We were appointed to consult with this PR business £5m on their strategy for the next five years. The two owner-managers had been approached to sell the business but wanted to discuss their options before they jumped to any quick conclusions.
We carried out an exercise to calculate whether they would be better off selling now, or in two or five years time. We discussed the idea of arranging a partial exit or a Management Buy-out. This would involve a whole new strategy to develop a senior management team so the two owners could extricate themselves gradually from the business but still maintain a stream of income as minority shareholders. This process lasted about six months. We did not pitch for the audit or other compliance work and therefore the existing audit firm remained in place.
However because we impressed them they eventually offered to give us all the on-going year end work to us and we then replaced the existing audit Firm.