Business Services
Accounting and bookkeeping, recruitment, facilities management, outsourcing and B2B services.
The commercial picture
Business services companies are valued primarily on the recurring, contracted portion of their revenue and on how much of the client relationship sits with the owner rather than with the firm.
That makes the improvement agenda unusually clear: convert project work to retained work, document delivery so it does not depend on individuals, and build a second line that clients trust.
What owners and investors are dealing with
- Owner-held client relationships and key-person dependency
- Project revenue that has to be won again every year
- Pricing that has not moved with cost inflation
- Utilisation and recovery rates on delivery staff
- Client concentration in a small number of accounts
- Technology and automation changing the cost base
How we help
Advisory
- Recurring versus project revenue analysis
- Pricing and recovery review
- Client profitability and concentration
- Indicative valuation and value drivers
Transactions
- Sale preparation and buyer universe development
- Acquisition screening for consolidators
- Earn-out and retention structures
- Client transfer and retention planning
Growth
- Service productisation and packaging
- Contracted retainer models
- Delivery documentation and process
- Management reporting and utilisation KPIs
Transaction and investment themes
- Consolidation of accounting and bookkeeping practices
- Recruitment businesses valued on contract versus permanent revenue mix
- Facilities and outsourcing contracts prized for length and renewal history
- Earn-outs used heavily where client relationships are personal
- Buyers discounting revenue that cannot be shown to be repeatable
Illustrative scenario
A business services company with stagnant margins and a founder-led client base is preparing for a sale in two years. Crystal Zest reviews pricing, utilisation and client profitability, quantifies the recurring revenue base, sets out a plan to shift relationships from the founder to the firm, and produces a value-creation plan with measures and dates against which progress can be tracked.
Illustrative
The scenario above describes the type of engagement Crystal Zest is designed to undertake. It is not a completed Crystal Zest transaction.
Start a confidential conversation
Whether you are preparing to sell, looking to acquire, raising capital or trying to lift the value of a business you already own, the first step is a short, confidential discussion about the situation.