- What is your strategy? Geographic penetration? Buying along the purchasing chain perhaps? Becoming the biggest in your sector or are you going head to head with your closest competitor? Quick growth, to take your business to the next level? Think about how this business will fit in with the rest of your existing business activities.
- Do you want the business assets or just shares in this company? An experienced business broker will be able to explain the advantages and disadvantages of the different options open to you and what the seller is prepared to do.
- What are the benefits to your existing business portfolio? Will you be adding value? Will you be enjoying economies of scale?
- What are the long term implications? Have you carried out a PESTL audit of the current economic client home and abroad? What are the current marketing conditions?
- Ensure the business broker provides a strong Information Memorandum and associated papers before making a commitment.
- What support will the business broker offer? Will they attend meetings? Can they recommend professionals to act on your behalf to minimise risk during the buying process and also keep costs down?
Friday, 9 August 2013
6 Things To Consider When Buying A Business
Wednesday, 7 August 2013
Ten Top Tips When Selling A Business
- Presales planning is an essential part of your exit strategy which can take several years to prepare.
- A solid management structure is essential and migrates risk for a buyer. An organisational chart, succession planning, training, policies, processes and procedures shore up an essential management structure in business. Are good people going to stay? If not have you succession & training plans in place to bring on other talent within your company? If things typically fall apart during your annual holiday, how will things last when you sell?
- Maintaining confidentiality is of upmost importance, leakage can destabilise not only your clients and order book but also your staff and management team. Your buyer will also not want things to be announced too soon either. Two weeks prior to the agreement being formalised is typically the timescale for making 3rd parties aware.
- Shareholder buy-in is essential for a smooth transition. Ensure that things are resolved and in place prior to putting your business up for sale. Dispute resolution at a later stage can be costly and disruptive.
- Reputation within your industry is an important USP which can stand you head and shoulders above your competition. Are you an active member of an industry specific body? Or sit on the board of your local chamber of commerce for example? Perhaps you are an active member of the IoD?
- Carry out a SWOT & business audit, ensure problems are identified and dealt with to negate trips and falls during due diligence. If genuine problems are there, let potential purchasers know in advance.
- Full management accounts will be required and back-up documentation, information on leases or mortgages and so forth need to be provided in full. This is in addition to normally annual accounting information you will be required to produce. Your business selling agent will require this information during the valuation stage so this shouldn’t be a problem. However, if you are looking to sell a year or two down the line keep things in order.
- Be open minded on the deal structure and don’t mention price too early in any negotiations. Employing a professional business selling agent will ensure that multiple buyers are pitched to get you the best deal. This comes with experience.
- A professional business broker should be able to recommend experienced accountants and solicitors. Just because you have professionals in place and have relationships with them doesn’t mean they are best placed to handle your business sale. You wouldn’t ask an employment lawyer to handle a divorce would you? Ask your business selling agent if they can recommend someone.
- Don’t take your foot of the pedal whilst selling your business, your order book and customer satisfaction levels need to remain strong and robust. Adding value during the sales process shows your commitment to the business.
About Us- Gill Evans
 |
Gill Evans is a Chartered Marketer and a Member of the Chartered Institute of Marketing with more than 15 years marketing experience. Previously Gill has worked in B2B and B2C marketing for diverse business sectors including NST Educational Travel to household names such as The Prudential and Premier International’s consumer brands. Following on Gill founded The Cambridge Marketing Company to support small business marketing needs. Gill’s background in marketing covers both strategic planning and tactical implementation across the full marketing mix both on and off line.
Over the years Gill has encountered some interesting marketing challenges including at short notice commissioning Christmas Puddings for the Queen Mother’s regiments serving abroad.
In her spare time Gill has and continues to have a diverse mix of hobbies and interests. Some of her missions have included snorkelling in the Maldives, paragliding in Greece and arresting villains in Cambridgeshire. Gill is delighted to join the Axis Partnership as Marketing Manager and looks forward to improving ROI in terms of marketing plans, delivery and driving the brand forward.
Friday, 19 July 2013
It's Summer and the Possibilities are Endless
The Summer holidays are now upon us, and for many Business
Owners this may represent the one time of year where they are able to exit the
day to day running of the Company for a sufficient period of time to recharge
their batteries and focus on the important aspects in their personal life;
whether that be family, catching up again with friends, travelling or
re-stoking once again their passions and hobbies. This is the one time of
the year when Directors get to throw the shackles and stresses of running a
Company away and enjoy life, but it also presents the best opportunity to
assess their current position, and ultimately answer the question every
Shareholder should ask themselves – when am I going to exit my Company?
In fact ‘when’ is only part of the question, ‘how’ is equally
important. Vendors are often guilty of a spending their time in the
Company focusing on the here and now, important matters that arise relating to
clients, staffing or financial issues, and often the strategic planning for
their personal exit is often overlooked, and regarded as a secondary
requirement to ensuring the Company is a success. Often however the two
go hand in hand more than Vendors realise in a Business Valuation, with the value and desirability of
the Company proportionally increasing with the Vendors awareness and
implementation of a gradual exit.
Thinking of this logically, as a Buyer what Company would you
pay more for – one that the Vendors have focused on growing as fast as
possible, and therefore have concentrated and invested all their time and
efforts in making it a success, but merely serving to creating an
infrastructure that is reliant heavily on their input. Or a Company where
the Vendors have planned an exit for a 3-5 year period prior to taking to
market, ensuring that the operation is fully managed and the clients long term
and secure? Buyers are purely concerned on risk, and no matter how
profitable or fast growing the Company is, if the risk element in any area is
high, the price you will receive will plummet accordingly.
This is why the Summer break is an ideal time for a Business
Owner to take stock of their plans. It may be that you have no intention
of selling for 5 years, but would you rather start to implement gradual changes
working towards a plan to achieve a smooth exit now, or frantically attempt to
‘shoe horn’ them in when you are in discussions with a Buyer and need to sell?
My advice for all Vendors over the Summer holidays is to enjoy
the break, you have earnt it, but spend a few hours contemplating when you are
going to exit, and how. By starting to independently appraise your
Company today will allow you to exit for the maximum amount, and ensure you can
enjoy much longer holidays in the near future!
We can offer you a Business Valuation and provide you with further advice on how to go about your planned exit.
We can offer you a Business Valuation and provide you with further advice on how to go about your planned exit.
Adam Croft, Senior Business Broker
Tuesday, 16 July 2013
About Us- Adam Croft
 |
| Adam Croft |
Adam Croft has worked at the Axis Partnership since 2005 and is a Senior Business Broker. Prior to working for Axis Adam was employed in Her Majesty’s Armed Forces, including serving a tour in Iraq. With qualifications in management, Adam oversees the sale of all Companies currently instructed by Axis and his responsibilities include the training of staff.
Specialising in the sale of businesses within the Recruitment and Healthcare sectors, Adam has been involved in negotiations with Companies located in Australia, America and mainland Europe, and has experience in brokering deals with Groups with multi-billion pound turnovers.
About Us- Richard Haden-Scott
 |
| Richard Haden-Scott |
Richard Haden-Scott is the CEO of Axis Partnership and as founding director remains at the helm, having established the business originally in 1996. Richard’s role within the business encompasses strategic planning, training, overseeing business valuations and advising business owners how best to prepare their businesses for sale, ensuring maximum rewards.
Prior to acquiring the business Richard was an independent business consultant advising various businesses on growth and development strategies and implementing training programs.
About Us- Robin Boxall-Hunt
 |
| Robin Boxall-Hunt |
Robin Boxall-Hunt is our Managing Director at Axis Partnership and has over 13 years’ experience successfully selling a broad range of businesses. Robin has also built up specialist divisions within the Axis Group including the disposal of licensed properties such as Pub’s, Restaurants and Hotels. Having run and sold his business Robin is ideally placed to support business owners through the sale of their own businesses.
Robin’s primary role is to effectively manage the day to day running of the company, which includes staff, clients, and budgets. Part of his role is to utilise company assets and other resources to increase profitability through cost effective and time efficient policies, whilst focusing on the long term strategic planning.
Subscribe to:
Posts (Atom)