Kent Manufacturing Forum: The journey behind selling a business

Alongside Barclays and Whitehead Monckton, we were joined by more than 20 manufacturers from across Kent to understand, and experience first-hand, the journey behind selling a business.

Described as an ‘exit adventure’, manufacturers were reminded that an exit takes years, not months, in planning, that culture will almost always trump value, and that because this is often a once in a career experience it is vital to have great advisers to lean on to bring value and protection to an exit.

Now in its 15th year, the Kent Manufacturing Forum brings together businesses and advisers to learn from each other, to discuss the big challenges they face and how they might respond.

It is the business leaders themselves that drive the discussion, supporting each other in reaching decisions that they can take back to their businesses.

Speakers at the Kent Manufacturing Forum included:

• Shaun Kelly, Chairman of the Kent Manufacturing Forum
• Andrew Griggs, Senior Partner and Head of International at Kreston Reeves
• Peter Rawlinson, joint founder of automotive PR agency PFPR Communications
• Chris Tring is the Production Director at BSL Gas Technologies

Kreston Reeves: How to get a business sale ready

Preparing a business for sale starts long before a buyer appears and, said Andrew Griggs, Senior Partner at Kreston Reeves, the most successful exits are often years, not months, in the making.

Andrew explained that many business owners underestimate both the emotional and practical preparation involved in selling a company. While owners may think they are ready, it is not uncommon for them to change their minds several times during the process as they weigh up growth ambitions, culture fit and personal plans.

A recurring theme was the importance of becoming “sale ready” early. Businesses were encouraged to maintain accurate statutory records, robust financial reporting, up-to-date employment contracts and clear supplier agreements well before entering negotiations. Buyers increasingly expect businesses to have organised data rooms, reliable forecasts and strong governance in place before serious discussions begin.

Andrew stressed that preparation is not only about compliance. Buyers want confidence that a business can continue successfully without its founders. One of the biggest reasons deals fail is when too much knowledge or control remains with one individual. Building a capable management team and delegating operational responsibility were described as critical steps in increasing both value and buyer confidence.

Business owners were also advised to think carefully about the type of buyer they want. The highest price is not always the best outcome if it involves lengthy earn-outs, cultural clashes or uncertainty for staff. Strategic fit, treatment of employees and the future direction of the business often become equally important considerations.

Perhaps the clearest message from Andrew was that sale preparation is ultimately good business discipline. Even if a sale never happens, businesses that are organised, financially transparent and less dependent on their founders are typically stronger, more resilient and better positioned for growth.

PFPR Communications: the management buyout story

Peter Rawlinson, joint founder of automotive PR agency PFPR Communications, described his sale journey as more of an “exit adventure” than a straightforward transaction. Founded in 2001, the business grew from a three-person operation in Maidstone into an international automotive communications agency employing 25 people and working with brands including Ferrari, Honda and Hyundai.

After years of approaches from business sale agencies promising rapid deals and high valuations, Peter eventually entered discussions with a larger London marketing agency pursuing a buy-and-build strategy. However, negotiations broke down when the buyer attempted to renegotiate the agreed price during final discussions. Peter walked away from the deal rather than compromise on the value he believed the business was worth.

The eventual solution came from within the business itself. Two senior directors approached Peter about a management buyout, with funding initially supported by HSBC before the pandemic disrupted the deal. An alternative structure was then agreed where the directors acquired the shares immediately but repaid the consideration over time through future company profits and loan notes.

Peter said one of the biggest lessons was the value of preparing the business for sale years in advance, including building a management team capable of running the company independently of its founders. He added that businesses should not forget to look inside the organisation for a potential buyer.

BSL Gas Technologies: planning ahead for succession

Chris Tring is the Production Director at BSL Gas Technologies and shared how the Kent-based manufacturer approached succession planning long before formally deciding to sell.

Founded in 1989, BSL designs and manufactures specialist gas mixing systems used globally in sectors ranging from hospitality and food production to industrial welding. The company’s technology is used extensively in pub cellar systems, including Guinness, as well as food packaging and manufacturing applications worldwide.

Chris explained that the decision to explore a sale was driven less by financial pressure and more by a recognition that the directors wanted to exit while they still retained the energy and enthusiasm to lead the business effectively.

A key part of BSL’s strategy was ensuring staff were involved in the business and that leadership responsibilities were spread across the organisation. Share ownership had already been extended to employees, and the company had consciously built a structure where the business could operate independently of its founders.

Chris said the business had deliberately operated in a “deal ready” state for years, maintaining strong financial discipline and investing in advisers early, allowing the eventual process to proceed relatively smoothly compared with many business sales.

Kent Manufacturing Forum – get involved

The next Kent Manufacturing Forum event will be on the 7 October. Further information will be announced soon, but you can register your place here.