Starting a business with an exit strategy in mind

It might sound odd, but one of the best decisions you can make when starting a new business is to begin thinking about when you might exit the company, what form this exit might take and what you plan to do once you’ve completed your exit.

While this isn’t to say that you shouldn’t plan to be at the business for the long term, incorporating a potential exit strategy into your business plan can deliver numerous benefits – bo... Continue Reading

Using M&A to diversify your business

With the UK on the brink of recession, many SME owners will be understandably worried about what the future may bring. The temptation at times like these may be to pause any ambitious growth plans and instead focus on just making it through to the other side of the downturn.

However, the best way to survive a crisis is in fact to focus on ways of attaining growth, which will not only improve a business’ chances of outperforming c... Continue Reading

SME acquisitions: Three sectors to consider

The start of 2023 is an interesting time in the UK M&A market. Widespread financial distress means there is set to be a plethora of opportunities over the next few months. However, the economic downturn that has fed into this financial distress also means that potential buyers may find it difficult to fund acquisitions, or may be hesitant about targeting deals even if they have the cash.

However, history has repeatedly shown two thi... Continue Reading

Turning a newly acquired business around

Business distress is currently at an extremely high level in the UK, as companies face up to issues including rising costs and plummeting consumer sentiment. While this is of course massively concerning for business owners, it also presents undeniable opportunities for buyers looking to acquire distressed companies.

Despite the difficult economic climate, acquiring a distressed business can be a real coup, providing the right turna... Continue Reading

Assessing the growth prospects of a potential acquisition

When you’re planning an acquisition, there are likely to be multiple reasons. Maybe you want to expand geographically, diversify your product range or services, boost your profits or expand your market share within your existing sector.

What all of these things have in common, however, is that they are all centred around one thing: growth. Of course, any new acquisition will need to be compatible with your existing business, but ... Continue Reading

Red flags when buying a business

Before buying a business, there are a huge array of factors to be considered and assessed. Does the company fit with your portfolio and strategy? What kind of reputation does it have? Will it boost your revenue once it has been integrated?

These are all among the things you’ll need to consider, but you should also be on the lookout for red flags which could suggest deeper seated issues that might not be immediately apparent. Here ... Continue Reading

Boosting a company’s social media presence

Social media has become an integral part of everyday life and, by extension, is crucial for how businesses market themselves and build their brand image. For small companies, in particular, a social media presence is vital to ensure they stand out from the crowd and make people aware of their products and services.

By now, the vast majority of businesses have at least some kind of social media presence. However, without a clear soc... Continue Reading

Buying a business: Questions to ask the owner

When buying a business, asking the right questions during the early stages of negotiations can be key to not only starting a successful acquisition process but also to gaining the relevant knowledge to ensure things go smoothly if and when you take over the business.

If you have an accountant or financial adviser involved in the deal, then they will likely ask many of the legal and financial questions during the due diligence stage... Continue Reading

What does the mini-budget mean for small businesses?

In our last piece, we discussed how small businesses could adjust to the prospect of soaring energy bills over the autumn and winter. Despite the chaos that has consumed Liz Truss’ short tenure as Prime Minister, small business owners will have been encouraged by the introduction of a temporary energy price cap for businesses.

Aside from the price cap, the most significant development so far under the new government has been the ... Continue Reading

Tips for surviving rising energy bills as a small business

Energy bills are skyrocketing across the UK and, with businesses unprotected by a price cap, the significant increases expected when tariffs are renewed in October look set to plunge many businesses into serious financial distress. Consumer sentiment is also likely to continue on a downward trend as the cost of living crisis bites, meaning that UK small businesses are facing the prospect of an extremely difficult autumn and winter.

... Continue Reading

Making contact with a potential acquisition target

When looking for a business to buy, you’ll likely compile a shortlist of potential targets before you begin the process in earnest. Once you have these targets, the next step will be to make contact with the owners to sound out the possibility of a sale.

This is a potentially hazardous first step, as going about it in the wrong way can mean the process ends before it even starts. Here are some possible methods of contacting a pot... Continue Reading

Why buy an existing business?

While it’s true that taking the entrepreneurial route and starting your own business can be hugely rewarding, there can also be a great deal of satisfaction in acquiring an existing business and helping it achieve even greater success than it may have done in the past.

Whether to start a business from scratch or acquire an existing one will often depend on the kind of business you’re looking to own. It might be that you’ve ide... Continue Reading

Preparing your business for inflation

It’s little secret by now that inflation is rising sharply and everyone is feeling the pinch. While there were of course warning signs pointing towards this, the rate at which inflation has soared over recent months will have doubtless left many people and business owners unprepared.

Small and medium-sized businesses in the UK are some of the worst affected by rising inflation, with a new survey from Fiverr revealing that UK SMEs... Continue Reading

Exiting your business at the right time

One of the key elements of a good exit strategy is knowing, or at least having a decent idea of, the circumstances in which you would ideally like to exit. We’re not talking about an unfortunate scenario in which your business is struggling and you’re forced to find a buyer or enter insolvency or liquidation.

Here, we'll examine some situations in which you'd be leaving for the right reasons, with the decision being en... Continue Reading

Conducting due diligence on distressed acquisitions

With inflation soaring and the rising cost-of-living contracting household spending, small business owners looking to move into growth mode during 2022 may struggle to do so organically. This is where distressed acquisitions can be so valuable, offering an ideal route to inorganic growth... providing you can identify the right opportunities.

Business distress is currently rife in the UK, driven by a multitude of factors including i... Continue Reading