Tim Sadka, Partner and Head of our
Corporate Team, takes a look at the best ways to groom a
business for sale.
As the UK economy delivers modest growth, and is expected to remain
on the same path for years to come, it is easy to assume that
business owners are not seeing opportunities to realise their
investments on good terms with acquisition finance in short supply.
The experience of the Rawlison Butler LLP corporate team is that in
fact there is ample funding for, and an appetite to support, the
acquisition of well managed businesses.
The sale process of a business is for many something only
experienced once and, rather like selling a home, it will be a
process that either goes well or badly with little in-between. To
get the best offer does not guarantee the best price will be
achieved. Before a deal completes the buyer will want to verify by
due diligence all is well and as has been represented during the
pre contract negotiations.
To invite the best offer and to maintain it we recommend clients,
in anticipation of a sale process, work with the businesses legal
and financial advisors to groom the business for sale. Seven best
practices are:
- Develop a credible business plan;
- Employ managers in all key positions;
- Illustrate that the seller(s) is/are not needed day to day in the business;
- Maintain accessible business records;
- Use systems that can report quickly and reliably;
- Understand your management information; and
- Engage professional advisors who have a track record of success.
First published on 26 April 2012 in 'Business Matters' within the West Sussex County Times
This document is provided for information purposes only and
does not constitute legal advice. Professional legal advice should
be obtained before taking or refraining from taking any action as a
result of the contents of this document.
