The sale of Reeves Lund
Reeves Lund, a highly cash generative and profitable London City-based communications technology provider, was sold to Arrow Business Communications in early 2018 with the entire sales process taking just nine months. Having run the business since its founding in 1986, the owners had been considering their exit strategy for some time but had yet to find a buyer who not only fitted their profile, but also tendered an offer which reflected the true value of their business.
It was then that Reeves Lund appointed Evolution Capital, to help them achieve maximum value from the sale of their business.
Effective planning and preparation
Evolution Capital’s unique industry approach started with a strategic review to ensure it comprehensively understood the business as well as the owners’ requirements and objectives right from the start. The in-depth review included:
- A comprehensive review to fully understand the business and its intrinsic value
- Guidance on effectively removing any potential transaction issues
- A foundation for a formal sales process and the target market landscape.
- An information platform preparing the business for sale to include preferential buyer due diligence investigation
Reeves Lund’s owners then made an informed decision to commence a sales process.
Formal sale process
Evolution Capital prepared an anonymous teaser and a detailed Information Memorandum (“IM”), which helped to optimally present the opportunity to potential acquirers and drew a significant number of qualified, interested parties to the process. These documents gave the prospective buyers a clear and insightful view of Reeves Lund and the possibility of creating additional value in their own businesses.
Maximising value and finding the right buyer
Evolution Capital’s comprehensive knowledge of the sector, extensive intelligence research capability and in-depth understanding of Reeves Lund, allowed its dedicated team to introduce high-quality buyers into a competitive situation which delivered real value.
Due diligence and final negotiations
Following an extensive selection process, Arrow Business Communications was chosen as the preferred buyer for Reeves Lund based upon a compelling offer and supported by their professionalism, reputation and past experience as an acquirer in the sector. Following the signing of Heads of Terms and an extensive due diligence process, final negotiation of the Sale and Purchase Agreement commenced. Through its unique team of business owners, professional advisors and a multidisciplinary skill base, the Evolution Capital was able to achieve maximum value with the sale of Reeves Lund by focusing on the key strengths of the business, its profits, its high quality loyal customer base and high margin low overhead position. Evolution Capital also provided extensive support to ensure a smooth transaction process beyond Heads of Terms.
About Reeves Lund
Founded in 1986 by Patrick Lund, Reeves Lund rapidly established itself as a leading telecommunications provider based upon the Avaya Aura Platform. Today, Reeves Lund provides integrated IT and unified communications services to a growing London centric and blue-chip customer base. Reeves Lund prides itself on the exceptional levels of customer service which it provides to its clients.
The final transaction was successfully completed and Reeves Lund was acquired by Arrow Business Communications Limited. The team at Reeves Lund were delighted with achieving a value for the business which was in line with the detailed valuation provided by Evolution Capital. The outgoing shareholders have now moved on to pursue other endeavours and were all extremely satisfied with our services and the value and transaction structure that we negotiated. As a result, they were only too pleased to find time to recommend the entire Evolution Capital team and their approach.
We could not have achieved this level of success without Evolution Capital. Their team was excellent throughout our nine month engagement with them. From start to finish, they expertly dealt with everything. As a professional advisory firm focused on realising maximum value, they certainly delivered and I would highly recommend their unique approach and extremely experienced and capable team.