When you’re looking for a business to buy, it’s important not to lose sight of what matters most. Don’t let excitement cloud judgement. Conducting the correct due diligence when buying a business helps you understand if the opportunity is really as good as it looks on the surface.
Here are the steps we always recommend you go through when you’re considering a business to purchase. Make sure that you’re getting the right deal for you, that all parties benefit, and that the deal gets over the line.
Here’s what you should be scrutinising before concluding any deal.
Of course, you need to check the numbers. Get to grips with financial statements, tax returns, and analyse the company’s cash flow. It can be useful to look at the past three to five years to spot trends too.
Are revenues consistently growing? Has there been any unexplained dip in profits? Also, what’s the debt situation? A balance sheet overloaded with liabilities could be an issue.
Thoroughly analyse the assets. Look at physical assets like property, machinery, and inventory, as well as intangible assets like intellectual property and brand reputation. Make sure they are valued accurately and that ownership is clear.
It makes sense to get your accountant involved too at this point. Let them work through all the documentation to create a clear picture for you. The numbers only tell you historical information of course, but they can help you to create a new strategy for ongoing growth and also help you uncover any red flags that you need to be aware of pre-purchase. Not to mention they will likely be the main factor when it comes to purchase price.
Legal due diligence is incredibly important. Check for any ongoing or potential litigation. Are there any disputes with suppliers, customers, or former/current employees?
Are all licences, permits, certifications etc. up to date and are all the necessary ones obtained? Make sure you can access all the relevant documentation.
Perhaps most importantly, scrutinise the contracts with key suppliers and clients, and the employment contracts to make sure the business has adequate protection.
Understanding the day-to-day operations can reveal a lot about the intangible value of a business. Try to evaluate the efficiency of current processes, understand how the key people operate and the dynamics of the team, seek to establish if the supply chain is robust, and identify any recurring issues.
Look to assess the quality of the products or services. Analyse customer feedback and reviews. This could include spending some time in the business to watch it in action too if that’s a possibility.
People are the biggest factor to any business’ success. This however can be the most complex aspect to evaluate without being involved in the business, but you should be able to review the structure of the organisation and personnel trends.
High turnover rates can be a sign of deeper issues. Try and understand if the company culture is right or whether the working environment will need an overhaul – and what the costs and the time implications would be.
Consider whether the current team will stay on post completion and whether they have the skills to help grow the business. Sometimes, key staff members leaving can impact the business more than any other discrepancies.
Evaluate the quality of the relationships on both sides. Are vital customers on stable contracts so that you can count on that revenue continuing when the current ownership departs? Are important suppliers reliable and happy to continue the relationship post completion?
Understanding this could make the difference between success and failure.
As always with something as important as due diligence when buying a business, consult experts every step of the way. Your accountant, the relevant legal professionals, and a reliable business broker – which is how we can help.
Business Partnership is a network of business brokers covering the UK. Find your local expert here. We will provide a free valuation of your business and can work with you through every step of the sale process – including being able to recommend legal professionals from our contacts.
There’s never any obligation and discussions are always confidential. Get in touch with us today to find out more.
Acquiring a business successfully involves multiple factors. And often, the difference between a good deal and a great one comes down to finding a motivated seller.
Over the years we’ve seen first-hand how pivotal this can be. Here we’re going to delve into identifying motivated sellers and all the benefits this holds when you’re looking to secure your next investment opportunity.
Simply put, an ownership that needs or wants a quick exit. This could be due to circumstances including:
Motivated sellers by nature need to find a quick sale, so they’re often inclined to be more flexible in the negotiations. They want the best deal depending on their reason for engineering a quick exit but will often be more willing to accept concessions. It’s not all about the sale price itself, a lot of different terms can make up the overall deal.
Positive or negative, motivated sellers are often more transparent and forthcoming about their businesses. They know the urgency of their situation and therefore recognise the need to make sure things don’t take longer than they need to. This leads to motivated sellers sometimes providing more comprehensive financial records, operational insights, and other information upfront that you may be left waiting for from less motivated sellers. This allows you to start your due diligence sooner and more cost effectively.
When you find a suitably motivated seller there is less chance of the deal falling through. Motivated sellers are motivated for a reason – they are ready to make a change. They want the deal to happen as much as you do – they’re very unlikely to have a sudden change of thought. This creates the perfect balance whereby the buyer and seller are motivated by the same objective – to make the transaction work – and to make it work fast.
This comes down to recognising the unique motivations of the seller. Why are they looking for a seamless, swift exit, but also take the time to understand what they need a deal to look like? How can you use this knowledge to help move things along and create a more value-based transaction for all parties? And, how as the buyer can you use this insight to create new opportunities for the business once you complete your purchase?
You can research online or become a savvy networker in your area by attending plenty of business networking events, but by far the quickest and most effective way is to find a well-connected expert in the area.
At Business Partnership we specialise in connecting buyers with motivated sellers and facilitating mutually beneficial transactions. With our extensive network of partners across the UK and personalised approach we can help you find and secure your next venture.
Call our team on 01606 535 024 or find your local partner here.
We are delighted to have bolstered our Midlands team with the appointment of a new regional partner covering Worcestershire, Gloucestershire, and Herefordshire.
Having worked at senior management and board level, Simon Glover brings a wealth of knowledge to the franchise role including experience of business sales, acquisitions, and succession planning.
Simon set up his first stationery business in 1996 at the age of 26, selling a range of items from a catalogue. He then moved into the printing industry and guided his company through many changes including the big leap forward into large format and signage.
A combination of organic growth and shrewd acquisitions ensured the business grew from start-up to more than £4 million. Since selling the company five years ago, Simon has focused on sharpening his skills as a sales and marketing consultant and has advised on many successful exits and acquisitions.
“As soon as I saw the franchise had become available, I thought it was perfect for me,” he said.
“It was a massive leap of faith but I’m really loving doing this role full-time and sharing my experience of the joys and potential pitfalls of selling a business.”
If you would like to connect with Simon, you can reach him on simon.glover@business-partnership.com(Opens new window) or connect on Linkedin.
With companies still getting to grips with Brexit and the pandemic having a huge impact on businesses globally, it is easy to understand why most UK businesses have struggled in recent times. However, over the past few years, some businesses have proven themselves as a more secure investment than others, despite the world’s events of recent years. So, if you’re looking to invest in a business, here are the five sectors that are set to – or already are – strong post-pandemic:
As the country emerges from the pandemic, the engineering sector can certainly hold its head high. During the pandemic, engineers played pivotal roles in keeping industries up and running behind the scenes. Now they play a vital role in creating a more resilient future through building and maintaining national infrastructures (e.g HS2, wind farms) and innovating, designing and creating new products that will profoundly improve quality of life.
Businesses in the engineering sector have played a critical role in allowing the engineering sector as a whole to thrive during the pandemic. For example, businesses like Snap-on Tools manufactured and distributed quality tools to the automotive, marine, railroad and engineering technicians ensuring businesses continued to operate.
The value of the physical assets within engineering also make it an attractive investment for many.
It should come as no surprise that the e-commerce sector features on this list. E-commerce not only enabled businesses to survive the rampage of the pandemic but has also unlocked vast opportunities and possibilities for entrepreneurs post-pandemic. The sector has proven that it will not only survive in the coming years but will continue to thrive in the post-pandemic world as customers are now comfortable with shopping and transacting online.
Only 17.8% of sales were made from online purchases two years ago. However, the pandemic has disrupted the status quo. According to Shopify, the global e-commerce market is expected to total £5.55 trillion in 2022. That figure is estimated to grow over the next few years, showing that borderless e-commerce is becoming a profitable option for online retailers. Normality may have resumed, but 38% of consumers expressed their desire to continue online shopping and visit physical stores simultaneously. Whether you are looking to buy a web design business or a genuine e-commerce company, these investments promise to be sound opportunities.
An infrastructure that supported life in lockdown, technology has proven indispensable over the past two years. Working from home increased reliance on videoconferencing and virtual project management and communication, which has created an opportunity for technology business to take advantage of.
In a progressively digital world, embracing a new technological era starts with support and training both to create new digital technologies, but also to support the new users who will inevitably migrate to the.
With the pandemic forcing us to reassess our priorities, personally and professionally, the Great Resignation has seen employees switch careers en masse due to burnout and greater job opportunities. HR and recruitment businesses are now busier than ever before. Employees adjusted to new ways of working, increased flexibilities and had time to reflect on what they want from an employer. For businesses, retaining their top talent and ensuring their staff are happy became vital. Outsourcing to HR businesses has been fundamental in ensuring employees’ needs are met and reducing the risk of losing people.
Employers looking to snap up the new talent on the block have also invested heavily in recruitment teams. Hiring staff is considered one of the most challenging aspects of running a business, and companies regularly waste thousands of pounds and months of time just to interview people who are nowhere near fit for either the role or the company culture. Outsourcing to a recruiter can alleviate these problems, resulting in a more robust recruitment process that saves both time and resources.
The HR and recruitment industry has massively benefitted from the accelerated digital transformation, with a record number of job vacancies and significant changes in candidate expectations, all of which will ultimately shape businesses’ strategies as they look to plan for the next 12 months and beyond.
With regular cleaning playing a vital role in limiting the transmission of COVID-19, every business had hygiene as their number one priority during the pandemic. Social distancing rules and regulations meant that cleaning companies were increasingly called upon to remove the grime and harmful bacteria in sectors like retail, education, and healthcare, to name just a few. Commercial cleaning services like The Kleaning Company, JAN-PRO and Poppies played a crucial role in ensuring these key services were delivered.
Post-pandemic, it has remained essential for businesses to make sure employees are safe on an ongoing basis. Therefore, the professional corporate buyer has needed to invest in cleaning contracts for the long term. Commercial cleaning businesses are one of the big winners post-pandemic.
Without doubt you should be investing in a business which excites you, which motivates you and gets you out of bed in the morning. No matter how secure the Engineering sector is, if you can’t relate to it, there is an argument that you shouldn’t be investing in it. The rest is down to your risk profile. If you like to take risks, you might want to turn around a company which is struggling. If you’re risk averse, you need to start with secure, stable businesses.
So whilst these sectors how good signs of stability and are ripe for investment, there are still many other nuances which come into play before buying a business. So get in touch with your local Business Partnership office and talk it through.
According to data from the Office of National Statistics, post-pandemic labour non-participation rates are now rising in the UK after having fallen continuously since 2007. More than 1.3 million people are leaving their jobs this year and moving on to new opportunities. While many are slipping into retirement, others are looking to buy businesses, leading to a flurry of interest for business brokers.
Since 2000, interest in business buying has been most rampant among the over 50s. This group, who are finding it challenging to get full-time work in the conventional corporate economy, is branching out and looking for new opportunities. “Oldpreneurs” are starting businesses that don’t age discriminate and give them the opportunity to embark on a second career for as long as they feel fit and healthy.
New pension freedoms are also making their impact felt. Many older employees can access their retirement funds without penalties from age 55 onwards, allowing them to get hold of lump sums they can then invest in businesses. Often, they have enough seed capital available to make an initial purchase before attracting additional VC money to expand.
Some of the 800,000 over-50s who left the labour force last year are also using redundancy pay to launch firms. Many are investing in the types of businesses they wanted to start when they were younger but couldn’t because of the demands of traditional employment. Consultancies, recruitment agencies, and even ice cream shops are all popular choices for business buyers in the Yorkshire area.
For others, buying a business is a matter of economic necessity. Figures show that around half of all jobs created since the 2008 financial crisis were self-employed. And while these arrangements gave workers more freedom, they also reduced their take-home pay by around £60 per week. Now, many older workers simply don’t have the nest egg they need to retire, so continuing to work is a necessity.
Unemployment is also a problem. Official figures suggest that there are 2.9 million people between the ages of 50 and 68 in the UK who aren’t in regular work. But when Age UK surveyed these individuals, they found that only 700,000 of them considered themselves “retired.” The remainder wanted to find work again but often couldn’t. The number of unemployed women over the age of 50 increased by more than 50 percent at the start of the last decade, while the overall unemployment rate only rose by 1 percent.
There are also problems endemic in some of the UK’s most dynamic sectors. Take the City of London, for instance. In the past, it attracted workers from across the age spectrum, combining the crystallised intelligence of seniors with the youthful exuberance of juniors. Now though, most people who work in the square mile full-time are under the age of 50 (and capable of putting in 60-hour weeks for the big firms).
Despite all this, the proportion of self-employed over-50s working in finance and business services is high. These professionals work the same hours as regular employees but they aren’t on the company payroll. Many either operate their own firms or buy consultancies previously run by others, using their expertise to take up the reins.
You can understand why this trend is playing out. When an older business leader becomes their own boss, hiring bias disappears. Purchasing companies frees them up and lets them extend their careers longer than mainstream corporations would allow. Owners can operate a company at any age and take on employees without the risk of being “let go” and replaced by younger candidates.
Established firms often regularly seek the advice of industry veterans, even if they would prefer to keep them off the payroll for strictly economic reasons. The growth of independent financial consultants in and around London is a testament to this. Older people have considerable expertise and experience that firms can’t acquire from the conventional labour market.
It would be wrong to assume that this trend is playing out exclusively in either London or finance. It’s also happening in Yorkshire and all over the UK. Large firms want to hire younger people, but they also want veterans to lend them a helping hand when they get stuck. Equally using their skills in more traditional business sectors is a boom area. And that’s what’s assisting acquirers and leading to a lot more business sales.
If you’re planning on buying or selling a business in the Yorkshire area, get in touch. Our partner Philip Drazen provides help across this area and ensures that you are well supported throughout either a buying or selling process. And why not sign up to our monthly newsletter for the latest sales on the market.
We have boosted our operation in the North of England with the appointment of a new regional partner for West Yorkshire.
Leeds-based Philip Drazen (above) brings more than 35 years’ experience in advising companies on their route to exit to his new role. He will be assisted by business partners Nigel (right) and Tom Jones, who have worked in the refrigeration and air conditioning industry for over three decades and have considerable knowledge of owning, selling and buying businesses.
A former managing partner of a regional law firm, Mr Drazen is a well-known and respected figure in West Yorkshire and boasts a vast network of connections through his successful and continuing Business Exposure Groups and Entrepreneurs Club ventures.
“I’ve sold businesses for the last 22 years but have never done it with the support, infrastructure and database that Business Partnership provide as one of the largest independent companies in the sector,” he said.
Mr Drazen, who will be using his skills to focus on SME business to business sales, including traditional and tech companies, said that the pandemic has resulted in business owners falling into one of two camps.
“Many people have been re-energised as they have seen competitors disappear and are now planning to grow by acquiring businesses. However, there are a significant percentage who have re-evaluated their priorities and are now keen to sell. Both present myself and Business Partnership with lots of opportunities to guide them through a difficult and emotional process,” he added.
Good employees are vital for the lasting growth and success of any business. Irrespective of what kind of business you own, a few key employees can either make or break your business. Prior to putting a business on the market, sellers should take every step possible to build a great team and think about how their employees will impact their company. They also need to recognise the importance of factoring in employees when considering the acquisition of their business as this could determine or contribute towards the market value.
When buying a business, one of the most important elements to be evaluated is its employees, and they are often overlooked once the deal is completed. Repeatedly, buyers and sellers forget about their most valuable asset – their personnel, the current employees. They not only provide key insights into the overall customer experience, but they will also help the new owner build their business. Keeping a team of trusted, respected and motivated employees on board can pay off as they will know the business inside out and have the expertise that will help the new owner.
After completing the purchase of a business, there are some new owners who will look to start afresh with all new employees. Making such changes can be a risky approach that could backfire, so it might be better to consider retaining existing employees when buying a business. When reviewing employment strategy, it is important to consider the following factors, as this could have significant outcomes for your organisation’s future success.
Whether you are acquiring a smaller business with less than 10 employees, one with 100 or more, part of your due diligence as a buyer is to identify the strengths, weaknesses and skills of the existing workers, starting with the leadership team. Find out what is working well and identify if there are any skills gaps in the business and whether everyone currently placed in the role is best suited to their abilities and expertise.
It is then important to identify key performers in the firm who have the right skillset, qualifications and attitude so you can keep them on your side for any future changes planned. Do not forget that your employees will help you build and grow your business.
Never underestimate the importance of morale to the productivity and profitability of a business.
When employees are aware that their company is being acquired, it is natural for them to be concerned as they will not know if they will be made redundant or will keep their jobs. If the buyer makes immediate changes to the team and sacks one or two, they run the risk of alienating the rest of the staff, which could then compromise their ability to work effectively and increase the chances of losing more staff members in the future.
If the seller has created a great set of values within the business that the staff support and buy into, they are part of what makes it a success. If a buyer can see these values being demonstrated by their employees, they will know it is embedded into the culture, not just a fancy poster on the wall.
Employee turnover can be costly and time-consuming for any organisation. This has a dramatic impact on a company’s efficiency, effectiveness, morale and perhaps most significantly, profitability. It takes time and effort to locate new talent and train them up, but if you inherit a fully operational workforce, it makes total sense to retain those skills and leverage their experience, rather than making more work for yourself by seeking out a whole new team.
Additionally, buyers will also want to see that the team already in place has the capacity to take on further growth in the business. If they are already at the limit and maxed out, a new owner will have to recruit first before growing the business, and recruitment is a costly process that is followed with training and does not often pay back for months.
For every staff member that a new owner chooses to let go, remember they will be looking for another job and most likely in same sector. With the years of experience they have gained working at your business before your arrival, they will have great insider knowledge of how things work operationally and with clients, irrespective of any changes you intend to introduce. In this sense, laying off all or part of the workforce could effectively be bolstering the competition.
A business takeover is an unsettling and stressful time for employees, and on top of that, there are often legal implications involved. Empathy, transparency, and open channels of communication are crucial so you can gain the trust of your staff. It is your job as a new employer to tackle any concerns head on and keep staff happy to ensure they continue to work at peak performance with minimal disruption to the business and clients. By retaining the workforce, it will immediately give you, the new owner, the expertise you need to run the business and continue to successfully grow the business.
For advice on buying or selling a business, please get in touch with your local office.
***When we published this article just a short number of days ago, the Omicron variant was not being spoken about and the business landscape was looking more positive in the lead up to Christmas. However, the content of this article is still valid and informative, even if the timing of the recovery is delayed. ***
There is no doubt that virtually every industry has experienced significant changes and shifts throughout the COVID-19 pandemic. Whilst the economy is steadily recovering from its impact, it could seem like a risky time to buy a business. However, some industries, such as engineering, manufacturing and ecommerce, have seen a rise in demand during the pandemic, providing future opportunities for entrepreneurs.
Buying an existing business, however, can give you the same independence as starting a business, but it will also come with significant benefits. If you choose the right business, it will come with an existing customer base, a strong brand, and a steady or growing income, as well as a goodwill attached to the company. This is especially important in the current climate as you will have an insight as to how the business adapted during the pandemic and whether it has financial resilience to withstand the post-COVID landscape.
Forecasts are more predictable when the business has been running for a while. You will have a better idea of your future income and cash flow, which can make planning and applying for financing a lot easier. You will be able to build on what the previous owner did. Although you can rebrand and change the business, you will need to consider if this will alienate existing customers or be damaging to the brand you have bought.
It is extremely important that any prospective buyer does proper due diligence before buying any business. This process should be initiated at the earliest opportunity after your offer has been accepted and before exchange of contracts or completion of a purchase. It will also establish the business’ assets and liabilities and evaluate its commercial potential, as well as enable you to assess both the current and future impact of the pandemic on the business.
There are some areas, however, that will require greater attention in the current climate. These include:
Review the steps the seller has taken to release its duty to protect the health and safety of its workforce in relationship to the pandemic.
Assess whether suppliers in the supply chain can still reach their agreements and be mindful how the seller has adapted to any supply chain disruption.
Obtain details of the seller’s participation in any financial schemes or other government measures to assist businesses during the pandemic and the circumstances in which the relevant support is (or may become) repayable.
Reflect on the extent to which the seller is covered for losses arising from a business slowdown or stoppage due to the COVID-19 outbreak and any similar events that may occur in the future.
Evaluate whether the seller can still complete its material contracts and what the possible consequences of non-performance are.
The COVID-19 pandemic has been a huge challenge for many sectors and the continuing uncertainty could be particularly damaging for new businesses. Investing in an existing business that has a stable income could be a better opinion at this time, but you need to ensure that any major impact is reflected in the business’ valuation and/or is echoed in the warranties and indemnities in the purchase agreement. This will essentially give the buyer a right to claim a portion of the purchase price back if any of the foreseen problems arise.
Deciding what business to buy will depend on your hopes for the business, whether there are any suitable businesses for sale, and which option appeals more for you. If you want to run a business without struggling through the difficult start-up years, it’s best to buy an existing business.
Something which buyers often overlook is whether they should get the business valued by an independent broker, and the answer is always a big YES! Take advantage of all advice (you may have to pay but it can be money well spent) that is available… always buy with the head and not with the heart!
For advice on buying or selling a business, please get in touch with your local partner.
While there may be many reasons why a buyer wants a particular firm – its location, expertise in a specific area or a lucrative client book – the prospective buyer must do proper due diligence. This process is the most important part of your search and should be initiated at the earliest opportunity and before exchange of contracts or completion of a purchase.
Due diligence is effectively an audit of a firm’s affairs to establish its assets and liabilities and evaluate its commercial potential. It is a vital step when buying a business and will give a thorough review of financial records, legal issues, and the market positioning. It will also look at historical records and future projections, as well as any possible risks that may exist.
The due diligence process allows a buyer to better understand the business they’re buying into and learn whether the price they have offered is a fair price. If the due diligence process is carried out early on then, it allows you to deal with any issues upfront or hidden liabilities which may have not been disclosed. This information can then be used as a strong bargaining tool to negotiate terms, including deferred payments.
Alternatively, the buyer may be able to seek warranties and indemnities from the seller, which essentially gives the buyer a right to claim a portion of the purchase price back if any of the foreseen problems arise.
There are traditionally three types of due diligence you should do and you might need different advisors for each depending on the type of business you are buying.
legal due diligence – as part of a sales and purchase contract, the lawyers can check that the business has legal title to sell, ownership of all the assets and that regulatory and litigation issues are fully addressed.
financial due diligence – checking the numbers and making sure there are no black holes or hidden financial issues.
commercial due diligence – finding out the business’ place in the marketplace, checking competitors and the regulatory environment.
Below is a checklist of what a buyer needs to cover as part of their due diligence process:
Take some time to reflect on what your due diligence has revealed before making your final decision and it will also show you are serious about investing in the firm. Do not, however, try to get stuck in ‘analysis paralysis’ where people find themselves in a perpetual cycle of due diligence, afraid to make a decision.
Some prospective buyers fail to do careful due diligence and end up regretting it later, often having to face unexpected financial shortfalls. Due diligence is paramount as it can uncover risks, anomalies or unforeseen liabilities that could undermine negotiations and ensure you don’t get stuck with a business that has no future. And no one wants to make that mistake.
If you’re looking to buy a business and looking for advice on due diligence, please get in touch(Opens new window) with your local office on 01606 535 024 or enquiry@business-partnership.com
Buying a business is a huge decision which requires careful thought. If you are considering a business purchase, you need to start by getting yourself in the right mindset. Before you make contact with any business for sale, get clear on your priorities, requirements and the outcomes you want from your purchase. This will put you in a strong, confident negotiating position. Reflection takes time, and you will reap the benefits of this later in the buying process.
This blog focuses on open market sales over management buyouts, mergers or acquisitions. If you decide to partner with a business broker to help you find the right business, these are the questions they will ask you. Let’s start with some individual reflection…
Why do you want to buy a business? Consider your reasons for entering into a business purchase. There are all kinds of valid reasons why you might find buying a business attractive, including:
Whatever your personal motivations, being clear and honest about your why will help you find the right business to buy.
Will you stick with a sector you have experience in or are you ready to apply your skills to a brand new challenge? Sometimes a buyer is looking for a business operating in the same sector to complement and grow an existing portfolio, e.g. a manufacturing company purchasing a key supplier of materials. Other times buyers have a desire to enter a new sector they have an ambition to operate in.
There are businesses for sale right now across the UK. Location could be a significant factor if you want to tap into the market in a specific area. It may not be a consideration if you plan to relocate the business in the future.
Your intended level of involvement in operations may also be a factor. If you want to be part of day-to-day affairs the company may need to be local. A more hands-off approach would allow the business to run with low level input, broadening your search area. Alternatively, maybe a business trading outside the UK is more of a priority than where the business is based.
People interpret business size in many ways – turnover, customer base, number of employees, stock holding, assets, etc. Your personal interpretation will depend on your objectives and priorities. Get clear on what size of business you are searching for to refine your search criteria.
Funding your purchase
Will you be a cash buyer or do you intend to fund the whole or part of the purchase through loans or other funding? Having your finance in place at an early stage shows a vendor you’re in a serious position to buy and may help to speed up the buying process. The funds you have available will determine the asking price of the businesses you can approach.
What kind of deal structure are you interested to pursue? Will you initiate a straightforward share purchase? If funds are limited, deferred payments could be your best option. Thinking about your preferred deal structure in advance will put you on the front foot when negotiations begin.
Unsure what deal structure options are available to you? Get in touch with your local business broker for a confidential, no-obligation conversation.
Future objectives are a key consideration in matching buyers with businesses for sale. Like buyer intentions, vendor intentions vary too. Aligning both sets of expectations is important in building trust and rapport between parties. If post-sale you plan to break up or sell off parts of the business and the vendor wants to prevent this happening, then theirs may not be the right business purchase for you.
Questions to ask yourself include:
Starting your search is exciting and also a little overwhelming. At the time of writing we have just shy of 200 businesses listed for sale on the Business Partnership website. If you have a target business in mind this can streamline the process, especially if you know the owner is warm to a potential sale. Where you are going in cold, we’d advise making a formal approach through a professional, such as a business broker or accountant.
Deciding to buy a business is exciting yet daunting. As you prepare yourself to become a business owner, there are several important questions to ask yourself. It can help to discuss your thoughts and ideas with a professional who has experience of brokering business sales.
Business Partnership has been helping people to buy and sell businesses across the UK for over 40 years. We match buyers with sellers and help our clients handle every aspect of their sale or purchase. Find your local expert here.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.