale process will save time further down the line and eradicate stress.

Gather business assets (including intellectual property)
Ensure the infrastructure of your business is functioning to best effect, i.e. that the performance and appearance of machinery, equipment, buildings and branding materials are at their optimum level. Also, be certain you have ticked all the right boxes in terms of legislation for patents, trademarks, licences, copyrights, trade secrets and other forms of IP.

Settle any debts
If you were trying to sell your engineering business with debt, it could affect not only how much a buyer would be willing to pay for the company but even whether they would want to proceed at all. The debt would be factored in by the acquirer and offset against the eventual sale price.

Focus on forecasting
A business that has a sound strategy attached to it for future growth is sure to be more attractive to a buyer than one with uncertain financial projections. Exhibit the longest established relationships you have with clients and stable revenue streams that display the business has solid, healthy foundations for further extension.

Establish an accurate business valuation
Driving maximum value for your company is something we are able to help you greatly with, but we will also encourage you to be realistic. While you deserve to be fully rewarded for the work you have put into your business, you should be aware the company is worth only what someone is prepared to pay for it and pricing yourself out of the market is not advisable.

Expert support to sell my engineering business

The engineering sector is one in which we have continually shown our expertise in delivering the outcomes our clients were seeking. Our reputation is based on being trusted to help business owners to exit their company in a timely, harmonious manner, setting them up perfectly for the next step they want to take.

Here are some examples in which we have advised clients to sell their engineering business:

KBS advised on the sale of Connect Precision Ltd

A Yorkshire-based specialist in precision CNC machining and wire cutting, serving clients in industries such as automotive, aviation, defence and warfare.

TGM Industrial Group was identified as a suitable buyer, having acquired through KBS previously as part of the group’s ongoing expansion strategy.

Read more about the sale of Connect Precision here: Yorkshire-based CNC specialist connects with TGM Industrial Group

KBS oversaw the sale of Phoenix Engineering Systems Ltd

A Yorkshire-based leading performer in the international marine seismic exploration market, offering a complete design, manufacturing and maintenance solution.

Shearwater GeoServices was identified as the eventual acquirer, a company with its head office in Norway and which is an innovative global provider of 3D and 4D marine seismic data, imaging products and data processing software. 

Read more about the sale of Phoenix Engineering Systems here: KBS Corporate dives into marine exploration market to oversee sale

KBS advised on the sale of Metaltech Precision Engineers Ltd

A Sussex-based provider of turnkey precision CNC machining and fabrication solutions to a variety of commercial sectors.

The company was bought by Unibloc Hygienic Technologies, having attracted 60 interested parties across trade and private equity in the UK and overseas.

Read more about the sale of Metaltech Precision Engineers here: KBS Corporate Oversaw the Sale of Metaltech Precision Engineers Limited

RECENT BUSINESS SALES IN THE ENGINEERING SECTOR

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Completed Sale

Black & White Engineering Ltd

KBS Corporate has overseen a major investment into Black & White Engineering from private equity company Waterland.

Black & White, founded in 2007, is a multi-award-winning global engineering consultancy which works with 110 clients across 23 countries, delivering innovative and high-quality MEP (mechanical, electrical and plumbing) design engineering solutions for a wide range of industries.

With offices in Europe, the Middle East, Asia and Australia, and a growing team of more than 500 employees, Black & White has become established as a premier engineering design consultancy to top-tier data centres, providing cutting-edge solutions that are efficient and cost-effective with a strong focus on sustainability.

Waterland’s investment represents an exciting opportunity to further enhance Black & White’s impressive track record and bolster its global expansion ambitions. With Waterland as a strategic partner, Black & White aims to broaden support for customers across new geographies and through widening its engineering offering with new specialisms.

Mick Cairns, founder of Black & White, will remain integral to the business, continuing as CEO alongside the existing leadership team who are all remaining with the company following the partnership with Waterland.

“Black & White has grown hugely since the business was founded and I could not be prouder of our team, who have helped us to reach this huge milestone in our journey,” said Mick.

“We are delighted to be partnering with Waterland and leveraging their track record of international growth and acquisition experience. We are looking forward to supercharging the momentum we have built, with Waterland acting as a hands-on partner which supports our vision and ambitions.”

Wendy McMillan, Partner at Waterland Private Equity, added: “Mick Cairns is an impressive entrepreneur who has built an outstanding business.

“We look forward to supporting Mick and the senior team in this next chapter and will continue to back their philosophy of investing in people and working together with the best talent to create a global leader in engineering for the data centre market.

“We will be leveraging our network and expertise in acquisitions and international expansion to help Black & White reach the next level and we are looking forward to seeing what the future holds for the business.”

Dave Gardner, KBS Corporate Finance Managing Director, who advised on the transaction, said: “Black & White is an incredibly dynamic business that has established itself as a true market leader.

“It has been a pleasure working alongside Mick and his exceptionally talented management team, who have created a unique culture and business model that are ingrained seamlessly across the Group’s international operations.

“We have every faith that the partnership with Waterland will lead to an exciting and successful next chapter for Black & White and look forward to following its journey over the coming years.”

acquired by

Black & White Engineering Ltd
Sector: Engineering
Location: Tyne and Wear
Buyer: Waterland

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
Black & White Engineering Ltd

Sector: Engineering
Location: Tyne and Wear
Buyer: Waterland

X
Completed Sale

CT Fire Protection Ltd

CT Fire Protection, a Kettering-based sprinkler system specialist, has joined Compliance Group in a transaction overseen by Steve Alcock, KBS Corporate Deal Executive.

Founded in 1995 by Curtis and Toni Waters, CT Fire Protection has built a stellar reputation for prompt service, extensive expertise and excellent value, with a blue-chip client base reflecting its commitment to superior customer service.

Specialising in fire sprinkler systems and fire pumps, as well as dry and wet risers, fire hydrants, and fire hose reels, CT Fire Protection has become a part of Compliance Group’s Fire Division.

With a comprehensive portfolio of fire experts dedicated to simplifying complex safety and regulatory compliance, Compliance Group’s Fire Division ensures complete fire safety compliance through a full range of fire prevention, detection and suppression services.

Compliance Group also has Electrical Safety & Testing and Water Hygiene & Testing divisions, with its decentralised operating model granting autonomy to its units to ensure the highest quality service delivery, while central resources fuel innovation and expansion.

“We are thrilled to join Compliance Group. Our customers, some of whom have been with us for over 25 years, will benefit from the investment in our business infrastructure and access to a wider array of compliance services,” said Curtis and Toni Waters, shareholders of CT Fire Protection.

Julian Williams, CEO of Compliance Group’s Fire Division, commented: “We are extremely pleased to welcome CT Fire Protection into our Fire Division. CT exemplifies exceptional customer service backed by technical excellence. Adding sprinkler services will greatly enhance our offering to our customers.”

acquired by

CT Fire Protection Ltd
Sector: Fire and Security
Location: Northamptonshire
Buyer: Compliance Group

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
CT Fire Protection Ltd

Sector: Fire and Security
Location: Northamptonshire
Buyer: Compliance Group

X
Completed Sale

Calibration Maintenance and Repair Ltd

Calibration Maintenance & Repair (CMR) has been sold to DM Calibration (DMC) in a deal overseen by Andrew Dodd, KBS Corporate Director.

Established in 1989 by Phil and Dawn Clark, CMR has facilities in Norwich and Gateshead, providing a comprehensive range of calibration services and products.

CMR specialises in the calibration of accelerometers, charge amplifiers, vibration controllers, sound-level meters, helicopter balancers, spring hammers and impact hammers.

Following a strong number of expressions of interest and a competitive bidding process, the successful offer came from Hertfordshire-based DMC – which will seamlessly integrate CMR into its group over the coming months, whilst preserving its autonomy, expertise, character and high level of service.

The sale enabled Phil and Dawn Clark to facilitate their retirement plans.

In marketing the opportunity, it was the responsibility of Tamsin James, KBS Corporate Senior Document Writer, to focus on CMR’s many strengths in preparing the presentational documents.

“Calibration Maintenance & Repair’s profitability and excellent foothold within the sector provided a strong base to create the marketing materials from,” explained Tamsin. “Our clients provided in-depth information at the start and ongoing support to help me to create a compelling narrative, which is always a pleasure. I wish them a very happy retirement!”

Georgia Rothwell, KBS Corporate Senior Research Analyst, who coordinated the buyer research process, never doubted that the shareholders’ exit objectives would be fulfilled.

“With CMR’s excellent reputation, unique offerings within the fast-growing calibration industry and KBS’ proven track record in this field, a successful transaction was inevitable,” said Georgia.

“CMR generated significant interest from a broad range of buyers, including private equity houses, national and international competitors and synergistic buyers such as DM Systems. I wish all parties the very best for the future, and our clients a very happy retirement.”

Ken Ward, Managing Director of DMC, commented: “This acquisition is an important step in our customer-centred growth plans, ensuring DMC capitalises on the numerous exciting opportunities to provide ‘best-of-class’ calibration services.

“Our aim is to invest further to enhance the operational capabilities of the combined businesses, thus continuing to deliver unique and superior value to our customers with further improvements over and above our current service.”

Andrew Dodd was delighted to have conducted a process that was completed to the satisfaction of all parties, saying: “Both CMR and DMC were an absolute pleasure to work with and I wish our clients all the very best for their retirement.”

And those feelings were certainly reciprocated, with Dawn Clark commenting: “Thank you to all at KBS, especially Andrew, for their help and guidance in the sale of CMR.

“Andrew was always there for us and we really appreciate the time and effort he gave us. I will miss our chats!”

acquired by

Calibration Maintenance and Repair Ltd
Sector: Engineering
Location: Norfolk
Buyer: DM Calibration

 

Ready to talk about your business requirements?

Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.

Completed Sale
acquired by
Calibration Maintenance and Repair Ltd

Sector: Engineering
Location: Norfolk
Buyer: DM Calibration

Speak to our expert team on 0161 258 0118 to arrange a consultation

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