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Case studies

Delivering the complex exit of a UK business to a Chinese conglomerate

Successfully utilising Deloitte's international platform

Client situation

Having implemented a programme of change which dramatically improved the business’ profitability, the investor group who invested in 2010, were looking to exit this UK-based luxury-goods manufacturer.

With a global brand, a well-invested product range and demonstrable EBITDA growth, the company was an attractive asset. However, as the business operated in a niche market, buyers were likely to require education about the market and the business’ market penetration.

In addition, due to the radical transformation undertaken since 2009, buyers were likely to seek validation of the company’s growth plans.
 

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Deloitte approach

Deloitte had worked with the business since 2009, providing a wide range of services, including introducing the investors who led the 2010 equity raise. This on-going relationship meant Deloitte had an unparalleled understanding of the business, enabling it to more readily identify key selling messages and potential challenges (and how to mitigate them), and to understand management. This enabled Deloitte to execute a disciplined and controlled process that protected the business’ brand and maintained confidentiality whilst delivering enhanced value. 

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Deliverables

Deloitte’s strong international platform helped deliver a successful exit to a leading Chinese conglomerate.

Deloitte’s understanding of the Chinese market and our insight into cultural, governmental and regulatory implications for the deal were crucial in delivering this transaction.

The transaction delivered a significant premium and a substantial return to the 2010 investor group. Under its new ownership, the business continues to be a client of Deloitte.
 

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