It’s usually been done before
So lets answer some questions…….
Meet some of the team
Frequently asked questions
Negotiation Skills and Tips- in a diagram
What industries do you specialise in?
We specialise in the Creative Services but we also sell more and more companies working in different sectors. We take pride in our ability to learn the fundamentals of virtually any industry quickly. Some of the markets we have operated in are manufacturing and distribution, IT, biotechnology and telecommunications.
The client always brings industry expertise to the table. What we do is identify the opportunity and the target companies. Our expertise is in following a M&A process that is very adaptable and very successful.
Why is Research so important?
You need to assess the opportunity you are dealing with in the context of the sector the business operates in. The research process is usually done in a few days at the beginning of the M&A process. It provides guidance on how to write the Memorandum. you need to address how the business sector is developing and how the leading companies are adapting. You then need to put your particular opportunity into that context.
Research identifies buyers. Once we have a data base of potential buyers we analyse these companies by examining their financial records and how they present themselves on the internet. We often undertake ‘Market Research’ to speak to the main companies in the sector and again this gives us a better insight into what is happening.
Why do I have to have reports on Marketing, internet presence and new business?
You don’t. Many companies already have them but in some situations they are necessary. We can get reports produced very quickly. There is no real down time in the process. But the reports add weight to the sale opportunity. They tell a buyer you are aware of what is required and it allows the buyer to be guided into what the real opportunity is.
What if you can't find target companies?
We can always find the target companies.
When do we decide on a deal structure?
After the initial assessment. The research will have been done and key companies will have been analysed. Your accounts and the impact of your opportunity on a target buyers business will have been assessed. We can then value and suggest deal structures
How does the deal close?
Selling a company is a process of giving accurate information and handling the inevitable list of queries that will throw up. If you provide the information and answer the questions you eventually get to the point where there is nothing else to do but do a deal.
What guarantees do I have to give?
It depends on the deal you have agreed and the buyers concerns. It is usual to give warranties against unknown liabilities and most deals require a personal Disclosure letter where you confirm specific questions the lawyers might have.
How long does it usually take to negotiate a deal?
The process from begining to a deal on the table will normally take 4-6 months. Once a deal is agreed the deal is handed over to accountants if a due diligence report is required and to lawyers who produce the contract. How fast this part of the process depends on the professionals engaged and the size and type of deal they are dealing with
When do the lawyers and accountants get involved?
After both parties have agreed a deal and we have produced a Heads of Agreement. Of course your accountants will probably have produced a lot of information prior to this stage as part of the information required to sell your business.
What happens about control through an earn-out deal?
Once a deal is done even if it is an earn-out where payment is dependent upon certain factors, you no longer have control and you have to adhere to what the buyer and yourself have agreed.
How many deals have you done and who can I call?
We have completed hundreds of deals. All M&A firms work under strict confidentiality rules. We are not allowed to talk about any client’s business. we can of course talk in general and describe many different situations but putting new potential clients in touch with old clients is not an action we can do.
Want a chat about a valuation?
Jason can usually give you a good idea. But remember the research results on your sector and how your opportunity stacks up will have an impact.