What are earnouts, why are they used? Earnouts maximise value for the seller of a business and de-risk the transaction for a buyer. Businesses are valued and priced by a buyer largely on past performance (although internally a buyer will have a value based on future performance) whereas a seller who understands the prospects and opportunities […]
Integration Strategies of Newly Acquired Business
What is integration strategy, do we have one and can it be implemented? Large corporates have teams of people who get engaged in the integration of a new acquisition although most midmarket acquisitions will keep an eye on costs and minimise the number of people involved leaving the process to line managers. Some may have a […]
Prepare your business for sale – Important Documents
Shareholder Agreements/Articles of Association The sale of a midmarket privately owned business is a complex process and you need to prepare your business for sale. In some instance a company may be many years old and the location of the articles of association are not known, there may be a shareholders agreement and loan agreements. When […]
Is Your Business Investor Ready?
Is your business investor ready, what does this mean, do I need M&A Services? What will attract a company to invest in your business, is it investor ready or are you selling a turn around opportunity, is your business investor ready? Naturally the price will be heavily impacted by the type of buyer your business […]
Valuation – “What is the Value of My Business”, How is it Valued?
How much would you pay for your own business? How do advisors answer a business owners question “what is the value of my business, what will we get for it”? The easiest way to answer is to ask the owner how much they would be willing (truthfully) to pay for their own business? Very often there is a significant […]
How to Sell a Business for Maximum Value
How to sell a business and to achieve maximum deal value requires a sound understanding of how you create and communicate the value of: the key drivers in your business? your differentiation from your competitors? your competitive advantage? How do all these factors add together as to how to sell a business for maximum value and how will they be valued by a buyer? The […]