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Strategy

K3 has implemented a growth strategy predicated on effective marketing, quality data and professional sales strategies, coupled with a low cost and scalable operating platform. This is driven and supported by K3’s continued software investment, data segmentation and optimisation and improvements in its marketing and sales presentations.

K3 is regularly evolving and enhancing its operating procedures to maximise efficiency, whilst also recruiting for key roles in specific areas. K3’s Graduate Academy, set up in 2016, is designed to yield a number of talented graduates, and the move to a new, larger, head office in late 2016 allowed K3 to increase headcount and integrate existing teams to drive efficiency.

As an innovative and disruptive player within the fragmented business and company sales marketplace, K3 has continued to increase the number of client mandates across the Group, with a particular focus on a qualified service delivery to mandates with an enterprise value in excess of £5m. The Group’s success is achieved by carefully monitoring its growth through key performance indicators, including the total volume of number of mandates, completed transactions and average transaction fees.

Development of Strategy and Services

K3’s strategy is to be an “all-of-market” business and company sales specialist, with its key offerings being:

  • Corporate Finance – operating under the KBS Corporate Finance brand, the Company offers a full, director led service to businesses typically with an enterprise value between £5 million and £50 million.
  • Business Broking – operating under the KBS Corporate brand, typically serving businesses that have an enterprise value ranging from £0.5 million to £5 million.
  • Business Transfer – operating under the Knightsbridge brand, typically serving businesses that have an enterprise value of up to c.£1 million, often occupying leasehold property, and covering all sectors including retail, catering, care, commercial, licenced and leisure markets.

K3 implements its strategy through its:

  • High volume direct marketing model incorporating an online business valuation portal
  • Disruptive business model utilising experienced Directors to agree a personalised sales strategy
  • Low cost delivery platform and centralised Head Office
  • Highly process driven and systemised methodology that is scalable
  • Maximising the use of technology to automate and simplify the transaction sales process
  • Extensive buyer reach utilising a multi-channel approach to connect sellers with prospective buyers from the UK and overseas
  • Qualified and experienced corporate finance directors who bring significant deal execution expertise to the Group

Business Model

K3’s business model is underpinned by five broad areas:

Data

A total base data set of 3.8 million limited entities and 1.2 million sole traders and partnerships are extensively profiled and refined on a continuous basis to produce a database of potential seller targets. Base data is sourced from a number of reputable sources with all profiling and refinement undertaken in-house.

Marketing

Six core direct marketing channels are engaged to promote services and create interest from the potential seller targets identified through data profiling. These include direct mail, email, online, remarketing, telemarketing and a business valuation portal. K3 instigates a considered and highly targeted, multichannel approach to prospective clients, effectively managing their client journey through a proprietary CRM system, developed by the Group.

Sales

Seller interest is qualified based upon standard criteria and are attended by a team of 13 regional corporate directors and regional sales managers across the UK. This sales model uses experienced and trained professional sales advisors with extensive industry expertise and results in qualified new mandates for each of the Group’s brands.

Operations

K3’s services are delivered through three core elements: 1) presentation – high quality and personalised documentation to best portray its clients’ opportunity to market, 2) Extensive multi-channel marketing and buyer reach to generate interested parties from both the UK and overseas, and 3) a proven deal delivery methodology, complemented by an arrangement with Gateley, where the client is offered inclusive, fully contingent legal fees.

Results

The output of the core areas above is a strong service proposition, which has been externally recognised through a number of industry acknowledgements and awards.