Thinking of Selling your business?
- Looking to retire or is it time for a change of direction - to step off the treadmill?
- Or have you been approached directly by an inquisitive purchaser and feel on your own in the negotiations? We can help!
Call AMS for a confidential, free valuation and advice on your next step.
We provide a comprehensive personal, experienced, proactive sales and marketing strategy to find a purchaser. With advice and help throughout the pre-sales process.
Once a purchaser has been found we negotiate the sale price, project manage the sale, guiding and assisting the many different parties such as solicitors, accountants and the purchaser to a signed deal.
Our services include:
- Grooming the business for sale
- Assessing the tax implications on the disposal
- Drafting an information memorandum
- Targeting buyers
- Managing the deal through due diligence
- Driving the deal to completion.
- Buying and opening the Champagne on Completion Day.
We also maintain and constantly update our knowledge of the acquisition criteria of the range of purchasers including:
- Private equity firms
- UK trade purchasers
- Overseas trade purchasers
- Management Buy-out teams
- Corporate Financial Purchasers
Why might you consider selling your business?
- You might have received a tempting offer.
- Your fellow shareholders may be keen to realise their investment.
- There may be no obvious succession within the family or company
- Perhaps you want to realise some capital for investment or retirement.
- The next stage of growth for your business may require additional capital
- Running the business is simply less challenging or rewarding than it used to be.
Needless to say there will always be a number of factors to consider in making the decision to sell including whether you will go it alone or instruct a professional, experienced company to assist you. The sale process is demanding, so it is important to understand and agree your motivations from the outset before the process commences. Whatever your reason for deciding to sell, probably the most important objective is to achieve the highest price for your business, whilst protecting your employees, and ensuring the business survives and prospers after sale. Like most business owners, you see the sale of your company as the ultimate reward for the risk you have taken and the effort that you have put in to the business over the years, it is your pension nest egg.
Is now the right time to sell?
You might think twice about selling if the income your business will generate is less than you require.
Is there a ready market for business sales for your type of business? Some business sectors are hot, and some are decidedly chilly. Our experience can assist you with where your business fits. Hot or cold ?
It is true that general economic conditions should influence your decision. However, the stage of development of your business and the dynamics within your industry sector are likely to be even more important factors. Remember, there is always a market for a quality business.
Here are some key issues to consider assuming that AMS recommend that it is a suitable time to sell and the market conditions are good.
Appointing advisers
Whilst it is not always necessary to appoint an adviser until the decision to sell your business is made, it is sensible to meet with potential advisers prior to making this decision. This will allow you the opportunity to assess potential advisers' capabilities, explore the range of options available and receive an independent view on the potential value of the business for sale.
Once the decision to dispose is made it is important to appoint a professional adviser to help prepare for the Sale process. Legal advisers should also be appointed at an early stage and other advisers such as property, environmental, pensions and tax advisers should also be considered, as appropriate. In general, professional advisers would prefer to be involved in the process earlier rather than later, and, since the bulk of their fee will be success-related, this is something vendors should take advantage of.
Tax
How much you are likely to pay in Tax and what you will be left with after all the fee's are paid will be a key influence in your decision to sell.
Capital Gains Tax (CGT): the taper relief regime means you could pay an effective 10 per cent on your capital gain on the disposal of qualifying business assets after just two years of ownership. There are a number of exceptions from this and our Tax Planning Service will assist you.
To gain taper relief the deal will need to be a Share sale if you own a limited company. It should be noted that conversely there are considerable tax deductions available on intellectual property and goodwill for buyers to structure the deal as a trade and assets purchase. This is another area that AMS will assist you when negotiating an asset sale on your behalf.
How long does it take to Sell a business
Bear in mind that a typical sale process will take nine to twelve months to complete, unless you operate in the Care Sector which is particularly hot for Sales at the moment
Finding a Purchaser
Through our experience and market knowledge purchasers are either sourced from our existing contacts or found via aggressive marketing of your business sector.
We shortlist and target the buyers to ensure a competitive edge and ensure the maximum Sale income.
Negotiating the deal.
In the mergers and acquisition market there are those that can sell businesses, sometime know are "rain makers" and those that will always just be average. AMS can provide deal makers and then negotiators who have a proven track record. Once the deal has been agreed we the move onto the actual sale process.
Project management to completion
Following the award of exclusivity to a preferred bidder, the final task is to take the deal to completion. In a smooth transaction, this stage should simply be the point at which the 'i's are dotted, 't's are crossed and hand over arrangements agreed.
However, although a final offer will have been received the purchaser may attempt to use their own due diligence to reduce the price. Anticipating the areas where the purchaser will try to challenge the price allows AMS to deliver a robust response.
The period of exclusivity is usually the most fraught of the whole transaction. Both sides are working extremely hard to complete the transaction and minor problems can soon be exaggerated out of all proportion. At this time the experience of AMS is critical. Their ability to think creatively about practical solutions is extremely important. In addition, it is often necessary to smooth ruffled feathers, both with the vendor and with the purchaser, to keep the deal on track.
The deal makers other roles at this stage are to ensure that both due diligence and legal documentation progress to the agreed timetable and with two set of solicitors and two sets of accountants this always proves challenging.
