Fairmountain buys up to 100% of shares in complimentary companies building a group. This consolidation of businesses allows each company to benefit from economies of scale, cross-selling, larger tender opportunities, NED support and of course a much greater multiple on group sale than if the businesses ran separately.
We buy outright or take equity stakes in profitable companies that have been running for more than five years with turnover of between £3m - £20m. We are fully focussed on a strategic exit and group sale for the individual SME businesses, using our expertise in this area; we benefit too on business exit as co shareholders so our interests are aligned from the start..
We improve profits through a range of financial strategies, marketing initiatives and cost saving synergies with our complimentary businesses, all working towards the same group sale and strategic exit. We have deep expertise in the areas that we are investing, through 300 years of collective management experience plus the inputs of our JV Partners and strategic advisors.
We help to grow shareholder value by acquiring a competitor, gaining investment, increasing turnover and EBITDA, merging with other businesses or adding new services and customers. You can turbo charge growth which will have a multiplying effect on the strategic exit value. A group sale commands greater multiples due to the scale of business profits on exit.
Working with the management teams Fairmountain galvanise and connect complimentary businesses within the group to improve synergies by cross-selling opportunities, using best practice processes and economies of scale. All working towards our group sale objective. Higher multiples and therefore higher values are created at business exit with this strategic plan.
Once a group of complimentary businesses has reached £50m turnover and £5m EBITDA we create capital events for the shareholders through Private Equity or IPO group sale. Business exit valuations for companies within a group of this size, can be 2 or 3 times that of the individual company values by themselves. So by being part of the strategic exit group you realise more value than you would on your own.
Our focus is on Construction, Professional Services and Property Services (Recruitment, Training, Marketing HR Facilities Management, HVAC, Electrical, Joinery). We are looking for business owners who would like to sell all of their company, or some of their company and join us in building a group and being part of our strategic exit plan.
Small businesses attract smaller price earnings multiples on business exit. If your business generates £250,000 in profits, then you are unlikely to receive the same multiple of that profit when you sell, as a business that generates £2,500,000 in profits. We are building a group of complimentary businesses who want to be part of a strategic exit, group sale.
This is another challenge for SME owners. Fairmountain is on the side of SMEs and wants to help you to generate greater multiples for your hard earned profits. We will work with you on increasing profitability and allow you to benefit from being part of a much bigger group. This way your profits are calculated together with the Fairmountain Group's profits and you are able to attract 2, 3 or sometimes 4 times the value for your business as part of a strategic exit.
Speak to a Fairmountain Partner or contact us through this site to find out more information and see if the opportunity of a group sale could work for you and your business.
"We're on the side of SME's"