Does AB1 Group Buy Distressed Businesses?
Yes. Distressed transactions form an important part of AB1 Group’s acquisition strategy. We actively consider businesses at various stages of difficulty where a change of ownership can unlock value and create a more positive outcome for all parties involved. Each transaction is evaluated independently, based on its commercial merits.
Reviving Distressed Businesses AB1 Group’s Expertise
When a business enters a period of distress, owners are often required to make difficult decisions under pressure, with limited clarity and growing uncertainty. This is where AB1 steps in, with a proven track record of acquiring distressed businesses and returning them to a stable and profitable footing.
We have extensive experience navigating pre-liquidation sales, CVAs, administration, and the complex removal of personal guarantees. This depth of experience has built a reputation not only for saving businesses, but for protecting their original visionaries, the owners, during challenging periods.
Reviving Distressed Businesses AB1 Group’s Expertise
When faced with the spectre of business distress, company owners often grapple with the anxiety and uncertainty. This is where AB1 steps in with a robust track record of buying distressed businesses and steering them back to a path of profitability.
Navigating the rocky terrains of administration, pre-liquidation sales, phoenixing, CVAs, and even the intricate matter of removing personal guarantees – we have done it all. Our experience has cemented our reputation for not just saving businesses, but also ensuring that their original visionaries – the owners – are shielded and protected in precarious situations.
Our Blueprint for Business Revival
The cornerstone of AB1 Group’s approach to reviving distressed companies is to leverage our network of companies which provide key services to SMEs. When businesses come under our umbrella, they gain access to a vast array of services, each meticulously designed to supercharge their growth trajectory.
From accounting to marketing, and outsourcing to recruitment, our portfolio of companies act as catalysts, accelerating the revival process. Our strength is integrating these services into a cohesive recovery solution.
Moreover, our inherent strength lies in recognising that many distressed businesses also suffer due to underinvestment. We address this gap head-on, infusing the required capital and resources.
Why Sell Your Business to AB1 Group?
Selling a business which you have painstakingly built is no small feat. So, why consider AB1 Group as a potential successor? Because we are not in the practice of dismantling legacies. We aim to cultivate, not just acquire. This means that while your business becomes a part of our diverse portfolio, its individuality remains untouched.
We are interested in growth, not a redirection from the vision you have set. Your team, the driving force behind your company’s successes, remains at the forefront of our strategies. We are not just investors or acquirers; we are collaborators. We believe in harnessing the potential of the talents you have brought together, ensuring they are integral to the business’ future trajectory.
Selling a business which you have painstakingly built is no small feat. So, why consider AB1 Group as a potential successor? Because we are not in the practice of dismantling legacies. We aim to cultivate, not just acquire. This means that while your business becomes a part of our diverse portfolio, its individuality remains untouched.
We are interested in growth, not a redirection from the vision you have set. Your team, the driving force behind your company’s successes, remains at the forefront of our strategies. We are not just investors or acquirers; we are collaborators. We believe in harnessing the potential of the talents you have brought together, ensuring they are integral to the business’ future trajectory.
Valuing Your Business
When it comes to assessing the worth of your business, you are the true appraiser. Whether you choose to use EBITDA, earnings multiplier, book value, times revenue, or liquidation value, the decision on the valuation method rests with you. Once you have determined a value, AB1 Group will strategise to meet the valuation and present an offer. The choice to accept is entirely yours.
What We Require to Proceed with an Offer
Our approach to due diligence is efficient, focused and tailored to minimise hassle. Instead of getting mired in minutiae, we emphasise the key elements that hold true significance. For a streamlined assessment, we seek the following information:
- Financial statements for the last 3 years
- A comprehensive list of assets
- An outline of all financial agreements in place
There may be instances where we will want to engage in discussions with your senior staff. Typically, with the information you provide combined with our own research into your sector, we will have a solid foundation to present you with a fair and informed offer.
Ready to Discuss Selling Your Business?
If selling your business or seeking outside investment is appealing to you, then we would welcome the opportunity to discuss either option with you.
In the first instance it cannot hurt to have a discussion around the subject on a ‘nothing venture, nothing gained’ basis and see how it goes.
Complete the form to arrange a call with one of our Senior Partners.
AB1 Group’s Acquisitions:
Your Queries Clarified
How do you structure deals in distressed situations?
We typically structure deals using a mix of upfront payment and deferred consideration linked to future cash flows, tailored to the business’s valuation and performance.
Will I need to remain in the business after completion?
Not necessarily. Some owners choose a clean exit, while others remain involved for a short transitional period to support continuity. The level and duration of any ongoing involvement remain up to you.
What will happen to my staff?
Our focus is on continuity. Your team plays a critical role in the business, and our approach is to retain and support existing staff, providing stability, clear leadership, and structure as the business moves forward.
How long does the process take?
Once we have reviewed the financials, we can typically present an offer within 7–10 days. From that point onward, the timeline is led by you.
Do you use a solicitor?
We do not use solicitors on our side, which helps streamline the process. However, we encourage you to liaise with any professional you deem appropriate, whether that is a solicitor, accountant, or business consultant.
Flexible Ownership Options with AB1 Group
If retaining a stake in the business is important to you, we are open to a partnership model. However, AB1 Group does not operate as a passive investor. Our involvement is hands-on, with responsibility for key decisions that drive value, growth, and profitability. This is especially important in distressed scenarios, where restructuring and recovery require clear, centralised leadership. Our role is to provide that focus and direction, reducing the risk of missteps and helping the business move forward with confidence.
Alternatively, co-owners may retain a stake while stepping back from day-to-day involvement. In such cases, AB1 assumes the managerial reins and oversees the operation of the business. As a silent partner, you remain informed on progress through an annual shareholder meeting. To safeguard all parties’ interests, we enter into a clear agreement. Under this framework, joint approval is required for defined financial and structural matters relating to capital and funding. This provides appropriate protection while allowing the business to operate decisively.
Building a Portfolio of Profitable SMEs
At AB1 Group, our goal is to invest in and grow UK SMEs by bringing related businesses together into a stronger, more efficient network. Through shared resources, expertise, and infrastructure, we reduce costs, streamline operations, and enhance growth opportunities, enabling each business to scale faster and strengthen its market position.
Case Study of an AB1 Group Acquisition
In July 2022, AB1 Group successfully acquired Organic Gardens, a struggling garden maintenance business located in South West London. Dive into our detailed case study to discover the intricacies of how we structured the deal and rapidly steered the business towards significant profitability in just one year.
Our Investment, Your Company’s Revival
AB1 Group excels in revitalising distressed companies. Our expertise lies in financial restructuring, enhancing operational efficiencies, and identifying new opportunities, complemented by the infusion of fresh investment.
If you are seeking a partner to rejuvenate your business’s fortunes, or if you are considering a strategic exit and want to confidently pass on the challenge, our Senior Partners are ready to discuss doing a deal with you.