GB & Co. has the knowledge and experience to help our clients value their business or determine the value a business they may be interested to acquire.
Is your business ready to sell?
If you are going to sell your business at some point in the future it makes sense to plan ahead as far as possible. You would need to ensure that you get the best price possible. Hence you would need to make your business ready for sell. You may need to take efficiency measure and ensure that you are up to date with all compliance issues.
Selling
Selling a business, as a whole or part of it, is a complex process. GB and Co helps our clients to maximise sales value, determines sales value and identify potential buyers and negotiate payment terms.
Sales Value
There are many ways to value a business. Valuations based on multiples of future earnings or a capitalisation of future cash flows are the most common. A potential buyer may use more than one method to get a range of values for your business, but ultimately the price will be a matter for negotiation. Grooming your business will strengthen your negotiating position.
Prepare a pre-sale memorandum
A pre-sale information memorandum provides potential purchasers with some basic information about the company and its structure. It is the initial marketing document which you will use to attract potential purchasers and is absolutely vital.
GB and Co. can prepare pre-sale memorandums and also in vetting potential purchasers to see which are serious and which are not!
The next stage is to release more detailed information under a confidentiality agreement to these serious potential buyers. This will lead to the negotiation of “Heads of Terms” and then finally the execution of a sale and purchase agreement.
Buying a Business: Due Diligence
The process of buying a business to some extent is very similar to that of selling a business but from the other perspective! The purchaser needs to be sure that the claims made and figures supplied by the vendor are fair and accurate.
The due diligence process allows the buyer to review the commercial aspects of the business such as contracts, customers, employees and to confirm that the claims made are correct.
The due diligence process is likely to review: –
- Past performance and projected forecasts
- Financial Statements
- Valuations of any property and other assets
- PAYE, corporation tax, VAT, National Insurance, compliance
- Major customer contracts