The aim of a business contract is to try to provide certainty for both parties.
REASONS FOR A SALE
There are many reasons why you may be considering the sale of your business. Reasons for sale can mainly be split into two motivators, either lifestyle or professional. These motivators are linked to acknowledging the value you have generated in your business over the years and that you shouldn’t walk away from it without realising it’s true value. That is where our experts excel.
Perhaps one of the most popular reasons for a sale is to facilitate retirement plans. You may not feel you have found anyone suitable to take over your business considering a sale is an excellent option. Sometimes, a change in personal circumstance can prompt the sale of a business. You may have decided to spend more time with your family, seen a decline in your health or are considering a relocation. By pursuing a sale, you are still realising the value that you have spent building over the years before moving away from your business.
Another key reason for sale, is that you may feel that you are unable to generate further growth in your business. You may then consider a sale in order to enable further growth under the impetus of a new owner, and thus the importance equally lies with finding an acquirer who can really bring the business up to the next level.
Our team has several decades of experience in M&A, and in 2020 alone we completed 200 deals across multiple sectors – making us an ideal partner to help you no matter what your motivations for a sale might be.
Once you have identified your reason for sale and have instructed our M&A team, our unique process begins. This can be broken down into four main steps, the first of which is to understand your business.
Part of our unique service is that we are entrepreneurs, our team has personal experience in building, selling, floating and securing investment in businesses. This means we understand every business is unique, so each opportunity needs a bespoke approach, this is why we have remained one the UK’s top Corporate advisers since 2017 by the number of deals we have advised on. We take the time to truly understand the financial and commercial strengths of your business, and during our initial discussions we will identify your preferred buyer type, deal value expectations and structures, and the level of confidentiality that you desire throughout the process – every aspect is tailored to your objectives and personal circumstances.
The next step is to present your business to market, this will be carried out by our dedicated in-house document writers and designers. We pride ourselves on producing impactful and innovative presentation documents. The first document an interested party will receive will be an Opportunity Summary which highlights your businesses attributes whilst making sure your confidentially is ensured. For approved interested parties this will be followed by an Information Memorandum, which will present full details and highlights of your business to the market. We pride ourselves on our creative and unique IMs, and we will work with you throughout the entire process to ensure the document is informative and powerfully portrays both the success and ethos of your company.
Our third step is reach. It is our goal to offer the most comprehensive buyer reach within our industry, this is why we have invested heavily within our data and proprietary software. This has resulted in our tailormade Buyer Matching Engine, which provides our expert Research Analysts with financial profiles, historical acquisitions data and access to global acquirers to identify only the most suitable and motivated acquirers to the opportunity. Our highly skilled research team will work with you to generate a potential buyer portfolio which helps to focus our approach maximise potential value.
In the final stage you will work with our Directors and Deal Executives, these are highly experienced individuals with our directors alone holding over 200 years’ experience. This experience enables us to maximise the value of your business through creative a competitive bidding environment and generating buyer meetings. During this stage we will also assess the viability of interested parties, review final documents, and can provide assistance during the legal process, if required.
There are different forms of investors, perhaps the most common are family offices and institutional investors. Seeking investment in your business not only benefits you as a shareholder but it can also provide significant opportunities for your employees and the business as a whole.
THE BENEFITS TO YOU AS A SHAREHOLDER
As shareholders, investment allows you to de-risk your current stake in the business and offers the opportunity to realise further capital later. This can be based on completing a handover period or meeting pre-established performance standards. Often this can result in you exceeding your expectations whilst generating further growth within your business. Working with an institutional investor or family office may assist you to slowly wind down your involvement in your company, whilst ensuring that your business performance remains strong. Investment is also highly popular in situations where shareholders are different stages of life and may not be ready to exit at the same time.
THE BENEFITS TO YOUR EMPLOYEES
An institutional investor can be used to aid a Management Buyout. A major consideration for investors is the strength of the current management team as they will be the ones to drive further growth once the shareholders have exited, and investors would often look to incentivise key employees as part of the deal in order to align all objectives in driving future growth.
THE BENEFITS TO THE BUSINESS
By seeking investment, your business should not only benefit financially but investors should add significant value. They should be able to drive expansion by the introduction of additional knowledge, resources and technologies. Institutional investors or a family office should create a clear strategy for growth and can apply their practical experience to the benefit of your business.
HOW CAN WE HELP?
Our team enjoys a rich history of securing investments for clients across a wide range of industry sectors. Through a sophisticated buyer matching process and relationships with Private Equity firms, Family Offices, and high net worth individuals throughout the world, we are able to present its clients with an array of exit options to best suit the needs of their business as well as their own objectives.