Case Studies

The following are examples from client cases showing how acquisition can assist enterprises meet a variety of objectives:

investment of reserves
Some of our clients do have unrestricted reserves, these are sometimes earning a small return in a bank. One or two enterprising organisations are investigating buying businesses as a way to invest these reserves. The aim would be to develop a business and receive an income stream, and then to sell the business at a profit. Of course there are risks in doing this, hence using the AB4G to work with the directors and trustees to reduce the risks and take time to find the right business.

deliver more social outcomes
Many work integration social enterprises provide emplyability and training opportunities. The ultimate aim for these organisations is often to move trainees into jobs. The recession has resulted in fewer jobs and has also impacted the number of apprenticeship opportunities. One or two organisations have seen the opportunity of owning a business as a chance to create more job opportunities within their own group. AB4G is supporting these organisations to finding the right target companies that meets their acquisition criteria.

reach a remote community
It is often difficult to start a new intiative in a remote community that falls within the geographic focus of a community organisation. AB4G is facilitating business acquisitions that give organisations a base, income and more social outcomes in new areas. There are a number of small, owner managed businesses on the market that are unlikely to find trade buyers but that meet these requirements.

ensure better service to clients
Housing Associations are among the most innovative of the AB4G clients. A number of RSLs are considering acquiring small businesses to deliver key services like plumbing and electrical services to their tenants. The key driver for this idea is to control the service delivery to their tenants.

 

keep jobs in a village
There are quite a few business owners who are trading into their 60s and 70s as they see few exit opportunities which would ensure future employment for their staff. AB4G is working with a number of these individuals and local social enterprises to transfer the business. Of course the third sector organisations not only want to keep the current jobs but are keen to grow these opportunities. The AB4G business plan template highlights the need for a some investment into these acquisitions to provide a platform for growth.

 

save community services
AB4G has been approached by community organisations to help transfer many local businesses which provide key services in the area. These include the expected shops, cafes and pubs, but also ferries and office parks. Essential to any of these transactions is the plan to keep the business profitable and trading for the community benefit.