M&A Expertise: Guiding You Towards an Alternative Future for Your Business.
Buying or Selling a Business? We Can Help
Are you planning to sell your SME within the next few years? Are you looking to buy an existing business to expand your current company? IBD Business Advisor Siobhán Lavelle looks at how ibd’s Mergers & Acquisition Specialist Team can support your goals and work with you to achieve the future you want for your business.
Despite uncertain times for the UK, the ebb and flow of UK business ownership continues, with mergers and acquisitions continuing to drive change across almost every sector of our economy.
Sales of SMEs continue unabated, as business owners seek to sell all or part of their business for a variety of reasons. Whether the impetus is the disposal of assets, to release management capacity, to raise funding for alternative investment opportunities or to fulfil an exit strategy, small business owners are vulnerable when they enter the M&A arena, often needing specialist skills that they don’t have within their business.
Successfully matching potential investors with possible partners requires the expertise of an experienced M&A adviser. We work with businesses from the first moment they consider a sale to the moment of completion and beyond.
Paul Weeks, ibd adviser and M&A specialist, explains the initial support
we can provide. “Often business have a huge learning curve around what they need to do to prepare for sale. We work with clients to prepare them thoroughly, covering aspects such as management reporting, process improvements, profit analysis and a complete health-check of their business, ensuring there are no surprises that may halt a potential sale. Our clients are then in the best possible position for us to find and negotiate a potential sale on their behalf.”
A Buyer’s Market?
Motivation to buy an existing business varies, from increasing productivity or acquiring new technology to market expansion, cost reduction, or to gain competitive advantage.
Private equity investors are actively looking for investment opportunities and are willing to pay well for the right business and overseas investors continue to want to acquire UK businesses - being proactive is essential to finding the right opportunity, explore options for potential buyers, relieving the heavy burden of market analysis and risk assessment, and preparing the way for a smooth due diligence process. M&A experience is key to identifying and capitalising on the right opportunities, and we also bring the added advantage of an objective assessment of the potential fit for the buyer.
Ian Perry, ibd adviser and M&A specialist expands on this. “As we often act for both a buyer and a seller, we are perfectly placed to bridge the two businesses. Negotiation and management of any deal is always complex, and we can often see a way through complexities that business owners are too close to identify. The process can be time-consuming and expensive for businesses. We minimise the risk of failed negotiations as we can build relationships with all parties involved to keep health-check dialogue moving forwards to completion.”
Experience is Essential
The M&A journey is complex, challenging and not without risk. While the potential to transform the growth and future prospects of a business, or to fulfil an exit strategy, is huge, navigating the negotiations, due diligence, financial and operational scrutiny is not for the faint-hearted. Simultaneously, it’s vital for all parties to maintain business as usual to preserve the viability of any potential sale or partnership.
Small businesses are often vulnerable: a powerful buyer will bring intense legal, financial and operational scrutiny to every aspect of the business, and ibd has a network of specialist advisors across the UK who support SMEs through the complex and challenging negotiations and requirements of this journey