Buying a business
Our team of experienced professionals can help you research, negotiate and complete a business acquisition or merger.
Corporate Finance is a term people often misunderstand; in concise terms it means building value through business planning. It can involve raising capital to help you grow, financing expansions and disposing of your business.
Corporate Finance covers many of the complex and critical issues faced by owners and management teams throughout the business lifecycle, including:
Business value is the estimated economic value of a business or a company; a Business Valuation is the process of determining this economic value.
Business Valuations involve a comprehensive overview of the business and analysis of how a company compares to others in the industry.
How to value a business – valuations are not only based on the profits of the current business but also their future potential profits and potential for scalability.
There are numerous methods of valuing a business (sometimes known as financial modelling) and some of these do not take into consideration the complete commerciality picture. For example, a company making significant profits with a few large customers could be worth less than a company making the same profits but with a large proportion of smaller customers. Therefore, an optimal method of valuing a business involves using a few different financial models and calculations in combination with other market considerations to build an accurate picture of the value.
Activities involved:
Mergers and Acquisitions (M&A) is a term which tends to be used interchangeably but ultimately it applies to the consolidation of companies through financial transaction (Mergers) or purchasing another company outright (Acquisition); this could apply to purchasing assets of another business, tender offers for its stock or hostile takeovers.
A business may seek to merge with another firm or acquire another business for a number of reasons, such as, to expand their market share, diversify products, reduce risk and competition, and increase profits.
Common types of company mergers include conglomerates, horizontal mergers, vertical mergers, market extensions and product extensions.
Mergers and acquisitions can pose significant risk and therefore should be entered into with highest levels of due diligence and consideration.
Activities involved:
Business value is the estimated economic value of a business or a company; a Business Valuation is the process of determining this economic value.
The measurements and methods of valuing a business vary and there are many reasons as to why the determining the fair value of a business may be necessary.
Although the value is inherently based on monetary values, there are also several qualitative factors which will have an impact on a company’s value.
If any of the non-quantitative elements are improved, then the overall value of the company will also increase.
Understanding the market position and any intellectual property of the company will encourage an accurate and true value to a potential acquirer.
There are various reasons why you may look to building more value in your business, including plans to sell your business and hoping for a premium price.
Growth strategies are an important element of working to build value in your business and can extend to performance improvement plans.
Activities involved:
A business valuation is often used when selling a business to help determine the fair market value of the company. This can be useful for both the buyer and the seller, as it can provide a starting point for negotiations and help ensure that the sale price is fair and equitable. A business valuation can also be helpful in determining the value of the company’s assets and liabilities, which can be important information for both parties to consider during the sales process.
To sell a business, the owner should first determine the value of the business through a professional valuation and working with one of our experts. Next, development of a marketing plan to attract potential buyers and promote the business for sale will be produced. Once potential buyers have been identified, negotiation of the terms of the sale with the buyer will take place through to completion.
When looking to grow through acquisition, our team of experts will help research and identify potential acquisition targets. This may involve looking for companies in the same or related industries that have complementary products or services, a strong customer base, and a good track record of financial performance. Once potential targets have been identified, our team will develop an acquisition strategy and approach the owners of the target companies to discuss their interest in acquiring the business. If the owners are interested, we will then negotiate the terms of the acquisition and finalise the transaction.
It is important when buying or selling a business to speak with a qualified professional, to ensure that the transaction is in the best interests of the company and its owners. Our advisors can provide objective advice and guidance on the legal, financial, and tax implications of the transaction. They can also help with negotiations, due diligence, and other aspects of the process to ensure that the transaction is successful and meets the needs of all parties involved. Overall, our advice can help to protect the interests of the company and its owners, and can increase the chances of a successful and beneficial outcome.
