Purchasing an established business can be a quick way of entering the market place. The business will typically already have a customer and supplier base, premises, employees, equipment etc facilitating the purchaser to enter the market seamlessly.
We will assist you to find the right business where the potential benefits to be gained outweigh the investment cost rather than the other way around. We have considerable experience of carrying out different types of due diligence exercises on potential business acquisitions, where we can help to identify the hidden skeletons in the cupboard, and help you to find the true value in a purchase.
We have the experience to enable us to generate and collate the information required by banks and other funding providers so that you can raise the money to complete a purchase. We will advise and comment on documentation, liaising with your legal team to ensure that the deal is structured correctly in order to minimise risk.
We will advise on the most suitable method of financing a deal, and work closely alongside the selected funder.
Selling a Business
Businesses are sold for a variety of reasons but generally these will be retirement, wealth extraction, health or simply having reached the point where owners feel they lack the drive to move forward.
It is essential that a seller is able to maximise their investment and this is where correct advice is vital.
We will assist by identifying the right time to sell, what we refer to as “getting your ducks in a row” and by ensuring that any business issues are resolved prior to a sale. This reduces the risk of the deal either falling through or of the price potentially being renegotiated downwards.
For a case study of Plum Software Ltd click here
Often the most suitable purchasers for any business are its management or employees. There may be a management team in place who run the business on a daily basis, making all business decisions, but reporting to the business owner who may not actually work within the business day to day.
The management team may therefore be the ideal people to purchase the business from the owner. They will know the business inside out; knowing the market, customers, suppliers, employees etc. The aim of such a transfer of ownership is to provide a seamless transition.
We work with buy-out teams and as required will become involved in any negotiations, reviewing documentation and assisting with business plans, forecasts, due diligence exercises and financing.
A management buy-in is the purchase of a business by a new external management team, who will then take over the operation of the business. They utilise their own skills to improve the business and move it forward.
Compared to a management buy-out the purchasers may have little experience or knowledge of the daily operation of the business and will therefore need to carry out far more detailed research and fact-finding on the business being acquired in order to reduce risk.
We are highly experienced in this type of transaction and can assist both management teams and sellers through any issues as they arise. We review documentation and assist with business plans, forecasts, due diligence exercises and financing.
We have excellent business relationships with a wide range of finance providers including banks, factors and invoice discounters, business angels or venture capitalists.
We are happy to discuss your requirements whether they relate to traditional bank overdraft, bank loan, invoice financing arrangements or equity deals. The ability to meet with a range of finance providers increases, in our experience, ability to achieve the best deal.