Our Business Model
CDK Group Services along with their strategic partner Fairmountain Capital are building a group of companies that will form the property services vertical within FMC. This alliance allows each business to benefit in various ways, with more cross-selling, more lucrative tender opportunities, better NED support from leading professionals, and much greater multiples on group sale amongst the biggest advantages of joining forces rather than operating individually.
Price earning multiples
Smaller businesses draw lower price earnings multiples upon business exit. So, should your company make a profit of £250,000, you’re unlikely to receive the equivalent multiple of that profit when you come to sell as a business that makes a profit of £2,500,000. That’s why we’re creating a group of complementary businesses who are seeking to be part of a group sale with a strategic exit.
At CDK Group Services, our team are eager to help you conquer the challenge of achieving bigger multiples for your hard-earned profits. We can help you increase profitability by becoming a valuable part of a bigger group. Your profits will be calculated with our group’s profits, letting you draw two, three or even four times the value of your company when a strategic exit is achieved.
For further information on how a group sale could benefit your business, don’t hesitate to get in touch with the team at CDK Group Services. Call us or contact us via our website today.
Acquire profitable businesses
CDK are investing in profitable businesses which have been operating for over five years and have a £1m to £10m turnover. At CDK Services, we’re dedicated to helping SMEs achieve a strategic exit and sale, with our team possessing vital expertise in this area of business. As we and our co-shareholders also benefit from business exits, you can rest assured that our interests are aligned with yours from the outset.
We aim to increase profits using various financial schemes, marketing ideas, and cost-saving initiatives, working together with the other businesses in our consortium to achieve our shared goal - strategic exit and group sale. Our team have vast expertise in the areas we invest in, with many years of collective management experience at hand.
Boost shareholder value
We can assist in boosting shareholder value through the acquisition of a competitor, securing investment, expanding turnover and the EBITDA, integrating with other companies or by gaining new customers or services. We can help increase business growth exponentially, leading to a rise in the strategic exit value. At CDK Services, we recognise that a group sale demands larger multiples due to the scale of business profits upon exit.
Working with management teams, CDK connects with complementary businesses within the group, working to improve synergy through economies of scale, best practice processes, and promoting better opportunities for cross-selling. We aim to work towards our main objective – a strategic group sale. Higher multiples can be achieved using our strategic plan, which means much higher values at business exit are generated.
After a group of complementary companies has achieved a turnover of £50m and EBITDA of £5m EBITDA, we establish capital events for shareholders via Private Equity or an IPO group sale. Business exit valuations for businesses within groups can be up to three times that of individual company values. Therefore, as a valuable part of the strategic exit group, you can expect to achieve more value than you would independently.
At CDK, we’ll consider most sectors of industry. However, we’re currently looking to focus on group sales of Professional Services and Property Services. This includes businesses within the areas of Recruitment, Training, HR Payroll, Marketing, Facilities Management, Building Compliance, Construction, HVAC, and Joinery. We’re seeking business owners who are interested in selling part or all of their company and building a group to become part of a strategic exit plan.