Corporate Finance

Corporate finance is a term used to describe the process of buying or selling a business.

Buying a business

Buying a business is a great way to get your hands on going concern without having to start from scratch. Organic growth can take a long time so buying a business with an established market presence and income stream can sometimes be a better option.

Although there is a clear advantage to buying an existing business, it is not necessarily an easy option. The cost of buying an established business will often be higher than a new start up because you will need to pay for the business “Goodwill” which is essentially the value of the existing customers and trading operation. You will also be expected to pay for the “Net Assets” of the business.

Historical performance is an indicator but does not guarantee future performance therefore care is needed. It is more important to consider future performance than past performance.

With our experience and support we can help you to achieve a successful acquisition process and avoid the common pitfalls. We can also help with Management Buy Outs (MBOs) and Management Buy Ins (MBIs).

Due Diligence

To provide assurance that the acquisition is right for you, we’ll carry out a due diligence assessment. We’ll tailor your report to fit the size and complexity of the deal and give close consideration to the most efficient tax structure.

Our support services include;

  • Assess the feasibility of the potential acquisition
  • Review the target’s financial reports
  • Complete a market review of including competitor review and, S.W.O.T analysis
  • Value the potential acquisition, so you don’t pay over the market rate
  • Identify Risks and Opportunities
  • Produce flexed business models to identify the impact of difference scenarios
  • Focus and define your target criteria and identify acquisition opportunities
  • Providing advice on funding the deal using the best mix of debt and equity
  • Help you to negotiate the deal in conjunction with your legal advisors

Selling a business

If you are considering selling your business, you can only do it once and therefore you only get one opportunity to nail it. This particularly matters when it comes to getting the best price and the most tax efficient outcome.

To maximize your return you will need to adopt a structured approach and prepare accordingly.

We can help by;

  • Improving your profitability and therefore your businesses value
  • Structure the transaction in the most tax efficient manner
  • Conduct a market appraisal to assess if it is the right time to sell
  • Calculate an indicative business valuation
  • Co-ordinate the due diligence process between both partied
  • Help to negotiate heads of terms with the purchaser and their advisors

For more information on buying or selling a business please contact us