Corporate Finance Newsletter

August deal highlights 

It’s been a busy and rewarding month for our Corporate Finance team, with four successful deals that really highlight the breadth of our expertise and the impact we deliver for clients.  

We supported the sale of Project Home, a long-established electrical engineering firm, helping the owners navigate the process with confidence and secure a strong outcome. For Demos Ciclitira Ltd, a respected importer of dried fruits, we found a buyer who truly understood the business and its potential, preserving its legacy while enabling future growth. We also guided the management team at Westgreen Construction through a strategic buy-out, giving them full ownership of a high-end contractor known for its craftsmanship and innovation. And finally, we led the full exit of EEBS Limited, a construction payroll specialist, delivering a smooth transaction and a great result for the shareholders. 

Each of these deals involved complex negotiations, tailored advice, and close collaboration with clients and advisors. It’s a great reflection of the team’s commitment to delivering smart, strategic solutions that make a real difference. 

Business valuations spotlight 

Understanding Enterprise Value vs Equity Value: why it matters for our clients 

Understanding the difference between Enterprise Value (EV) and Equity Value is essential for anyone involved in client-facing work at Affinia. These terms come up frequently in valuation discussions, and while they’re closely related, they serve different purposes. This brief guide is designed to help you explain the concepts clearly and confidently, ensuring clients feel informed and supported throughout the process. 

What’s the difference? 

• Enterprise Value is the total value of the business. It includes debt, excludes cash, and reflects what a buyer is really paying to acquire the company. 

• Equity Value is what the shareholders actually receive. It’s the value after adjusting for debt, cash, and working capital—essentially, the net proceeds. 

Think of it like buying a house: EV is the full price including the mortgage; Equity Value is what the seller walks away with. 

Why this matters in client conversations 

Clients often hear a headline valuation and assume that’s what they’ll receive. But unless they understand the bridge between EV and Equity Value, they may be caught off guard by deductions for debt, working capital adjustments, or deal structure implications. 

Here’s a simplified example we might use with clients: 

• EV: £32m
• + Cash: £1m 
• – Debt: £5m 
• + Actual Working Capital: £6m 
• – Normal Working Capital: £7m 
• = Equity Value: £27m 

That £5m difference is real – and it’s why our role in explaining these adjustments is so important. 

Common pitfalls clients face 

• Misunderstanding how debt and cash are treated 
• Overlooking working capital requirements 
• Assuming EV equals take-home proceeds 
• Not factoring in transaction fees or taxes 

How we add value 

By helping clients understand: 

• What the buyer is actually paying 
• What they’re likely to receive 
• How deal structure (e.g. Locked Box vs Completion Accounts) affects outcomes 

We position ourselves not just as advisors, but as strategic partners. 

What you can do 

• Use clear, relatable language when discussing valuation with clients. 
• Be proactive in explaining the EV to Equity Value bridge. 
• Flag potential adjustments early to avoid surprises later. 
• Lean on internal resources—our Corporate Finance team and valuation experts are here to support you. 

If you’d like to learn any more about this topic, please get in touch with Stuart Sheldrick or Chris Theobald.  

Supporting clients with exit planning 

When clients start thinking about succession or exiting their business, it’s important they fully understand the range of options available to them – and we often find these options are misunderstood or overlooked. 

That’s where our Corporate Finance team comes in. We can walk clients through the different exit routes, from trade sales to management buy-outs, and provide clear financial models to show what each option could mean for them. These models include tax implications too, so clients get a realistic view of their potential “take-home” position. 

If you’re speaking with a client about their longer-term plans, it’s a great opportunity to mention that Affinia Corporate Finance can help them explore their options and make informed decisions about the future of their business.

That’s all for this month’s update. Please do reach out to a member of the CF team if you need any support.