How it works
How the work is done
You apply, agree the terms, and send your papers. You then receive a confidentiality agreement template to complete for each buyer, a buyer pack to forward, and a seller report that stays with you.
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1
Apply
Send your name, the business, the sector, a turnover band, and when you are thinking of selling. The form is the application.
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2
Confirmation
EntroStrategy replies to say whether the work can go ahead. Packs are prepared for fire, security, and compliance inspection and maintenance firms, and for other owner-managed service businesses with recurring revenue.
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3
Terms
Before any papers are exchanged, you agree short terms. They cover the work and how the documents may be used.
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4
Your papers
You send recent accounts, revenue by client, the main contracts, and a staff list.
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5
Confidentiality agreement
You receive a template with the pack. For each buyer you enter their name and the purpose of the discussions, then send that copy before the pack.
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6
Delivery
The buyer pack is a report and a workbook you can forward once the agreement is signed. The seller report lists what a buyer or lender is likely to question, and it stays with you. An earnings figure is adjusted only where your papers support the change.
What the seller report checks
The seller report sets your figures against these lines. They are a preparation check for you. The buyer pack does not carry them as a grade.
- Recurring revenue Above 60% of total revenue.
- Client concentration Largest client below 10% of revenue, and the top five below 30%.
- Retention Annual retention of contracted revenue above 90%.
- Owner involvement Owner under 20 operational hours a week.
- Debt service Coverage of at least 1.5× after an allowance for tax and maintenance capital expenditure.
- Leverage Total debt in a band of about 3–4× adjusted EBITDA.
The buyer pack shows an indicative valuation range: adjusted EBITDA multiplied by 3.0× to 4.0×.
Standard includes one revision round. Premium adds a two-year trend, a buyer question sheet, an adjustment file, a contract list for the largest customers, and a proceeds comparison that stays with you. Package details are on a separate page, and the sample shows both documents for a fictional firm.