Completed business sale · Anonymised case study
How We Helped Complete a £510,000 Security Business Sale
A strategic buyer, a challenging funding requirement and a deal structure that brought everything together.
- Sector
- Security and Alarm Services
- Transaction type
- 100% Share Sale
- Adviser
- Gavin Page, Transition 360 Partners
- Total Transaction Value
- £510,000
- Initial Payment on Completion
- £150,000
- Deferred Consideration
- £290,000
- Completed Transaction
- 2024
The Challenge: Finding a Buyer Who Could Complete
The owner of an established security and alarm services business wanted to sell.
The challenge was not simply finding someone interested in buying the company. It was identifying a commercially suitable purchaser and agreeing a transaction structure that both parties could realistically deliver.
The buyer needed sufficient funding to make a meaningful payment on completion, while the seller needed confidence that the proposed transaction could proceed.
The Opportunity: A Buyer With a Strategic Reason to Acquire
The buyer was an established property investment and refurbishment group.
With hundreds of properties requiring alarm and security services, the acquisition offered a compelling commercial opportunity.
Rather than continuing to source these services externally, the group could acquire an established security business and bring those capabilities into its wider operations.
This created a strong strategic fit between the two businesses.
The buyer was not simply acquiring another company. It was acquiring specialist expertise and services that complemented its existing property activities.
The Obstacle: Funding the Initial Payment
Although the commercial rationale was strong, securing the initial acquisition funding proved challenging.
Several potential funding routes were considered:
- Invoice finance
- Conventional bank borrowing
- Asset finance
- Personal funding
Each option needed to be considered against the buyer's circumstances and the requirement to complete the transaction.
Ultimately, the buyer elected to use a combination of personal funds and capital from its holding company.
This provided the necessary initial funding and allowed the transaction to proceed.
The Solution: Structuring a £510,000 Transaction
The completed acquisition was structured to balance the seller's financial expectations with the buyer's available funding.
| Component | Amount |
|---|---|
| Initial payment on completion | £150,000 |
| Deferred consideration | £290,000 |
| Existing company loan assumed by buyer | £70,000 |
| Total transaction value | £510,000 |
The £70,000 existing company loan assumed by the buyer was not cash paid to the seller.
The £290,000 deferred consideration was structured through quarterly instalments.
This allowed the seller to receive an immediate payment while enabling the purchaser to spread the remaining cash consideration over an agreed period.
The transaction also included arrangements for an initial handover and the possibility of further consultancy support to assist the transition.
Understanding the £70,000 Existing Company Loan
As part of the acquisition, the business had an existing £70,000 loan outstanding.
Rather than requiring the seller to repay this borrowing before completion, the transaction was structured so that the buyer would assume responsibility for the existing company debt.
This meant that although the total agreed transaction value was £510,000, the amount payable directly to the seller was £440,000.
Of that £440,000, the seller received £150,000 on completion, with the remaining £290,000 structured as deferred consideration payable in quarterly instalments.
The £70,000 was therefore not an additional payment to the seller. It represented an existing financial liability that the buyer agreed to take on as part of the overall acquisition.
This distinction matters because the headline transaction value and the actual cash received by a seller are not always the same.
The Result: A Completed Business Sale
The transaction successfully completed in 2024.
The seller achieved an exit through a structured share sale, while the buyer acquired a security services business with a clear strategic fit alongside its property investment and refurbishment activities.
The initial funding challenge was overcome through a combination of buyer resources and negotiated deferred consideration.
The result demonstrates how identifying a suitable purchaser and negotiating an achievable deal structure can help turn an acquisition opportunity into a completed transaction.
What Business Owners Can Learn
The highest offer is not necessarily the best offer.
When selling a business, the headline valuation is only one consideration.
A successful transaction also depends on:
- Finding a buyer with a genuine commercial reason to acquire
- Understanding how the acquisition will be funded
- Negotiating an appropriate balance between upfront and deferred payments
- Managing the expectations and requirements of both parties
- Maintaining momentum through negotiations and completion
A buyer may recognise the value in your business but still face challenges funding the acquisition.
The right deal structure can help overcome those obstacles without abandoning the transaction.
Considering Selling Your Business?
Selling a business involves more than agreeing a price. Finding a suitable buyer, understanding how the acquisition will be funded and negotiating the right transaction structure are essential to achieving a successful exit.
Transition 360 Partners helps owners of privately held businesses navigate the sale process, from initial valuation and buyer identification through negotiations and completion.