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buying a business

buying a business

It’s essential not to under-estimate the time and resources you need to devote to buying a business. If it’s your first step in business on your own, you’re likely to be working full time. Alternatively, you may be running a successful business already and facing the everyday demands and challenges that brings.

If you follow our step-by-step guidelines you’ll dramatically improve your chances of success.

project planning

It may be a big project so:

  • who’s going to take responsibility for it and where’s the time going to come from?
  • does the acquisition fit with your business plan and is it going to add shareholder value?
  • how are you going to find and approach targets? Have you appointed the right advisers to look after you?

evaluation

Once you’ve found a target, you need to consider what it’s worth to you. Are you prepared to pay a premium to have this business and control it?

Our experts will value the business for you to give you sensible guidelines to use in the negotiations.

During the evaluation stage you need to ask yourself:

  • are the synergies/savings really there?
  • will the new sales opportunities actually materialise?
  • can you see yourself working there after completion?
  • have you uncovered any cultural issues?

Tax planning plays a very important part at the outset, as does the timing of the deal. Our tax experts have a wealth of experience, and will advise you on the best structure for you.

raising finance

We’ll identify how best to finance this business acquisition, as it can be done in a number of ways.

It’s important not to put too much pressure on your on-going business operations. The deal needs to be affordable to you and over a term which is comfortable.

Our Staffordshire based team will prepare forecasts and a well-reasoned business plan for you, and were also more than happy to attend meetings with banks and other finance providers with you, in order to explain and interpret the figures.

due diligence

If you’re happy with the initial evaluation and you can finance the deal, the next step is due diligence. This is your one and only opportunity to explore in depth the risks, pitfalls, opportunities, etc of buying the business.

We perform the most effective financial due diligence exercise for you, by concentrating on the high risk and critical areas.

integration

Do please give this plenty of thought throughout the transaction. You’ll need to consider:

  • how will you integrate the business after completion?
  • what changes do you need to make and how will they be communicated?
  • who’s managing the integration?
  • how are you going to measure success?

We can help you project manage the integration, introduce management reports and attend regular board meetings with you.

Want to know how we can help make your transaction a success? Contact us today to confidentially discuss your business acquisition or email our expert directors at confidential@mittenclarke.co.uk!