Why You Should Consider Us

Business owners sell their businesses for various reasons. Though it sometimes might so look on the surface of things, it's not always about money. It is often said that "The best offer may not be the best buyer."

As a business buyer in the jewellery sector, we understand this fully.

Therefore, understanding the seller is key to us. We. always like to have a heart-to-heart conversation with the seller where possible.

Some Concerns a Seller May Have

Confidentiality

Yes, we sign an NDA with you, but most importantly, you will be discussing about your potential sale directly with the CEO of SHYAM Holdings - not with any agents or staff member. Prasanna is an experienced and a reputable entrepreneur in the jewellery trade as well as the M&A sector. SHYAM Holdings is in the business of acquiring businesses and we need good, reputed businesses come to us so we highly value our reputation.

Want to Exit Ownership but, still like to continue the work I liked doing

We are very happy to negotiate this and will be very flexible on this. There are instances where we issue shares to the current owner while keeping the full control of the business so you can still benefit from the future growth.

How Long is the Whole Process?

We aim to complete the transaction within 2 months of signing the Heads of Terms if you follow our guidance. We are very confident about this target as we take all efforts to avoid the bank when raising finance. Our acquisitions are backed by a group of private investors, and we use various other strategies to avoid the bank and work with the seller to get the deal over the line. We have seen time and again, deals fall through at the last minute due to the bank changing their mind. The other major factor for lengthy time is the use of solicitors and accountants who do not have enough experience in business acquisition transactions. We have a very experienced and professional deal team to take care of this and can guide you on that.

View Our Deal Closing Cycle here.

Continued Legacy | Loyal Staff

SHYAM Holdings is here to make a difference - primarily in the brick-and-mortar jewellery retail sector. Our founder, Prasanna, is passionate about saving this valuable business that provides a great service to the local community - something which online retailers cannot provide. If SHYAM Holdings decides to buy your business, rest assured that we buy it with a long-term vision.

SHYAM Holdings is here to stay & so is your business!

Will my Business be in Safe Hands?

The simple answer is YES! Your business will be safe in the hands of SHYAM. The reason we're very confident in saying this is because we are acquiring businesses in the jewellery sector with a vision & a mission - and we won't stop till we get there! This means that whenever we buy a business, we buy if we know and realise the potential it has and the potential it can bring!

SHYAM Holdings is here to stay & so is your business!

So, what exactly is the process here? How does it work?

Initial Chat

This is the first chat between our Founder, Prasanna, and you, the business owner looking to sell. This meeting is for us to get to know you and for you to get to know us.

This is where you, the seller, decides (if not already decided) how to proceed after the point of hand-over and knowledge transfer. You can either stay on as a CEO, or coach/mentor the new CEO or, you can exit fully & enjoy a holiday in Bali!

We are happy to discuss your plans after this point even at this stage. We're more than happy to see what works best for the both of us!

Owner Full Exit | Stay as CEO | Coach New CEO

The Acquisition Phase

This is the stage of the whole process where multiple tasks are performed simultaneously. There's no 'one-after-the-other' or 'do-this-then-that' method. Negotiations are on-going and inevitably, emotions run wild (particularly for the seller)!

Communication at this stage is PARAMOUNT! There could be up to 8+ people involved here: seller, buyer, solicitors, accountants and so on! This will open up at least 20 communication channels at this point and thus prove to exceptionally complicate things!

It's also vital that the seller & the buyer understand the financial incentive that each party involved has!

We cannot stress enough how important it is to have solicitors & accountants that are specialised in business acquisitions - these two are the one that can either make or break a deal! It's the solicitors' job to protect their client at all costs and so, tend to overcomplicate things and can even kill the deal! This isn't to say that they're all evil by nature and will do this, but it's critical for us (i.e., the buyer & the seller) to understand their incentive & manage them accordingly.

For instance, a sellers' solicitor will look to protect the seller at all costs, whereas, the buyers' solicitor will include representations, warranties and exact binding clauses protecting the buyer, which in turn overcomplicate the legal documents!

As the buyer & the seller, it is crucial that we keep the end-goal in mind, being reasonable and managing the other stakeholders, ensuring that the end-goal is achieved, without letting the other parties kill the deal!

Don't let the lawyers' unreasonable demands overwhelm you. The emotional responses that manifest throughout the acquisition phase have this as their primary cause. We should try to remain calm and focus on the ultimate outcome!

Due-Diligence also takes place at this stage. This is obviously where a 'validation' takes place ensuring that every bit of information received to the buyer from the seller is correct - all the assumptions and informations provided come under investigation (for peace-of-mind-sake)!

Due-diligence can typically include areas like legal, finances and operational procedures. We, the buyer, would want to ensure we have a full insight into the operations into the business that we are going to be acquiring, amongst things like leases, permits etc.

Another stage in this whole process of 'Acquisition' is the removal of contingencies by the seller, as soon as possible. This includes the contingencies outlined in the LOI (Letter of Intent). These include appraisals, approvals, leases, permits, licences, compliance, inventory, AR & AP management and confirmation.

Will The Deal Fall at the Last Minute, thereby Costing me Time & Money?!

With a professional team of experienced staff, including solicitors & accountants , we mitigate this risk by avoiding the banks as much as possible, in order to complete the transaction as quickly & smoothly as possible.

WE ARE BACKED BY PRIVATE INVESTORS - NOT BANKS!

How do I know I'm getting the right value for my business? Will the buyer try to take advantage of my situation like a shrewd property investor?

We are very open and transparent in our valuation strategy. We have a pre-concept of likely pricing so we do not waste your time and our time. However, it is not a “one-size-fits all” method. Every business is unique on its own.

It depends on some of the main parameters below.

Your business model, such as a whole seller, brick and mortar retailer, sole online retailer, Limited company or a sole trader etc.

Is it owner operated, or staff managed? If owner operated, what’s his involvement? More involvement of the owner is less value of the business.

Your existing sales channels

Annual turnover. We are keen to acquire businesses making minimum £500,000 annual turnover. We will consider businesses less than £500k only in a special circumstance which is not repetitive.

Shareholder values ; The equity section of the balance sheet. The balance sheet formula is: assets, minus liabilities, equals stockholders' equity, and stockholders' equity includes retained earnings, or the sum of a company's net income, minus cash dividends since inception.

Your GP and NP. Ideal NP for Shyam Group will be 20% and up.

Then the Magic Number!

By considering all the above factors we will then apply a suitable multiple of your net profit (NP) plus the shareholder value (explained above). So, what is a suitable multiple then? For you to have some understanding, a well-run family-owned jeweller, less than £1M turnover is usually valued at 1.5 - 3 times of NP multiples as an average. Remember this is as an average.

This tells you how transparent we are in our approach. Not many business buyers will answer this question with this much clarity. Not even many business brokers will explain you how they arrive at a price when you want them to sell your business based on our experience. We have seen that they always set the wrong expectations to the sellers, and they are happy to wait for a lengthy period until a lucky buyer finds them.

Assurance to the Seller that Differed payments due ARE paid by the new owner

SHYAM Holdings don't look to acquire turnaround business at a bargain price. That is not our business model. We look to acquire profitable and well-run businesses that can merge into the existing group. We have a strong and experienced head office team that manage this integration efficiently so, no new business joining the group will be left behind.

This is key to us and that is why we have a dedicated business relationship manager who’s only duty is to do this. We only look to buy a turnaround business only if it fits into our development plans. Every business we buy will benefit from the groups’ capacity to leverage resources and your business will be in a much safer haven than standing on its own.