At McAvoy & Associates we understand that the sale of your business is a time-consuming and emotional process. Many owners will only have one opportunity to sell their business so good planning and careful timing is essential if an optimal sale is to be achieved.
Our experienced business advisory team will help guide clients through the sales process, always with one eye on how to maximise the value of the business.
Typical problems that we come across
Businesses that are sold for the wrong reason – if there isn’t a plausible reason for a sale a purchaser will be suspicious and may assume there is something wrong with the business that hasn’t been disclosed. Often this results in lower and fewer offers than would otherwise have been the case.
Incorrect timing of the business sale – selling a business when the sector is in decline or when it is forced will reduce the chance of achieving high interest and offers.
Failure to budget for the huge distraction that a sale will involve – don’t underestimate the energy needed to secure a successful sale. Selling a business requires a significant commitment of the owner’s time and resources, As a result, the sales process will represent a huge distraction from the operation of the business. Unless the correct level of resources are put in place to manage the business, the sale could have a detrimental effect on business profitability and in turn on the value of the business.
Surprises that arise during the purchaser’s due diligence process – there is nothing that causes more problems in the sale process than unexpected surprises discovered late in the day. These can scupper a deal or result in a price reduction. They often spring from issues with leases, contracts, employee entitlements, documents, title deeds, etc.
Lack of tax planning – concentrating on the sale price without understanding what will remain after taxes are paid is never a good idea. Unless the focus is on the amount retained after-tax, the business owner is negotiating in the dark.
How we can help
We advise on all aspects of the sale process to bring about a successful outcome, including:
- Evaluating the opportunity from a financial, tax and commercial perspective
- Assisting with the preparation of sales documentation and the Information Memorandum
- Assisting with the identification and evaluation of potential purchasers
- Assisting with the evaluation of offers to preferred bidder stage
- Acting as an intermediary between the vendor and purchaser and assisting with negotiating the Heads of Terms.
- Managing the due diligence process
In short, we can offer to project-manage the sale process from commencement to successful completion