ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”


Mohsin said: “I want to add my personal support and best wishes for Zuber’s plans as we continue our successful family partnership, working as partners on our personal co- investments, family office philanthropy and Issa Foundation projects.”


Lord Stuart Rose, chairman of EG Group, also praised Zuber for his “incredible leadership”, which he said had been central to building one of the largest and most entrepreneurial private companies in the UK.


The former chairman of Marks and Spencer added: “EG Group is a UK success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the group’s international markets – and pioneered the foodservice model at the roadside.


“With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success.”


Both deals are expected to complete in the second half of 2024. Asda is seeking a new chief executive and TDR says it remains focused on investing in its stores and online.


Gary Lindsay and Tom Mitchell, managing partners of TDR, are bullish and ambitious for the future of Asda under its control.


In a statement they said: “We first invested into Asda over three years ago, seeing a huge opportunity to cement its position as one of the UK’s leading retail brands.


“By combining our investment and sector Expert View FINDING THE


RIGHT EXIT By Sarah Brough,


solicitor, Forbes corporate team


Selling a business is a significant decision for any business owner – particularly if it’s a business that you’ve nurtured and grown from scratch.


When it comes to exiting your business, there are various options to consider, one of the most common choices is selling the business. With that comes a choice of whether to sell to a private equity investor or go for a traditional sale.


A private equity investor invests with the goal of generating a return on their investment. They have substantial financial resources which can be appealing if your business is in need of capital for growth or expansion. When selling to a private equity investor, it’s possible for you to retain a portion of ownership although this usually involves selling a significant stake in your business thereby giving up a large degree of control. Whilst private equity investors


often bring expertise, connections and resources to the table, they often aim for a relatively quick return on their investment.


In contrast, in a traditional sale, the business is typically sold to an individual buyer or other business entity and the ownership is transferred for an agreed purchase price.


Traditional sales can be structured in various ways to offer flexibility in terms of payment structure and transition plans and allow a seller to retain full control until the deal is finalised. Negotiating with individual buyers can be time-consuming and complex with no guarantee of a successful deal.


Whether to sell your business to a private equity investor or opt for a traditional sale is a critical decision that hinges on your specific circumstances and objectives. It’s essential to carefully assess your priorities, financial needs and long-term goals.


LANCASHIREBUSINES SV IEW.CO.UK


expertise with Asda’s heritage of delivering value for customers, we have already made significant progress in transforming Asda.


“We have added a scale convenience business, grown Asda’s store footprint from 623 to 1,200 stores and food-to-go sites, and launched a hugely successful loyalty app, which now has six million active customers, accounting for around half of total sales.


“We remain focused on investing in Asda’s stores and online, as well as its colleagues through the highest pay in the traditional supermarket sector, to drive sustainable, long-term growth.


“As majority owners, we will continue to work closely with the Asda management team and colleagues across the business to support the ambitious strategy, which we believe is the right one to continue to move Asda forward.”


They also point to Asda’s recent successful refinancing of more than £3.2bn of its debt, which the retailer says reflects strong demand from investors and has pushed out the majority of its maturities into the next decade.


There was a less positive reaction from the GMB union, which declared TDR’s larger stake in Asda as “bad news” for shoppers and staff.


Nadine Houghton, GMB national officer, said: “Their private equity ownership has already been bad for consumers - with Asda now the most expensive retailer for fuel - and bad for staff, with millions of working hours cut from the shop floor.


“Further involvement from TDR can only spell more bad news. Bosses must change course to protect Asda workers and stop this British retailer further losing more market share.”


Ian Dawson Director, AMS Corporate Finance (formerly Signature Corporate Finance)


ADVISERS ADD VALUE TO M&A


NEGOTIATIONS Navigating M&A is challenging, but is a corporate finance adviser necessary when selling your business? Direct approaches from acquirers might lead shareholders to manage their own M&A process while running daily operations.


Our experience shows that without advisers, transactions often fall short in value and terms, take longer, and cause “deal fatigue,” sometimes ending with no deal. Even simple deals can quickly become complex.


Deal negotiations, due diligence, completion mechanisms, tax planning, and legal discussions are time-consuming and tricky. Negotiating as a principal often leads to entrenched positions, leaving less room for compromises and solutions.


A corporate finance adviser brings essential experience, knowledge, and an understanding of deal dynamics. They ensure information is presented correctly, negotiate effectively, and support their positioning with technical expertise.


Advisers draw on their experience with successful deals to find solutions to issues, securing better terms and mitigating future risks. They also manage transactions to completion, allowing business owners to focus on daily operations. Given that deals can take several months, maintaining strong financial performance is crucial.


While hiring an adviser might seem costly, the expense of not appointing one can be much higher. Advisers typically cover their fees by securing better terms for their clients. They simplify a complex landscape and ensure shareholders get the best deal in terms of value and contractual terms.


So, does every M&A deal need a corporate finance adviser? Almost always, the answer is a resounding ‘yes’!


For further information call Ian Dawson 07402 080202


ian.dawson@groupams.co.uk www.groupams.co.uk


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IN VIEW


DEALMAKERS


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