Introduction
Hub4Leaders, trading as The School Bus, is a subscription-based service providing online governance templates and policies to schools across the UK, albeit principally focused on English schools. The platform can service both primary and secondary schools, public and private, stand-alone schools or Academy Trusts.
Reasons for Business Exit
With the founder, Non-Executive Chairman and principal shareholder approaching retirement, alongside a commitment to other business interests, he felt it was the right time to explore exit options. The business had received several approaches from trade parties about acquiring it. The pool of interested parties was such that there was confidence in running a successful auction process.
The business had grown successfully at around 20% per year was profitable and cash generative. As a subscription-based online platform, the business was hugely scalable to the right purchaser, who would be prepared to pay a premium.
Selection of Exit Advisor
Nick had previously and successfully advised the Chairman on the sale of his previous. With a strong understanding of the market, the business dynamics and the buyer pools, it made sense to re-appoint him to sell Hub 4 Leaders, too.
Exit Strategy and Execution
The sale process was focused on maximising the value of a sale to trade parties, both those who had previously shown interest alongside a list of further parties for whom it may have formed a good strategic fit. A full role as a corporate finance adviser. This included:
- Preparation of marketing materials
- Approaching buyers
- Managing the interaction of buyers and the company with both information and presentations
- Soliciting and negotiating offers
- Managing the due diligence process with the selected buyer
- Co-ordinating the legal completion
- Project managing the whole process
- Liaising with the Board, shareholders, stakeholders and buyer
Results and Outcomes
The deal provided a good cash exit to all shareholders. The purchaser was committed to maintaining the staff whilst integrating the products onto their platform and under their brand.
The principal shareholders were able to cash out and focus on other projects. The existing management remains with the business under the umbrella of the new buyer.
