Buying or Selling a Business

Preparing your business for sale to an MBO team
If you are planning to sell your business, one option might be a management buyout (MBO) if you think the current management team could be interested in buying you out. Planning well ahead will help to ensure that the MBO team is right for the deal, that your business is presented in the best possible shape so that the buyers and their funders can see value and future potential in the proposed acquisition – and that you will receive your just rewards. By getting your business MBO-ready as early as possible, it is more likely that any deal will succeed,…
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Buying a business and contract due diligence
If you have spotted a great business acquisition opportunity and the headline figures look superb, how do you know that you will be getting the value and benefits in the deal that you had hoped for? The key lies in the quality and depth of the due diligence carried out by your advisors, especially in regard to the transferability of the business contracts. It is a sad fact, that some otherwise viable acquisitions have failed to succeed as a result of important contracts not being transferable to the acquiring business. In this article we delve into the various aspects to…
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Your rights of redress when the business you purchased was overvalued
When the New York Times purchased the free to play word game Wordle for a seven figure sum, eyebrows were raised. How could a new game that has never generated an income be worth so much? The New York Times purchased it as a method of potentially boosting subscription numbers which will increase revenue. No one knows if the strategy will pay off but The New York Times were aware of this and prepared to take the risk! There are numerous ways to value a business and so there is plenty of scope for valuations to differ but sometimes the…
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Getting ready to sell your business
Whether or not you are starting to think about retirement, if you have any plans to sell your business in the future then there are steps that you can take to ensure that you achieve the best price for your business and to sell it on the most favourable terms. It is worth investing time and effort to ensure that your business is presented as attractively as possible before you start to market it to potential purchasers
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New National Security and Investment Act will regulate acquisitions across 17 business sectors
New National Security and Investment Act will regulate acquisitions across 17 business sectors including transport, energy and advanced materials
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Buying an asset-based business – what to look out for?
If you are contemplating buying another business, then you will have been suitably impressed with the sale particulars. But these do not tell the whole story and when you decide to acquire the assets of a business you will want to satisfy yourself that you can continue trading and can realise any potential growth plans.
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Winding up and closing down a company cleanly
While many founders and business owners will implement succession plans to sell or pass their business to a new generation of owners, sometimes it is clear that you have reached the end of the road and the best decision is to call it a day and close the company. Having made this tough decision, you will need to plan the best approach to achieve this cleanly and cost-effectively before the final closure can be made official.
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Is an MBO or MBI a good move for your business?
Is your business ripe for more growth? Do you have the team that can take your business to the next level? Or do you want to take a step back and reap some of the rewards of your efforts? If continuity is important to you, then a management buy-out (MBO) or a management buy-in (MBI) might be an appropriate avenue to consider.
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Acquisition opportunities among distressed businesses
As many of the government measures to support businesses through Covid-19 come to an end, businesses which have limped along may need to take more drastic action and consider renegotiation with creditors, restructuring, disposal, or even winding up or administration.
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Should I agree to an earn out when selling my business?
When you come to sell your business there will probably be a difference between the price that you think your business is worth and the amount that a buyer wishes to pay you. A possible middle ground is to negotiate an 'earn out' which is a structure whereby on the sale of a company you receive an initial amount, and then further sums will be paid dependent on the performance of the business following the sale.
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