28 Apr 2021 12:29 PM
Yes, amazing as it seems but we have recently completed a sale of a business 36 days from receiving the formal instruction.
The client sourced product in the Far East, dispatched it to the US and sold it online. The business had been established for 3 years and was run from the UK. It will be appreciated that the timescale for similar deals is around three months and they can often drag on further.
The key features for this deal were-
- We had a meeting on day 1 with the Management Team who were all keen, energetic entrepreneurs owning all the Share Capital – we ran through the process and outlined valuation expectation which everyone signed up to
- By the following day we had produced a Teaser and identified around 12 key prospective buyers. We skipped the production of an Information Memorandum reasoning that the business model was simple and prospective buyers would come from within the Sector and have an understanding of the business. We also identified companies that already had a track record of acquisitions in the Sector
- Within 24 hours we had sent the Teaser out to key decision makers on our list and followed up with calls. We received indications of interest within three days and had favourable outline terms from one of the parties shortly after
- The terms offered were both acceptable and clearly outlined. A verbal undertaking was made that everyone would not move the goal posts unless unexpected facts were discovered.
- We set up a clear communication channel with our clients, the buyers and all the deal advisers. We agreed to wherever possible meet regularly online and not waste time with queries going backwards and forwards on emails.
- There were of course a few wobbles, fortunately not deal breakers, but as and when road bumps were hit we got everyone `round the table` to thrash out the facts and where necessary agree compromise.
- A key feature of the deal was our clients wanted to sell, were satisfied with the deal price and the purchasers had experience in the Sector, saw the upside of adding to their business and kept to the deal price.
No deals come without their stressful moments, but I am pleased to say that due to the timescale and communication transparency these were kept to a minimum, as were the professional costs!
If you have a business you'd like to sell, please do contact us.