FAQs

Why speak to Daniel about your business?

Daniel owns a group of four manufacturing companies and is interested in speaking to other business owners to see if there are opportunities to invest in, buy or merge.

As a private investor, Daniel invests his money into various assets, such as stocks, bonds, real estate, or businesses.

They take on the risk and potential rewards of their investments to grow their wealth over time. Private investors often have a long-term perspective and may diversify their portfolios to minimise risk. Daniel also has the funding in place to buy businesses outright.

What are the hurdles to a potential business sale?

For business owners to exit their business and enjoy a well-earned retirement, their only real options are to sell the business or close it down. Unfortunately, most businesses are not sellable for the following reasons:

• They are too small – only 4% of businesses ever make it to £1m in turnover and don’t attract high valuations.
• Profits are not reliable and repeatable.
• The business is too reliant upon the owner.
• Lack of 2nd tier management to step up.
• Lack of sales & marketing expertise.
• Lack of documented systems and processes.
• Significant investment required.
• Owners don’t want to sell to a corporate.
• Lack of quality financial reporting and financial statements

How can Daniel help overcome such hurdles?

What sets Daniel apart from many business buyers is that he will look at acquiring businesses that meet some of the criteria above, if other issues can be addressed either pre-completion or during a reasonable handover with the seller.

Typical examples of work he will do to ensure the target business can operate once the owner has left includes recruiting senior and secondary management, implementing robust financial controls and implementing sales and marketing plans to drive growth.

What if my business is currently struggling – could I still sell?

Many businesses Daniel talks to and considers for investment or acquisition are not doing well at the time, with owners looking for an exit strategy.

The owners want to retire, but their business is not in a position to be sold. In these cases, Daniel is prepared to work together to turn the business around and eventually sell it.

Who’ll manage the business if I sell?

One of the common issues Daniel has come across over the past few years has been business owners looking to sell, but not having any senior management in place to step into the void they leave, as it is too reliant on them to operate.

In such circumstances Daniel has planned this into the transition plan and recruited management into newly acquired businesses to enable the sellers to retire. Or, as part of his group, he has been able to identify management to step in and help with the transition. In some cases, owners have remained involved following the sale as consultants.

What is the difference between a private investor and an angel investor?

Private investors typically invest their own personal funds into businesses, while angel investors are typically high-net-worth individuals who invest their own personal funds but often have a background in entrepreneurship and may provide mentorship or expertise in addition to capital.

Which is being part of the DBPI Group an advantage?

By being part of a bigger group, all of the businesses become more valuable but also benefit from:

• Daniel’s experience of driving value from businesses
• The management team’s shared experience of operating manufacturing businesses
• Shared marketing resources to deliver organic growth
• Cross-selling opportunities
• Access to different sources of finance
• Purchasing economies of scale

Once a business is operating successfully within the group, there are also more options available for owners to achieve a successful exit. Small businesses are too small to sell or don’t attract high valuations, but being part of a larger group makes businesses more sellable and more valuable to potential investors. Hence, selling to us or merging would be attractive for these business owners.