Frequently Asked Questions
Please read our frequently asked questions to find out more about our services.
Q. How long does it typically take to sell a business?
A. Every deal is different and many things can influence the timescales. Typical Share Purchases can take 3-5 months but it isn’t unheard of for some distressed company deals to go through in a couple of weeks.
Q. Why should I sell direct rather than going to a broker?
A. There are plenty of good business brokers in the UK who give a good service but obviously they charge a commission for you using their service which you will have to pay. You may get wider coverage with them and may even achieve a higher sale price by using a broker but you should be aware that not all business’s sell that are placed with brokers.
Q. My business is only 3 years old – would you still consider buying it?
A. No we will only purchase businesses with at least a 5 year trading history during Phase One of our investment strategy.
Q. I don’t want to sell my business but I need investment capital to grow my business. Is this something you would be interested in?
A. Not in our current investment phase, but it is definitely something we will be doing in future investment phases.
Q. What information will you need from me?
A. Initially we will need some financial information like bank statements, management accounts and tax returns, but we will cover this in detail at one of our initial meetings.
Q. How do you go about valuing my business?
A. There are several different ways to value a business but typically they are either valued using and industry multiplier x net profit, typically 2 – 5 x which is then adjusted up or down depending on specific circumstances. Another common way is to value the business’s assets.
Q. Can we have a confidential discussion without my staff or customers finding out?
A. All discussions we have are totally confidential. We will sign a mutual non-disclosure agreement NDA early on in the process which is legally binding. We are extremely cautious in any interactions we have with you and your business.
Q. What happens if we can’t come to an agreement?
A. Understandably there will be times when one or other party can’t agree to a proposal but we believe we should always part as friends and leave the door open for future discussions if, as they often do, circumstances change.
Q. How do I know that you will give me a fair price for my business and won’t try to cheat me?
A. Whilst we always aim to acquire a company for no more than its market value, we always try and agree a fair value and deal that means that all parties win and nobody loses.
Q. Do we need to wait for the COVID-19 pandemic to be over before contacting you?
A. In simple terms no! The first part of the process is always done on the phone to make sure we quickly find out if it is, or isn’t for us. Normally this would be followed up by a small number of face-to-face meetings. In order to minimise risk these meetings are being done by video conference on Zoom or Skype. If we agree to proceed further then at some point there may be a need for some face-to-face meetings but these will be delayed until it is safe and restrictions are lifted.