Private Equity and Acquisitions

SYSTEM 21 has helped to deliver significant fortunes in company Mergers, Acquisitions and Business Sales. We "seek out" possible cost savings and latent profitability and identify the future profit potential from Mergers and Acquisitions, We can do this in the same timescale as the financial due diligence.

Our work in this sector has involved Project assignments of any size up to business turnovers of several £ Billion, See the case studies below.

"If there are savings there, we will find them." Andrew Whiting CEO - SYSTEM 21

Private Equity, Company Sale, Acquisitions and Valuation services :

  • Operational Due Diligence - Control systems in place ?
  • Identification of Cost Savings
  • Company Restructure ?
  • Cost Savings - Pre Acquisition
  • Cost Savings - Post Acquisition
  • Resource Bank of staff
  • Interim Management
  • Business Merger Implementation
  • Business Modelling - What if ?

PRE ACQUISITION

SYSTEM 21 staff can be rapidly deployed to carry out operational due diligence or to make a confidential review of the potential synergy savings from the merger of two or more businesses. We have produced numerous assessments of the potential savings from rationalisation that would follow the acquisition of both successful businesses and turnarounds and in most cases where the acquisition took place, we implemented the strategy plan acting as both the transformation team and as interim middle management under the new CEO.

POST ACQUISITION

Post acquisition, SYSTEM 21 will deliver the strategy plan in a much shorter timescale than local management alone. We have been engaged to act as both interim middle management, with significant staff cost savings, at the same time delivering the turnaround or merger strategy plan. We supply experienced staff as an immediate resource to start working as soon as the deal has been done. Our methodology enables the participation of staff and management in the change process and they rapidly regain confidence in their future and see the whole exercise as supportive and beneficial for their job security..

SYSTEM 21 should be regarded as an integral part of your share price strategy and exit route.... We can significantly increase the capital value of a business..  A higher share price involves maximising profit and value, demonstrating effective internal control systems, having the right overhead structure and giving off all the right “signals” in terms of valuation.

Example 1 : PROJECT PLUTO

A nationally renowned travel and holiday business was sold a few years ago to a private equity group, straight after a SYSTEM 21 Project that delivered increased profitability. Additionally, the project Team installed formalised documented procedures, reports and management KPI’s to reinforce the increase in productivity and sales margins. This was a family sale and there was an earn out clause agreed. The SYSTEM 21 Project programme had prepared the business for its maximum "price tag" and it was indeed bought by a Private Equity Group.

A few years later we followed up on this business and found that the highest P/E ratio and company value ever achieved was the period immediately after the SYSTEM 21 Project. The savings from the project had been sustained through the earn out period and the family received the full payment for the business. The valuation of the same business in subsequent years was never as high as this period, despite the Private Equity Group's subsequent investment in additional businesses which doubled turnover in three years.

Example 2 : PROJECT HUMMINGBIRD

A major Holding Company, listed on the UK Stock Exchange, used SYSTEM 21 in 13 subsidiary businesses immediately prior to each sale and exit.  The Acquisition price was successfully negotiated down as a result of the findings of our Operational Due Diligence but on resale of the same businesses, the ratios achieved were significantly higher.  One of these businesses was sold for £ 87m to a Private Equity Group which then reportedly re-sold the business two years later for only £12m to the “management team”.  The SYSTEM 21 involvement had actually delivered the top price for our client.

Example 3 : PROJECT HORATIO

Worldwide Electrical Group : SYSTEM 21 was commissioned to manage a series of 11 Projects in their worldwide acquisitions in a two year period. The project objective was to turn around the loss making businesses which were bought for £6m by the J V Partnership of Senior Management and an Equity Partner, who took on the debt.   On final sale, two years after the SYSTEM 21 involvement, the company was sold to an American Group for £ 140m, making multi-millionaires of each of the senior management team and a return of over 6 :1 for the Equity Group partner. This was achieved in only a two year period. Without the resource and expertise provided by SYSTEM 21 this turn around would have taken 3 years longer.

Example 4 : PROJECT ALEXANDER

SYSTEM 21 was engaged by the new owner of a loss making steel wire making business after it had been acquired by a Worldwide steel company for £50m.  Within 8 months the CEO valued the new acquisition at over £ 500m - a ten times return on the purchased investment, due to the SYSTEM 21 turnaround in sustainable projected profit..  It was subsequently sold off at that price and the Chairman praised the result and his list of achievements on the front page of the Financial Times.

NB There are change management CASE STUDIES in other SECTIONS

CONTACT US for more information or email to info@system21.co.uk

SYSTEM 21

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All text and examples are copyright SYSTEM 21 and may not be copied or reproduced without prior written permission .

Services Overview

Professional change management and transformation services, including full implementation of all recommendations. SYSTEM 21 has an enviable track record of 100% successsful projects.

  • - Profit improvement with full implementation
  • - Busioness diagnostics and transformation
  • - Change Project Management

Contact Us

To contact us please fill out a general enquiry on the Contact page, phone or email or text as below.

Address: 270 Castle Street, Dudley DY1 1LQ, UK
Telephone: +44 (0) 1384 456 760
FAX: +44 (0) 1384 456 348
text: +44 (0) 7767 297 661
E-mail:info@system21.co.uk