What would your business be worth if a buyer looked at it today?

For many founders in the UK vape and FMCG sectors, the answer is more complex than revenue times multiple. Acquirers are not only looking at how big you are. They look at how stable, scalable and clean your business is. At Rocket Seven we see the difference between brands that look ready and brands that are ready. That difference often lies in preparation, documentation and operational strength.

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A. Why acquirers start with risk not revenue

When an acquirer reviews your business, they assess risk before opportunity. Due diligence is a detailed fact-gathering process that evaluates assets, liabilities, commercial potential and value. For UK-based businesses, the key risks include unpaid tax, non-compliant contracts, founder dependency and regulatory exposure. If these remain unresolved, valuation can drop significantly or deals may fail.

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B. Five value drivers acquirers look for

Here are five areas acquirers focus on. Get these right and your business becomes stronger and more acquirable.

1. Revenue Quality and Diversity

Are sales spread across multiple SKUs, customers and channels? If you rely heavily on one product or retailer, you carry concentration risk. Margins also matter. High turnover has little meaning if profitability is weak.

2. Operational Independence

Can the business run without you? Acquirers reduce valuation if the operation depends entirely on the founder.
Strong systems, documented processes and a capable team protect value.

3. Regulatory and Compliance Readiness

In vape and FMCG, regulation is strict. Acquirers will ask for product testing records, packaging, labelling, compliance certificates and trading licences. Regulatory surprises or missing documentation can damage confidence and pricing.

4. Brand Strength and Consumer Insight

A brand that shows consumer loyalty, repeat purchase and category relevance attracts interest. Evidence of growth, distribution reach and social proof increase credibility.

5. Exit Blockers and Dependencies

Are you reliant on one supplier or one key account? Are there contractual clauses that restrict transfer or create risk?Acquirers look closely at dependencies that could affect future operations.‍

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‍C. UK due diligence checklist for sellers

If you are preparing for an exit or investment, work through this checklist to strengthen your position.

1. Legal and Governance
- Incorporation documents and share register
- All customer and supplier contracts
- IP ownership, trademarks, domains
- Employment contracts and compliance with UK employment law
- Data protection and cyber security

2. Financial
- Last three years of accounts
- Management accounts and cash flow forecasts
- VAT, PAYE and tax status
- Working capital and inventory reports
- Revenue split by product and customer

3. Operational and Commercial
- Review of top customers and retention rates
- Supplier contracts and pricing stability
- Documentation of production, logistics and quality assurance
- Systems and IT readiness for scale

4. Brand and Market
- Evidence of repeat purchase and brand loyalty
- Market share and retail footprint
- Distribution channels and marketing ROI

5. Exit Readiness
- Founder dependency and management structure
- Key person coverage
- Sale structure (share sale or asset sale)
- Organised and accessible data room

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‍D. How weaknesses affect valuation

A well-prepared business commands stronger offers.
Acquirers pay more for companies with low risk, scalable operations, compliance assurance and growth potential.
Missing data, dependency on the founder or legal risks create negotiation pressure and price reduction.
Deals can slow down or collapse entirely if these are not addressed early.

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‍E. How Rocket Seven helps brands prepare for acquirers‍

Rocket Seven works with UK vape and pouch founders to get their business acquirer-ready.
We help you audit your business, resolve blockers, prepare documentation and position your story for acquirers or investors.
Our approach ensures that your business passes the acquirer’s checklist and attracts the right kind of offer.

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Conclusion:

What would your business be worth today to an acquirer?
It is not just about what you earn. It is about what you can prove.

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If you want to make sure your business stands out and passes the acquirer’s review, start the conversation with Rocket Seven.

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Disclaimer: This article is for informational purposes only and should not be taken as legal, financial or regulatory advice.