Does AB1 Group Buy Distressed Businesses?

Yes! We love distressed sales, and the challenge that accompanies turning around a struggling business. We specialise in business revival, possessing a reservoir of knowledge and infrastructure tailored for recovery missions.

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.

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. The crux is our ability to synergise these services, providing a holistic recovery solution.

BOOKKEEPING
ACCOUNTING
MARKETING
RECRUITMENT

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.

    Arrange A Call With Our Team

    How Can We Help?

    AB1 Group’s Acquisitions:
    Your Queries Clarified

    How do you structure your deals?

    We offer cash payments, earn-outs, or a mix, depending on the business’s valuation, type, and profitability.

    Do I need to stay in the business?

    How involved you remain is up to you. Be it daily operations, an advisory role, or a complete handover, we adapt to your comfort level.

    What will happen to my staff?

    We are all about continuity. Your team, your business’s backbone, will be valued and further nurtured under AB1 Group.

    How long does the process take?

    We move fast, typically, an offer is tabled with 7-10 days post the receipt of required financials. Then, it’s your call.

    Do you use a solicitor?

    We do not use solicitors, streamlining our end of the deal. However, we encourage you to liaise with any professional you deem fit – be it a solicitor, accountant, or business consultant.

    Flexible Ownership Options with AB1 Group

    If you are keen on retaining a share in your business, we are completely open to that prospect. However, it is essential to understand that AB1 is not about passive investments. Our engagement, be it a complete acquisition or a partial stake, is always hands-on. Our strategies for enhancing value, fostering growth, and boosting profitability necessitate us being at the forefront of pivotal decisions. This becomes especially vital in scenarios like distressed sales, where our expertise in restructuring and recovery plays a decisive role. From past experiences, we have observed that when crucial turnaround decisions are left solely to the co-owners, there can be missteps. Our presence ensures these oversights are mitigated.

    Alternatively, co-owners can opt to maintain a share while taking a backseat as silent partners. In such instances, AB1 assumes the managerial reins, but we remain committed to transparency, ensuring you are kept informed with a detailed annual report and regular shareholders’ meetings. To ensure that all parties’ interests are diligently safeguarded, we enter into a stringent agreement. Key tenets of this agreement stipulate that all significant financial decisions demand unanimous shareholder consent. Additionally, our dividend policy mandates that 80% of the profits are disbursed, and clear pre-emption rights are established should either party identify a prospective buyer.

    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, the 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.