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

VGI Management Ltd

KBS Corporate has helped Enzo Genco, Director of VGI Management (“VGI”), to fulfil his exit plans by overseeing the sale of his company to New Path Fire and Security.

Enzo praised the role of KBS and in particular Paul Liptrott, the KBS Corporate Deal Executive who coordinated the transaction, for his “calm and thoughtful approach” to the process.

An electrical, fire and security company which was founded in 1998 as VGI Security and now trades as VGI Solutions, the Surrey-based business has delivered its services to projects including London’s Olympic Park, O2 Arena and Terminal 5 at Heathrow Airport.

More recently, VGI has streamlined its offering to meet the requirements of property management firms, its specialisms including electrical and lighting installation, fire alarm systems and security gates.

Enzo received substantial interest in the company from potential acquirers, among which New Path Fire and Security (“New Path”) was the first to make an offer – which was duly accepted.

New Path is a group of independently operated companies which acquires well-established businesses from owners who are seeking to retire or change direction in life having built up brand recognition and reputation over many years.

“I needed an exit plan for myself in the next few years,” explained Enzo. “Selling to a large organisation will help take the business to another level.

“The outlook is very positive. We have become part of a group of companies which can assure our clients they are in competent hands. We can now also offer other services to our clients utilising other companies within the group.”

VGI was one of two companies acquired by Southampton-based New Path through KBS in the spring of 2024 – the other being Electrifire – supported by investment from Duke Capital.

Neil Johnson, Duke Capital’s Chief Executive, said: “We are excited to be supporting New Path via the acquisition of two new targets which complement its existing portfolio.

“These acquisitions will add further scale to New Path’s platform and create additional efficiency in the provision of services to its client base in London and the South of England.”

Paul Liptrott described the understandable reasons why VGI was an attractive proposition for New Path.

“The business has just achieved a record year, which helped Enzo achieve a great value for the company, while New Path has a strong interest in businesses which offer the services VGI provides within its location,” said Paul.

“Once I shared the marketing materials with New Path, they quickly realised they wished to proceed with the discussions.”

Paul was delighted with how smoothly the transaction progressed and the involvement of other key stakeholders in ensuring an outcome with which all parties were happy.

“Enzo was exceptional in communicating with myself in regard to his ambitions,” he said. “This meant the process went very smoothly. Particularly, it was helpful in negotiating with the buyer about the offer regarding the overall value and how things were structured. 

“Huge appreciation also for the efforts of Jai Singh of the Alston Asquith law firm. Jai was instrumental in mitigating against any issue the deal could encounter and ensuring everything was attended to in the soonest possible timescale. Jai went above and beyond to assist on this deal, and I shall very much look forward to working with him on further transactions.”

Within the KBS team, Paul praised Kirsty Poynton who “put together an exceptional Information Memorandum and teaser document which really illustrated the strengths of this opportunity”.

The final word must, of course, go to Enzo, who was delighted with the work put in by KBS to ensure his objectives became a reality.

Enzo praised the “very good communication and help from KBS” and added: “Paul was excellent throughout the sales process. He has a calm and thoughtful approach which always felt reassuring. I very much appreciated his help and support.”

acquired by

VGI Management Ltd
Sector: Fire and Security
Location: Surrey
Buyer: New Path

 

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
VGI Management Ltd

Sector: Fire and Security
Location: Surrey
Buyer: New Path

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Completed Sale

Glevum Security Ltd

Glevum Security has been sold in a deal that expands the buyer’s geographical reach into the South West of England.

A transaction overseen by Matthew Sibley, KBS Corporate Associate Director, sees Glevum acquired by London-based TMA Security, which supplied over 500 professionals for both The Queen’s funeral and King Charles III’s coronation in 2022 and 2023 respectively.

Based in Gloucester, Glevum provides professional security services for clients ranging from major corporate concerns to small family-run businesses across its home county and others in the west of England from Worcestershire down to Somerset.

This was an attractive feature of the opportunity for TMA Security, which was completing its first acquisition having been founded in 2019 and prides itself on offering a highly personal service focused on integrity, quality and professionalism.

In five years, TMA has become one of the UK’s leading security companies and the addition of Glevum will enable a substantial expansion of its service area and client base.

“Glevum Security is delighted to be joining TMA,” said Mark Baker and Steve Barnett, directors of Glevum. “The team there are as passionate about delivering effective security solutions as we are, and we are looking forward to working together to expand our services and keep more people and properties safe and secure.”

Mark Telford, Managing Director of TMA Security, added: “We are pleased that Glevum Security has joined TMA at this pivotal time of growth in our business. Glevum shares TMA’s core beliefs of responsibility and keeping people safe through the latest developments in security, and the team has invaluable knowledge in improving and developing new security products.

“The acquisition of Glevum Security means TMA can expand our valuable services, client base and expertise to ensure we can provide the very best in security for our customers.”

Matthew Sibley explained there had been sizeable interest in Glevum when the opportunity became available.

“The interest was mostly from trade companies but also some investment firms, all of whom were attracted to Glevum’s consistent financial performance,” he said.

Matt also expressed his gratitude to Harriet Jones of Mackrell Solicitors, accountant Will Abbott of Randall & Payne LLP, and KBS colleague Connor Dorsey “for arranging the data room and generally facilitating the provision of due diligence”.

acquired by

Glevum Security Ltd
Sector: Security
Location: Gloucestershire
Buyer: TMA Security

 

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
Glevum Security Ltd

Sector: Security
Location: Gloucestershire
Buyer: TMA Security

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Completed Sale

Select Surveys Ltd

A “significant milestone” has been chalked up by the sale of Select Surveys to the LSBUD (LinesearchbeforeUdig) Group in a deal overseen by Fabio Rambelli, KBS Corporate Associate Director.

Founded in 1996 and based in Kent, Select Surveys is a utility and land surveying company which specialises in limiting or eliminating risk for the design and planning of new or replacement mains and services in the utility industry.

The company’s long-standing surveying expertise now complements LSBUD’s utility mapping data service. LSBUD provides utility asset maps in response to over 15,000 enquiries every day, having become established as the UK’s leading safe digging service with a free-to-use online search facility which covers a sizeable majority of the country’s utility infrastructure.

It can be used by anyone involved in construction, excavation, fencing, ditching and works likely to break ground of any scale, from a highway scheme to merely replacing a garden fence.

Deme Cordell, Director of Select Surveys, commented about the sale: “After more than two decades of dedicated efforts in building and nurturing Select Surveys into a leading entity within the geospatial industry, we are pleased to announce an exciting new chapter in our journey. LSBUD is a company that shares our unwavering commitment to ensuring the safety of operatives and protecting buried infrastructure across the UK.

“This transition marks a significant milestone for Select Surveys and our valued clients. We believe that aligning with LSBUD will not only enhance our capabilities but also open up new avenues for growth and innovation.

“Our collective focus remains steadfast on expanding and refining our business operations, thereby creating enriching opportunities for our exceptional team members and delivering enhanced services to our loyal clientele.

“As we embark on this new phase of our evolution, we express our gratitude to all those who have contributed to our success thus far. We are confident this strategic partnership will propel Select Surveys to even greater heights while continuing to uphold the standards of excellence that have defined us over the years.”

Richard Broome, Managing Director of Nuneaton-based LSBUD, added: “We are delighted to have completed this deal as part of a strategic plan to extend LSBUD’s offering. Our previous growth and development has been organic so this marks a step-change, a real statement of intent. It’s just the start of our plans to extend LSBUD’s role and reach.

“With the combined experience and expertise of both companies, and working closely with our new Select colleagues, this new chapter will help solidify LSBUD’s place as the UK’s most comprehensive safe digging service.”

Fabio Rambelli of KBS Corporate wished all parties the very best in their future endeavours and thanked CooperBurnett LLP, the solicitors for Select Surveys, for their work during the transaction.

acquired by

Select Surveys Ltd
Sector: Utility Infrastructure
Location: Kent
Buyer: LSBUD 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
Select Surveys Ltd

Sector: Utility Infrastructure
Location: Kent
Buyer: LSBUD Group

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

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