Selling a business
To sell successfully, prepare early to maximise the value of the business on sale, get your financial information right, understand how various acquirers value business and take specialist advice. You need to check that publicly available information e.g. at Companies House, websites, press articles etc is consistent with any information memorandum you prepare. This would normally be provided to prospective investors after the investors have reviewed a brief Investment Summary, or “teaser”, and signed a Confidentiality Agreement.
You also need to recognise and highlight your key strengths including unique team members, unique technology, intellectual property, critical mass, market share, sales and sales potential etc.
The sale of a business can be a long and complicated process especially for first timers, and it is highly likely that the underlying business can suffer through the process as demands on management time can be substantial.
What EFM will do for you if you are selling a business
We will help you throughout the sales process to get the most out of your proceeds. We will start early to prepare the business with focus on reliable and understandable financials that highlight the company’s historical performance, business plans that showcase the growth potential and processes and practices that will help to drive the business forward. We will also consider relevant exit strategies and methods to help you maximise value to get the best deal possible.
Buying a business
To buy successfully, recognise the important assets or skills that must not be compromised e.g. customer contracts, synergies, new markets, or even brand. Start looking at available funding options, consider the need for specialist advice such as tax implications and decide how the two businesses may operate after the completion of the deal.
The purchase of a business can be a complicated process especially for first timers and often can be costly with no guaranteed successful outcome. Above all any requirements for funding or investment will require a credible business plan.
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What EFM will do for you if you are buying a business
Accurate and reliable financial data allows a potential acquirer to properly value a target. We will help you with the financials to make sure the acquisition makes financial sense. You will be able to decide better if you want all of the business or just some of the assets and liabilities to avoid duplication of existing capabilities. We will also advise on strategy and post acquisition management as well as support during the due diligence process.
Our financial Due Diligence report and support will enable you to establish the quality of the target’s financials, identify risks, plug gaps and in essence, do the background financial analysis work for your intelligence gathering process. We will also help in preparing financial models using the target’s accounts, your own funding plans and other integration strategies. At this stage, you will need an extra pair of eyes and a credible sounding board, and we will be exactly that, bringing instant credibility to the situation. We will not hesitate to tell you what pitfalls you should be avoiding from our experience.
Contact us to find out more about our Due Diligence process.