Determining the right valuation method for your business

When it comes to selling your business, one of the most critical steps is determining its valuation. This figure will guide your sale price and is essential to ensuring a successful transaction. Setting the correct valuation is crucial; undervaluing your business could result in a sale price that doesn't reflect its true worth, while overvaluing it might deter potential buyers, causing the sale to falter.

The importance of a... Continue Reading

Conducting sell-side due diligence

When considering due diligence, the focus is often on the buyer's process in an M&A transaction. They thoroughly investigate the business they are about to invest in, ensuring there are no hidden pitfalls. However, due diligence is also important from the seller's perspective. This process not only facilitates a successful sale but also helps ensure the business continues to thrive post-transaction.

Here are key aspects to ... Continue Reading

Exit strategies: Knowing when the time is right to sell

As we’ve emphasised previously, business owners should have an exit strategy in place from the very start of their venture, whether they’ve started a new business or acquired an existing one.

A lack of preparation can be absolutely fatal to business owners’ hopes of a successful sale and can lead to a rushed process that ultimately results in a sale to the wrong buyer at the wrong price.

Having an exit plan in ... Continue Reading

Alternative funding methods for M&A

Acquisitions are fundamentally the quickest, and perhaps most reliable, method for businesses to secure growth. Rather than organically building and diversifying, something that involves a huge amount of time and a significant learning curve, acquisitions enable businesses to rapidly expand into new areas and tap into existing expertise and resources.

The ability to make such deals could have a major impact on whether a business can... Continue Reading

Key considerations when acquiring a company in administration

Purchasing a company that has entered administration might appear to be an attractive opportunity due to the lowered price, active pursuit of a sale, and the retention of liabilities with the seller. However, there are several critical factors to evaluate before making such a decision.

In the current economic climate, cash-rich entrepreneurs may find this a unique opportunity to acquire companies in administration, benefiting from r... Continue Reading

How can SMEs avoid the issue of late invoice payments?

Delayed invoice payments are one of the biggest challenges facing UK SMEs. At a time when many small businesses are already suffering from a lack of working capital, not being paid in a timely manner for work that has already been done can have a catastrophic impact on a company’s financial position, potentially even putting it at risk of insolvency.

While there is no all-encompassing solution to the issue of late invoice payment... Continue Reading

Simple steps to improve ESG credentials and attract funding

Environmental sustainability is increasingly crucial to consumers today, making it vital for businesses to showcase their commitment to green practices to attract and retain environmentally-conscious customers. This shift in consumer values is mirrored in the business-to-business realm, where demonstrating sustainability is equally important to maintain relationships with clients and partners.

Perhaps more importantly, though, busin... Continue Reading

Exit strategies: Selecting an internal successor

In order to avoid a drawn out sale process and to preserve the workforce and ethos of their business, many retiring business owners opt to look internally when seeking to find a successor, aiming for a smoother transition that disrupts the business as little as possible.

Choosing an internal successor often means the compensation arrangement will stretch over a few years, tied to the company's future performance. This approach ... Continue Reading

Restarting a stalled sale process

Exiting a business is rarely straightforward, and becomes particularly challenging when the sale process stalls indefinitely. This situation can lead to a sense of despair, potentially deterring ongoing efforts to find a suitable buyer.

Nonetheless, it's crucial to remain optimistic and persistent. A lack of immediate interest doesn't automatically render your business unmarketable or undesirable.

Reevaluating ... Continue Reading

Spring Budget 2024: The key takeaways for SMEs

With this week’s Spring Budget likely to be the incumbent Conservative government’s final major fiscal intervention before the next general election, UK SME owners will have been keenly watching for any measures that will impact them.

While it may ultimately have stopped short of any major new policies or changes, Chancellor Jeremy Hunt’s budget did bring with it several announcements that will be pertinent to small business ... Continue Reading

Why entrepreneurs should consider buying an existing business

Growth opportunities for small businesses are tightly limited in the current economic climate, with organic growth particularly difficult amid high inflation and low consumer confidence. One of the few reliable routes to growth that companies and entrepreneurs can still turn to is M&A and, with distress high and many businesses struggling to access growth funding, there are no shortage of acquisition opportunities available to those with the mean... Continue Reading

Warning signs to look for during an acquisition

With the UK remaining in an ongoing state of economic turmoil, small businesses may find it hard to deliver on their growth potential through organic means. With budgets likely to be tight, acquisitions may not be the most obvious choice for small and medium-sized firms seeking to grow, but, providing companies have a coherent acquisitive growth strategy and can access the requisite financing, M&A can be one of the most reliable means of attainin... Continue Reading

Utilising software for accounting and financial management

As businesses expand, the tasks of accounting and financial management become increasingly intricate and time-consuming. In such scenarios, small business owners often harbor concerns about the potential for costly errors with far-reaching consequences.

To streamline accounting processes in alignment with growth, many business owners turn to accounting software. These software solutions offer scalable, personalised options that enhan... Continue Reading

Digital transformation for small businesses

The business landscape is rapidly undergoing digitisation with the continuous evolution of new technologies. Consequently, digital transformation is fuelling substantial and swift growth for numerous companies across various industries and diverse processes.

While the term "digital transformation" might evoke images of large corporations, towering office buildings, and teams of IT professionals tirelessly working on digital strategi... Continue Reading

Strategies for retailers to beat the cost-of-living crisis

Retailers are facing severe challenges in the current climate. The cost-of-living crisis has led to the vast majority of consumers cutting back on their discretionary spending, particularly for the kind of impulse and luxury items that many smaller retailers specialise in.

At the same time, with budgets so tight and concerns such as sustainability more prominent than ever, consumers have increasingly high expectations of the busine... Continue Reading