Deal and Event advice

Business or Share Valuation

Valuing a business, or just a share of it is a very complex process. There are a number of methods that can be used and all have inherent flaws and uncertainty, as the only truly accurate valuation is the one a willing buyer and a willing seller agree.

Funding and Re-financing

Having the right type and amount of business finance can often be the difference between success and failure. The range of funding options and number of providers are now so large, that it will almost certainly require expertise to get the right package or if there are to be changes. So if you are looking at your existing funding, or looking to refinance, we can help.

Management Changes

Whilst there is a complex issue when ownership changes occur, any changes in the key people that run the business may also require careful management. Tax efficient compensation packages, recruitment of suitable replacements and managing the impact on colleagues and key stakeholders (The Bank for example) are really important issues to manage.

Family Changes – Divorce, Separation or Death

Sadly, one aspect of family businesses is that there can be a breakdown in the key relationships. That is most common with separation and divorce, but can also affect children and siblings. Understanding the impact this has on the business, the individuals and key stakeholders such as the Bank and employees, is really important.

Transaction Support

Acquiring A Business Interest or Share

Buying a share of a business is complicated, and often a once in a lifetime event for many. If the share is a minority (less than 50%) it can expose the buyer to high risks. We can help with all aspects of identifying potential targets, negotiating the deal and the commercial considerations or understanding the terms and merit of the shareholders agreement. If you are thinking of buying a share in another business, make sure you get advice regardless of the amounts involved.

Buying A Business

If you are looking to buy another business we can help you to identify and evaluate potential targets and to make confidential contact with any suitable options. If a deal looks possible we can then help with negotiating the terms of the deal, and funding needs, and all the practical aspects of taking on someone else’s business, and the important due diligence so you know exactly what you are buying.

Selling A Business

Most people sell a business only once. They get just one opportunity to get it right. Whether selling to a trade buyer such as a competitor or supplier, or to a management team from inside or outside of the business (MBO/MBI), it is important to prepare fully for the sale long before the deal happens.

Management Buy In and Management Buy Out

This is a very specific ownership change where the existing management ‘Buy out’ the current owners, or a new management team ‘Buy In’ to the business. Whilst we will often act for just the owners looking to exit, we can and do on occasions act for both sides to find a mutually beneficial deal.

New Business Structures

By far the most common ownership structure is a single limited company that undertakes all the trading activities and owns all the assets. We work with clients to expand that to include holding companies and multiple subsidiaries where the commercial and risk protection benefits are worthwhile. We also work to help sole traders and partnerships to become LLP’s (limited liability partnerships) or to incorporate into a company structure.

Succession Planning

This is similar to the generic ‘exit planning’ but usually refers to the handover of the business to family or senior employees. Again, there is a clear focus on the right deal and the tax impact for both sides, but it goes further than that.

Exit Planning

At some point all business owners will exit the business. The objective should be a controlled exit to realise the maximum value, rather than working until the very end and hoping for the best!