Buying & Selling a Business

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It is good to know that whether you are buying or selling, Alliotts can handle the whole deal from start to finish. From finding the right buyer or business, to valuation and due diligence, right through to succession planning – we are here to help you navigate them all.

Buying

Buying a business can be a risky business. Get it right and the likely rewards are increased profits, greater market share, diversification in what you produce or sell, and maybe even a stronger management team. It’s important to choose wisely.

At Alliotts, we understand the potential pitfalls and are here to help you avoid them. Making sure you select discerningy, only buy when the time is right and achieve value for money.

We can help you:

• Identify the right business
• Select from our database of millions of UK businesses
• Provide financial information on international companies
• Help you secure finance

Selling

You may only sell a business once in your lifetime, but it is something we are involved in all the time. So let us help you get the best result. The sooner you start planning, the more time we have to get your business into great shape, maximise its potential, and minimise your tax bill.

We can ensure your:

• Budget and accounts are up-to-date
• Projections and budgets are meaningful
• Business plan sets your company up for success
• Organisational structure is clearly defined
• Employee contracts are compliant and up-to-date
• Key employees are identified, and your company is protected if they leave
• Business has no ‘skeletons in the cupboard’ that could upset the sell

Finding a buyer

Getting the best price for your business is our goal, and we do not sit back and wait. We will actively promote the strength and potential of your offering. Researching the market to seek out potential acquirers likely to pay a premium for what is on the table.

Once a buyer has been found, we go again. Ensuring the sale is smooth and efficient, and that we have ticked all the boxes to maximise your proceeds and minimise your tax liabilities.

Company valuations

When we value a business, there is a lot to consider. We look at its future potential, assets, its risk environment and inherent tax liabilities. It is a process that takes judgement, skill and many years of experience.

There are many reasons you may need a valuation:

• Selling a business
• Purchasing a business
• A merger
• Probate value for a death estate
• Share option valuations
• Capital Gains Tax valuations on sale or gift
• Inheritance Tax valuations
• Divorce settlements
• Partnership break-ups
• Demergers/business splits

Due diligence

For any sale or purchase, due diligence is the cornerstone of success. And we leave no stone unturned. Our services are uniquely tailored to each and every scenario, giving you peace of mind that you are executing the right deal, at the right time, for the right price.

We carry out due diligence for:

• Pre-acquisition financial and pre-lending reviews
• Vendor pre-sale
• Financial reporting on mergers and acquisitions, including discounted cashflows and costs of capital valuation models

Shareholder agreements

When you set up in business, it is a legal requirement to have Articles of Association, setting out the rules for how your company is run. But a shareholder’s agreement goes much further, protecting the needs of your business and its investors. It covers:

• Shareholders’ rights and obligations
• How the sale of shares will be regulated
• The running of the company
• Decision-making process for important matters
• Deadlock resolution procedure

Tech startups

If your business falls into this category, you are likely to be an attractive acquisition target, even before you make any money. If you are tempted to sell out early, a shareholder’s agreement will help safeguard the future of the business, the interests of its shareholders and your initial investment. And if you are faced with any legal wrangles or disagreements, it could be the best money you have ever spent.

Succession planning

From the smallest partnership to the biggest family enterprise, you need to consider who will be your leader of the future. Not everyone will be up to it. Not everyone will want it. You could bring in people from outside – but will that mean a big culture shift?

We understand how much your business means to you – you have put a lot into it. That is why we want to help you plan the best exit strategy, making sure it is left in good hands.

We can help you:

• Develop your team or recruit new talent
• Establish better career paths and employment contracts
• Set up reward structures to keep your best people
• Help your team identify their strengths and weaknesses
• Train the management team to take on your roles
• Help your team secure funding for a management buy out