If you’re asking how would I ….:
Then Alpha-Financials’ in-depth experience of M&A transactions ensures you buy or sell at the best possible price, within an agreed completion timescale
We can assist you at any point in the buy or sale process from strategy, valuation, due diligence, negotiations, finance raising to contractual closure
Are you looking to quickly expand through acquisition and:
* need assistance to identify potential targets > we undertake discreet studies with you
* already have a specific target company in mind or maybe someone approached you who wants an exit of their own business, and is the
> Value unclear thus finance uncertain too
> Value clear, finance unsecured
> Value clear, finance secured
Whichever applies, you’ve come to the right place to seek help and guidance.
The four key stages of successfully selling your business consist of :
* getting the right strategy
Common sense strategy means establishing clear objectives, timescales and a workable plan.
* undertaking sufficient preparation
Creating a plausible Business Plan or Information Memorandum and perhaps launching a profit improvement plan (see Financial Sounding board and Reduce costs options) in addition to an independent business valuation and suitable market research of potential buyers
* effective interaction with the market
This is all about maintaining adequate and effective competition, and securing proper bids whilst protecting the business as an independent going concern.
* completing the transaction.
Getting all the final commercial terms right in the final contracts in order to maximise the proceeds.
There are several business valuation methods, so picking the right one and using it appropriately so as to establish a ‘picture’ of value is crucial. We have done this hundreds of times and it’s a particular area of expertise.
Having established a range of plausible valuations, the next step is to secure the finance:
With a clear value, we now need a financial plan which brings the two separate businesses together and adds in the costs of integrating them together with the possible synergies achievable.
In turn this will indicate the total finance required to achieve the acquisition which will typically comprise some combination of the buyers own resources (cash in the business or new equity) and new funding (some form of debt or third-party equity).
Approaching third parties for funding [link to raising funds] requires both a credible plan [link business planning] and a specialised financial model [link to our model]. Third parties will need reassurance that their returns areplausible and relatively safe so a professional and credible plan is of paramount importance. Alpha-Financials has considerable experience and expertise in this area.
Last but not least and prior to contract signing, the final step is to plan for the integration of the two businesses:
It’s easy to underestimate the effort required to integrate two separate businesses, so advance planning for this process will make a difference. It may require temporarily employing extra resource to ensure that integration doesn’t come at the expense current operations.
In this regard, perhaps you’d benefit from an experienced finance sounding board.
Total value of M&A transactions processed
Largest value transaction
Smallest value transaction
Even the highest bid might be below fair value, but you won’t know if you don’t have an independent business valuation. It could be that you’re selling at the wrong time or that you simply haven’t found the right buyer.
When professionally prepared, an independent business valuation can help you present your case to prospective purchasers in the best possible light, thus securing a higher price than would otherwise be the case.
This is usually a trade-off between getting a good deal whilst making a competitive offer acceptable to the seller. Understanding the value drivers and how the key risks and opportunities affect value will be key to bidding effectively and undertaking sensible negotiations with the seller.
A specific problem, a desire to reduce accounting costs or you just want some general financial advice from qualified experts? Then call us NOW
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We are UK based financial consultants, offering services in Accounting, Valuations, M&A, Project Financing and Investment Appraisals.
We engage across all industries and have a special interest in the environmental world.
If you any questions please get in touch using the contact details below, or using the form and we’ll get in touch with you as soon as possible.
