Preparation is Key During the Covid-19 Crisis
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Preparation is Key During the Covid-19 Crisis Acquisition Strategy, Strategic review, Technology December 2, 2025 For many businesses, COVID 19 took away the fundamental tool that management teams rely upon heavily to make sound business decisions – the ability to plan and prepare effectively. With so many unknown elements affecting businesses in the ICT sector, decision-making and agile management have taken on a far more fluid dynamic as company owners attempt to blend pragmatism with their growth ambitions, and for some enterprises – survival. As mergers and acquisitions advisors to mid-market companies in this sector Evolution Capital is working with a number of businesses either preparing to sell or looking to acquire. Evolution has evidenced some innovative and highly proactive decision-making that is delivering value and creating favourable conditions for ‘bounce back’ when the crisis is over. The turmoil in the wake of the lock-down in March 2020 has left many owners in no doubt of the need to have an agile executive process to complement a robust business model. The more obvious decisions were taken first, accelerated by the requirement for home-working, increased vigilance on cyber-security and flexible support programs. However, for some traditional industries order books have been destroyed over-night whilst for many ICT businesses, demand, particularly during the first month, skyrocketed. What has been obvious, and particularly within Evolution’s group of clients, is that prescient management decisions are vital to combat the effects of the crisis. In all cases, consequential business decisions need to be made or dynamically changed to fit the vagaries of the current marketplace. It is comparatively early to second-guess what happens next but organisations with strong recurring revenues, long term contracts and stable revenue streams are in a strong position to emerge with their value intact. As owners struggle to get a sense of the new normal and attempt to return to pre-pandemic conditions management teams need to assess all the potential scenarios as they are presented. “We reacted quickly to counter the effects of the pandemic and initially had to cope with a large influx of orders. This was an expected spike in business and our decision to increase our investment in lead-generation to ensure the sales-funnel was full when we most needed it is paying off. Mobile apps, softphones and MS Teams are all selling well. We also decided to ‘upskill’ all our staff in the complete business cycle from sales to project management to accounts to ensure they had a greater awareness of our internal process as a business. This has helped us take a much more consultative approach with our customers, which is always good for customer loyalty. It’s obviously been an unsettling time but with 100% staff retention and a sympathetic customer approach, we anticipate coming out of the crisis in good shape. We have always worked hard to create a robust business model and with 80% of our business coming from recurring revenues we are in a stronger position than some of our competitors who have relied on large, single capital payments as a revenue model. In April we bought Info-sec Cloud which has proved incredibly timely and the early responses to our cybersecurity webinars have been overwhelming providing us with early validation of our acquisition strategy. As veterans of the traditional ‘calls and lines’ business, we have focused on creating a flatter, repeatable business model which we believe will ensure we emerge from the crisis in a strong position.” Ralph Gilbert, Joint Managing Director of Focus Group an award-winning telecoms provider Despite the chaos caused by the crisis preparation and planning have been a key factor in plotting a successful path through the emergency and not only by retaining value but in many cases unlocking hidden value in the business. “Despite the current climate, life has to go on and as 70% of our business is managed services on long contracts our business model has proved resilient. Running a company under lock-down is a bit of a roller coaster within which we have to work hard to make some swift, impactive decisions ensuring we do not lose any business. We are focused on vertical markets like Banking, Insurance and Logistics and get a unique view of the effects on these markets. Budgets are now truncated as most of the new projects have been shelved. However, there is an increasing reliance on legacy equipment and we decided early on that we should focus on offering our customers vital support in this area. After the first month of turmoil, things continue to stabilize as we assist our clients in adopting the best practices to manage their businesses effectively such as running their projects remotely.” Daren Bland, CEO of Recarta ITA sound continuity plan appears to be another key to allowing companies like Recarta to focus on faster collaboration and compressing cycle times in each part of their organisation, which in turn allows them to support the customers dynamically. Bland continues, “We have worked even harder at improving our customer communications and decided, wherever possible to increase the frequency of our service desk calls. If there is a silver lining, I believe we are seeing some efficiency gains from remote working. Ultimately, if you have a team of smart, intelligent staff you can replicate that environment remotely.”Despite the problems the crisis has posed for companies, life and business continues, mandating a need for thorough preparation and meticulous planning. This strategy has enabled many organisations to react to changing conditions facilitated by proactive decision-making. “SMEs in the ICT space are well placed to react quickly to changing market conditions ensuring continuity of vital services to their customers. Like many companies, we experienced a flurry of activity as our clients moved toward home-working and into the cloud. The first thing we had to decide was how to support their new environments. We took the
THE EVOLUTION OF OUTSTANDING TRANSACTIONAL OUTCOMES
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template THE EVOLUTION OF OUTSTANDING TRANSACTIONAL OUTCOMES Acquisition Strategy, Strategic review December 2, 2025 Evolution Capital has been providing premium corporate finance advice exclusively to ICT business leaders for nearly twenty years. With a client list of over two hundred well-known businesses in the industry, the market has changed dramatically since the company’s inception. However, the fundamental values upon which the enterprise has been built have changed little. The company has worked hard to create a unique proposition in the busy advisory field through building expertise and specialism to differentiate their service offering from the competition. They have underpinned a successful blueprint for transaction completion with a detailed process of preparation and planning enabling them to achieve a number of industry ‘firsts’. Nigel Cook, Evolution Capital’s founder and MD, explains: “When I created the company nearly two decades ago there were a host of business advisers selling companies like commodities but no-one was creating any value in these organisations as part of the disposal process. Subsequently, exit prices were not as high as they could have been and little thought was applied to building or finding hidden value prior to the sale. Twenty years on and the same advisers are still churning businesses without doing the analytical spadework to uncover the intrinsic value that can be converted into significant worth. Our approach typically manifests itself in higher sale prices. When I started the business I wanted to share with our clients the values of structured preparation, teamwork and integrity – all backed up by a team of market experts. It took me a while to find the right people and finesse a process to meet our goals but I can honestly say that we have achieved what we set out to do. ”Evolution Capital set out its stall to achieve outstanding transactional outcomes for its clients. There is no secret to how they do this other than create a defined process that prepares businesses for the best results by unlocking any hidden value in the organisations they represent. Mike McKewen, a co-founder of ACS group, said “The team at Evolution Capital took us out of our comfort zone and questioned our existing processes and methodologies. It highlighted what we needed to do to exit the business at the right price.” Today, ICT businesses are a lot more sophisticated than they once were. However, the fundamental prerequisites of preparation and planning remain constant. Technology and communications have evolved at such a pace that vendors’ business models have to be flexible and agile. The demand for good M&A consulting is as high as it has ever been but expectations are equally elevated. A good business disposal or acquisition depends on finding the right buyer for the right seller and Evolution’s reputation in the market is founded on concluding successful transactions. It is a holistic process and one that starts and ends with a proven approach. Setting realistic expectations and delivering on their promises have defined Evolution’s success. Time is taken preparing their clients and analysing fundamental processes – a methodology that has taken years to evolve. It is an established process offering a high level of surety in the subsequent transaction. The company depends on a deep level of expertise from within the team. A key member of this team is Duncan Gregory, Transaction Services Director and an expert corporate finance advisor. He says, “After working in Corporate Finance for one of the big five consultancies for ten years I learned how transactions complete, or more importantly why they don’t complete. Too often the methods used to value businesses lack an accurate methodology and I quickly deduced that a broad range of multiples with no exact science behind them delivered poor results and failed transactions. Once you start analysing the fundamentals of a business such as the quality of contracts, the spread of revenues over the customer-base and the accuracy of the management accounts you can start to define where the opportunities are to increase value. It doesn’t happen overnight and sometimes the information is not always available but once you have it you can then start to look at increasing value, adjusting the EBITDA and applying higher multiples. Tracking wasted cost, reducing efficiencies and taking out one-off costs all have an important bearing on the big picture. Once our recommendations are applied, a leaner profit base complements a higher quality of earnings and we can determine greater business value.” Evolution believes they provide their clients with a unique proposition to uncover hidden value in their business and they are completely focussed on helping them achieve it. They have been providing a fully managed service offering spanning two decades and are one of the few business advisors to provide such an extensive range of expertise. They know the market, the vast majority of potential acquirers – and importantly they know exactly what the buyers are looking for. The company manages all the aspects of an effective transaction enabling and enhancing offers. It is a bespoke process that requires careful supervision to avoid any disruption to the business during the engagement. However, providing so many successful outcomes needs complete focus, great attention to detail and plenty of good market intelligence. The last word goes to another client Rob Lamden, founder of Between the Line Communication’s who said, “Evolution Capital identified a few potential problems at the beginning of the sale process, which did indeed occur, however the firm’s tenacity at working through these issues was exemplary. The team managed a difficult situation with great sensitivity and ensured the deal got done.” Although the marketplace has changed significantly, the fundamentals of best practice and good advice have remained constant and the company continues to provide its clients with exceptional transactional outcomes. Entrepreneurs looking for advice and guidance on any element of business acquisitions can book a virtual ‘one-to-one’
Q&A with Xavier Pompidou – on the importance of preparation at Le Mans
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Q&A with Xavier Pompidou – on the importance of preparation at Le Mans Acquisition Strategy, Strategic review December 2, 2025 It is officially called “24 Heures du Mans” but most of us know it simply as Le Mans, a name that needs neither honorifics nor epithets. In a sport that is often guilty of overusing superlatives to gain just a little more traction, Le Mans is (probably) the most famous car race in the world. Put simply, the competition is a definitive performance car race staged in a sleepy French town that springs to life life once a year for an epic showcase. It was first staged by the Automobile Club de l’Ouest in 1923 as a test of fortitude for automobiles and is the oldest (and undoubtedly the most romantic) endurance car race in the world. Formula 1 is a sprint but Le Mans is ultimately a marathon, for both cars and drivers, providing a crucial test of doggedness and resilience for each.Team Evolution Capital hosted a group of TMT entrepreneurs at Le Mans 2019 in June and were delighted to be addressed by former race winner Xavier Pompidou during a break from the track. Read on to find out what it takes to make a Le Mans-winning driver. Q: How did you get into to racing cars? XP: As a kid I was always into cars and I got into karting. I discovered I was quite good at it at in 1990 I won the Elf Volant Karting Trophy in Jesolo, Italy. I was lucky enough to get some support from Elf and Gitanes and with their sponsorship I was able to continue. Q: What led you into endurance racing? XP: When I was 26 I got an offer from Elf to take part in the ISRS Prototype World Championships driving a Centenary/Alpha. This led me to go on and drive at Le Mans in the LMP (Le Mans Prototype) category. After that I joined I joined Porsche, winning titles in the GT Class before joining Rebellion Racing in Switzerland and winning at Le Mans again. Q: What makes Le Mans such a unique event? XP: Le Mans is a very special occasion and it gets the best out of everyone. Of course, we are there to win and that is your job but it is not everything. In the media all you hear about is F1 but here, at Le Mans, you cover a greater distance in 24 hours than any Formula 1 driver does all season and probably at higher average speeds. On average we race at at 220 kilometres an hour and cover almost 5000 kms for the race. Drivers need to be incredibly fit in mind and body. Q: Is this what makes it such a great race, the super human effort required? XP: It’s not all about the driver but it’s everything about the team. At Le Mans you can’t do a thing without your team and everyone has to work hard to be part of that team. Drivers, engineers, mechanics, strategists all have to work in harmony or else nothing works. Ultimately, I think that this makes us better people. Q: How hard is it on the cars? XP: It’s brutal – an engineer’s nightmare. Cars burn hundreds of gallons of fuel, go through thousands of pounds of wheels and tyres, the engines are driven to destruction. So many things can go wrong. If the smallest of parts break that can be the end of the race. Q: With so many things that can go wrong what is at the top of the teams list of priorities during the race? XP: When it all comes down to it it’s about making the right choices at the right time. Simple things such as when will the last tank of fuel be taken or will the tyres be good for another lap. Races are won and lost in the pits. Q: Is it difficult to sleep during the race, when drivers are changed? XP: Personally, I don’t find it so. We assemble at 6am for the race briefing and the race starts at 3 pm – so when I was driving, I could sleep easily after the change – I was ready for it. It’s really a 48-hour race not 24 hours. Q: What was your scariest moment driving a race car? XP: I think it was losing a wheel at 200 kph at Indianapolis – I finished by hitting a tree. Q: Do the Le Mans Drivers need to be the same size, height, weight? XP: No not at all. Each driver has a seat and belts are custom-made for him and these are changed when the drivers swap over. Q: Can the car engines be reused after Le Mans? XP: No, they are built only for Le Mans Q: Which cars do you prefer to drive? F1 or Endurance? XP: Definitely Formula 1 Q: Is there much difference between the cars? XP: Not much, the Porsche Prototype is quicker, Le Mans 24 hours cars are quicker still but on the straight the F1 car will be quickest at 220 maybe even 230 mph? Q: What are your weaknesses as a racing driver? XP: I am probably too nice for single-seaters. To be a successful F1 driver you need to be a real dog if you are to reach the top. Q: Can you become wealthy racing outside F1? XP: Not really. At Le Mans the prize money is around $150,000 to be shared between 3 drivers and the team. There are lots of nice watches and race-cars to be won but that’s probably it. I retired from racing because I knew I would not get into F1. Q: What do racing-car drivers do when they retire? XP: Many like me go and coach the young
Evolution Capital announces sale of ACS Group to AdEPT in £7.5m deal
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Evolution Capital announces sale of ACS Group to AdEPT in £7.5m deal Acquisition Strategy, Strategic review December 2, 2025 Evolution Capital is delighted to announce it has advised on the sale of Advanced Computer Systems Group (ACS Group), a highly profitable Yorkshire-based IT specialist focused on schools and SME businesses across the UK, to AdEPT Technology Group plc (AdEPT), the established and growing AIM-listed ICT services provider. Evolution Capital acted as advisers to the owners of ACS Group, which led to AdEPT acquiring 100% of the business for a headline price of up to £7.5 million in April 2019. The group was established in 1999 as IT specialists for small businesses and educational establishments in South Yorkshire. The company was founded by brothers Mike and Kevin McEwen, who grew ACS Group into a thriving niche business with a loyal customer base of over 200 satisfied customers nationwide at the transaction date. This provision of excellent customer service and dedication to bespoke solutions was at the heart of the success of ACS Group. More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (4) Analytic Services (3) Blog (5) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Evolution Capital announces sale of ACS Group to AdEPT in £7.5m deal December 2, 2025 Acquisition Strategy, Blog Adept acquires IT MSP Shift F7 in deal advised by Evolution Capital December 2, 2025 Acquisition Strategy, Blog Preparing for exit is key December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. FAQ Frequently Asked Questions Request a Confidential Consultation Discover Your Business Value Start with a strategic assessment to understand your maximum potential valuation in the current market. Contact us now Company About Us Blogs Our Location Careers Our Services About Us Sell Side Buy Side Data Work Resources Faq Client Dashboard Support Our Location Contact Us (020) 3696 2810 Info@evolutioncapital.com 68 King William Street, London, EC4N 7HR The Granary, Oak Lane, Chichester, PO20 7FD Subscribe Subscribe to our newsletter
Adept acquires IT MSP Shift F7 in deal advised by Evolution Capital
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Adept acquires IT MSP Shift F7 in deal advised by Evolution Capital Acquisition Strategy, Strategic review, Technology December 2, 2025 The deal will expand AdEPT’s IT capabilities and customer base, bringing expertise in outsourced managed IT and telecoms solutions, including IT support, hosted IT, cyber security, data connectivity and next generation IP telephony services. Dorking-based Shift F7 reported £5m in turnover for the year ended 31 May, 2018. Following the acquisition, AdEPT’s revenues will grow by 10% to circa £54m and, depending on the trading performance of Shift F7 in the year post-acquisition, a further £2.9m may be payable in cash. Shift F7 was founded in 1995 and provides IT support services and technology solutions to 200 mid-market customers. Its key suppliers include Citrix, Microsoft, HP, Cisco, Ericsson LG and VMWare. The company also operates hosted platform environments in London Docklands and Heathrow. The companies are well known to each other having collaborated on projects over a ten year period, during which both organisations displayed an appetite for building recurring margin while pursuing capital asset light strategies that are highly cash generative. Approximately 75% of Shift F7’s gross margin is generated from recurring products and services.Shift F7’s Dorking premises will be retained, along with the senior management team responsible for strategy, technology development and general business operations. AdEPT CEO Ian Fishwick commented: “Shift F7 enhances our market position in IT, particularly in London, and complements AdEPT’s acquisition of OurIT in February 2017 which also focused on London and south east commercial customers. Following the Shift F7 acquisition more than 70% of AdEPT’s revenue will be generated from managed services including IT support, unified communications and data networks.” More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (3) Analytic Services (3) Blog (4) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Adept acquires IT MSP Shift F7 in deal advised by Evolution Capital December 2, 2025 Acquisition Strategy, Blog Preparing for exit is key December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget December 2, 2025 What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What types of companies do you work with? We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. When is the right time to start planning a sale? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. What does Evolution Capital do? We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We work exclusively with owner-managed and mid-market businesses in the Technology, IT, Telecoms and Managed Services sectors. Our clients typically generate between £2m–£50m+ in annual revenue. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. We specialise in advising Technology, IT and Telecoms business owners on business sales, acquisitions and strategic growth. Our work includes valuation, exit planning, due diligence, market intelligence and full end-to-end transaction support. FAQ Frequently Asked Questions Request a Confidential Consultation Discover Your Business Value Start with a strategic assessment to understand your maximum potential valuation in the current market. Contact us now Company About Us Blogs Our Location Careers Our Services About Us Sell Side Buy Side Data Work Resources Faq Client Dashboard Support Our Location Contact Us (020) 3696 2810 Info@evolutioncapital.com 68 King William Street, London, EC4N 7HR The Granary, Oak Lane, Chichester, PO20 7FD Subscribe Subscribe to our newsletter
Preparing for exit is key
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Preparing for exit is key Acquisition Strategy, Preparing for exit, Strategic review, Technology December 2, 2025 Preparation for exit is clearly key to success, but how many company owners genuinely practice this when embarking on selling their business? We see so many companies in the TMT sector make the decision to sell only to be disappointed after a long and arduous sale process in which the final price has been chipped again and again by savvy buyers. Selling your company is arguably the most important event of your business career. It would be foolish not to prepare fully for it. -Where to start? The sales process is a multi-event sequence and requires learning a multitude of technical skills and abilities. While most entrepreneurs have plenty of passion and commitment it is unlikely that they will become an expert in the different aspects of selling a business, or even assemble a team that can deliver such a multi-skilled process. A first step would be to find the right M&A advisory firm with an in-depth knowledge of the sector to take you through the entire process. -When to sell and who to? When to sell is a personal decision. Some entrepreneurs have a target value in mind, others might have to sell for personal reasons. There is no right or wrong time, as long as your business is ready for sale it will attract buyers. The TMT sector continues to expand and there are plenty of mid-market players looking to merge with like-minded businesses. Knowledge of the sector and the personalities behind it is paramount as due diligence advisers are known to be canny. -Get fit for sale This can take time. Learning new skills is always hard, and only with total commitment to trial and error do we acquire new abilities to a reasonable standard. All the events or phases in a sales process are crucial. A platform of quality information and reporting needs to be designed and populated so the business will score the highest points through each event, and most importantly arm business owners with the right tools to defend buyer investigations in the transaction phase. Business owners who are determined to achieve maximum value must understand a buyer’s perspective of their individual propositions, strengths and weaknesses, before embarking on value improvement. -Strategic review A full strategic review of your business is crucial. Most companies will want to raise KPI performance before populating an information memorandum template. It is critical for business owners to improve these metrics and remove any obstacles to a sale. Sale processes that do not commence with a strategic review, that have no robust due diligence platform to support the process through to completion, nor commit to a value improvement program from the beginning, are unlikely to achieve maximum value at transaction.Simply squeezing your business into a template to attract offers without any bespoke analysis and metric training is not an option. In fact, research by Evolution Capital has found the biggest challenge facing a business ill-prepared for the sales process is not the lack of reasonable offers, it is achieving a value at transaction that has any semblance to the value agreed when entering exclusivity with a buyer. -Start early Most processes lose more value than they gain in price maximisation through marketing and negotiation than they do in the period between signing heads and entering exclusivity to completion. Why not enter that phase in full knowledge that your business is fighting fit? It is not uncommon to see reductions of over 20 per cent achieved by competent buyers with specialist advisors. During due diligence, difficulties often arise with defending claims made in the company information memorandum document and this generally points to a lack of preparation in the beginning and due provision for specialist guidance in the final phase.Professional adviceWhile brokers claim expertise with transactions, many lack the experience or fail to commit these expensive resources in the final phase of the project. Business models heavily contingent on success require high levels of transactions, which in turn necessitates resources being spread too thinly to deliver outstanding outcomes for shareholders. In many cases, the need for experienced transaction support is critically delivered over a demanding four week period, when business owners are most challenged to defend value. Our experience is that a successful mid-market business sale absorbs many hours of professional advice much earlier in the process, typically between 500 to 1,000 hours of professional advice. Of this at least 30 per cent is set aside for preparation.Transaction dayIt can all still fall apart if you don’t have the right team around you. While training and preparation are of equal importance to achieving ultimate success in a sales process, all can still be lost at the final crucial moment. A good M&A advisory organisation will manage the arduous transaction process, field questions and deliver the right information to buyers, ensuring the right price is achieved.[This was first printed in Comms Dealer Magazine in February 2019] More than 2 results are available in the PRO version (This notice is only visible to admin users) Categories Acquired (2) Acquisition (8) Acquisition Strategy (2) Analytic Services (3) Blog (3) Business Acquisition (1) Business Aquired (2) Business Sale (23) Business Valuation and Research (1) Buy-Side (1) Buy-side M&A advice (1) Buyside M&A (3) Case Studies (59) Disposal (5) Financial Due Diligence (2) Fund raising and listing (1) Fundraising and M&A advice (2) ICT (2) IT (2) IT Managed Services (2) IT MSP (1) M&A Managed Buy and Build Programme (5) Managed Service and Mobile (1) Managed Services (2) MBO Management Buyout (1) Media (1) Merger (1) Multiple R&D Tax Claims (1) Sell-Side (2) Sell-side M&A Advice (1) Software (1) Strategic review & business sale (1) Strategic Review & partial sale (1) Technology (6) Telecoms (30) Telephony (1) Transaction Support (1) Unified Comms (3) Valuation and fundraising (1) Social Media Our Blog Related Articles View all blog posts Acquisition Strategy, Blog Preparing for exit is key December 2, 2025 Acquisition Strategy, Blog Entrepreneurs’ Relief reform – the Evolution Capital take on
Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template Entrepreneurs’ Relief reform – the Evolution Capital take on the 2020 budget Acquisition Strategy, Blog December 2, 2025 Yesterday’s budget signalled just how serious a threat to the British economy the coronavirus crisis has become. New chancellor Rishi Sunak’s announcement of the biggest budget giveaway for almost 30 years, including £12bn of immediate measures for the NHS, public services and small businesses in a coordinated move with the Bank of England, had to be funded by something and it seemed entrepreneurs were to pay the price. One of the most significant revenue raisers came from the decision to limit Entrepreneurs’ Relief, which Sunak described as “expensive, ineffective and unfair”. He said the lifetime limit would be reduced from £10m to £1m, a move that will raise £6bn. Paul Davies, M&A adviser at Evolution Capital, commented: “The reform to Entrepreneurs’ Relief was expected as the benefits fell to very few people. Indeed, for larger businesses, the relief has effectively been removed. From our research at Evolution Capital, we do not feel that there will be a material impact on business valuations at the point of sale. M&A activity in the TMT sector remains buoyant and we have a number of buyers who continue to be interested in acquiring high quality businesses with strong recurring revenues. Such businesses are still in short supply and remain attractive to potential purchasers.”The tax break had previously been heavily criticised by economic think tanks including the Institute for Fiscal Studies and the Resolution Foundation, who said it was not well targeted and caused distortions in the tax system. Entrepreneurs’ Relief, which halves the capital gains tax paid when people sell their businesses, was introduced by Gordon Brown’s Labour government in 2008 in a bid to incentivise people to create new businesses and was expanded by the Conservative government after 2010. However, it is said to benefit just 4,000 business owners a year, who tend to use the tax relief as a retirement pot, rather than stimulating new start-ups. It costs the Exchequer an estimated £2.7bn a year to operate without stimulating start-up business. Under Sunak’s revamp, the relief on capital gains tax when selling a business was significantly scaled back. Business sellers will pay 10% on lifetime gains of up to £1m, compared with the previous upper limit of £10m. Above £1m, business owners will be charged standard capital gains tax rates, which is 20% for higher-rate taxpayers.Sunak said fewer than one in 10 claimants said the relief had acted as an incentive to set up their business, and almost three-quarters of the cost went to 5,000 people. Indeed, it is said some 80% of small business owners would be unaffected by the change. The money raised by the Entrepreneurs’ Relief reform will be used towards other measures to help businesses, including an increase in the tax relief available for businesses investing in research and development, or buildings and structures. The employment allowance, which small businesses can apply for and put towards employer national insurance contributions and first introduced by George Osborne in 2014, will be increased by a third to £4,000.The tax reform was praised by Mike Cherry, the chairman of the Federation of Small Businesses as a “sensible compromise”. However, many business owners will find the decision a tough one to accept. Some argue there is a risk the reform will dis-incentive business owners to sell and would deny any reward for entrepreneurs who have taken risks and experienced hardship during the set-up phases of running their businesses. Miles Dean, head of international tax at Anderson Tax UK, claimed Entrepreneurs’ Relief was an “easy target” and that it sent out a negative message to people setting up new businesses.“Politicians must consider what this means commercially and what it will do for an economy that relies very heavily on entrepreneurs. It is a great shame. The message is loud and clear from this government: take all the risk you like in setting up a new business, it doesn’t count for anything,” he told Citywire.co.uk. Meanwhile, IPSE (the Association of Independent Professionals and the Self-Employed) welcomed Sunak’s “historic Coronavirus stimulus package” but criticised the government’s plans to extend the changes to IR35 to the private sector, claiming it would undermine the contracting sector. Chris Bryce, CEO of IPSE, said: “This Budget is a mixed but overall still gloomy event for most of the self-employed. The measures to support the self-employed and small businesses through the coronavirus outbreak are very welcome – and in-line with what IPSE has been calling for. However, just as the government tries to protect freelancers’ incomes with these measures, it destroys their work by forging ahead with the disastrous changes to IR35, despite heavy criticism.” Elsewhere across the business sector, the budget was broadly welcomed as a positive. Ian Stewart, chief economist at Deloitte, said: “Major shocks to economies need to be resisted with a swift, aggressive and co-ordinated policy response. Mark Carney and Rishi Sunak have produced a forceful and convincing response to the crisis. In economic policy terms, they just deployed the big bazooka.” Evolution Capital prides itself on offering bespoke M&A advice to clients in the TMT sector. Our carefully chosen tax experts are on hand throughout the transaction process to ensure all outcomes are as tax-efficient as possible. If you’re a business owner looking to buy, sell or accelerate, please get in touch with our transaction team. 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What I learnt – Tom Carroll, founder of Our IT
Home Contact Us Home-version 2 Service page About Us Office Location Post template Home Contact Us Home-version 2 Service page About Us Office Location Post template What I learnt – Tom Carroll, founder of Our IT Blog, IT December 2, 2025 In the first of our Evolution Capital Alumni series, we speak to Tom Carroll, founder of Our IT and an avid cyclist, about the lessons learnt following the sale of his business. Deal stories make headlines. As a sector we’re obsessed with what our rivals are doing; who is selling, who is buying, who the movers and shakers are. But what happens once the deal is done? What do entrepreneurs do once they have parted company with the business they have created, nurtured and grown? Two years on from the sale of ICT support firm Our IT, a business he built up over a period of 15 years, Tom Carroll is smiling. It is thanks to the advice from Evolution Capital, which paved the way for a successful exit back in February 2017, that Carroll has been able to fulfil his lifelong passion for cycling. “Financially the sale of the company was very rewarding and gave me plenty of time and choice for deciding my next move. The first thing I did was to cycle from Chile to Argentina which gave me lots of space for meditative thought. I then went on another cycling adventure from Lasa (India) to Kathmandu (Nepal) and then onto the Everest Base Station – traversing about 20 different mountains as I did so. When I came back I took intensive French lessons and then went on some more big trips – this time in Australia and the US. Thankfully, Carroll has now got rid of the wanderlust and is considering his next move. He remains on the hunt for businesses to buy. Looking back on the deal of his life, Carroll says there were numerous lessons learned and challenges met along the way, but ultimately the decision and subsequent execution of the company’s disposal was based more on serendipity than planning. He explains: “I had no plans to sell the business but I was highly active on the acquisition trail and had purchased and integrated a couple of businesses into Our IT. It was not until Evolution Capital approached me that I realistically considered selling the business. My one takeaway from this process is the time to transact is only when you have the right counter party in the room at the right time. Until that happens, the rest is just hot air.” He believes that in the increasingly frenetic M&A marketplace there are actually very few credible buyers. This might well explain the disproportionality between market activity and execution. Tom continues: “You can of course increase the chances of making something happen by doing the fundamental things well and presenting the company confidently, but most of the offers I received had little credibility and it made no sense to follow through with them. ”In hindsight, what were some of the unexpected bonuses learned on the way? Carroll continues: “Running and driving your own business is a lonely path to take. Like many owners in the same position, I did feel incredibly isolated at times. Of course employees and consultants, all with their own agenda, are always around but it was not until I joined The Supper Club that I discovered like-minded people. These business men and women were all under similar business pressures as me; the same HR, growth and cash flow issues that we face every day. It was comforting to learn and share similar experiences with my peer group. ”Many business owners, when they leave their companies behind, particularly those that have taken many decades to build and grow, feel a certain sense of loss when then finally decide to give the reins to another. Carroll explains: “Most people who dispose of businesses suffer some sort of sellers’ remorse. When you have created a thriving organisation, something that is not only a profitable business but one that has a flourishing spirit and ethos, it is hard to leave it all behind. One minute you are at the very centre, a self- determining, respected business leader who is looked upon for advice and guidance and the next you are not. It’s almost as if you are half the person you were, albeit with a much more healthy bank balance. ”One thing Carroll doesn’t miss is the stress. “I don’t miss the constant pressure of running a business or the trials and tribulations of driving a growing one. What I really don’t miss is the need to be in constant touch with the business and never being able to turn off. For the first time in years, I recently left my lap-top at home went I went on my holiday – contrast that with the panic I experienced when I forgot it on one vacation from Our IT.” Being an entrepreneur is certainly tough; even when the deal is done. Carroll recalls finding the so-called earn out period the least enjoyable part of being a seller of a business. “Although I was still there, managing the business and fully accountable, I was no longer in control. It was a sterile, semi existence and I completed it quick as I could – well within the allotted earn out period. I would advise others doing an earn-out to complete it as quickly as they can,” he explains. As someone who has lead and run a business for more than fifteen years Carroll has plenty of advice for entrepreneurs. “The one major lesson that I learned is that there is no silver bullet. All businesses are a sum of the parts, and owners need to make marginal gains in every area of their business to be successful. This is where Dave Brailsford’s Marginal Gains philosophy comes in – every company has to think like the British Cycling Team and try to apply small gains to