It is important, long before the 'sale' decision is made, that the business is prepared and ready to be presented in its best light. Optimum working capital management, regular and appropriate management information, a strong management team and succession plan, a clear growth plan and a focus on driving value all need to be considered well in advance of selling your business. We can support you with all aspects of preparing the business for sale, and the earlier we can help the better.
A successful business sale is almost always dependent on the strength of the team running the business. Appropriate incentivisation schemes can help a management team drive value and stay focused on a long term goal for them and the shareholders. It is important to ensure the capital structure of the business is optimised to allow shareholders to benefit from Entrepreneur’s Relief and other attractive tax reliefs available on the sale of your business.
We specialise in advising owner managers on succession and the sale of their business. No two deals are the same and we have vast experience in securing the best deals for our clients.
Preparation is key. It is important the companies housekeeping, key contracts and legal documentation are up to date and in order. The better prepared the business the quicker the deal process, and the more likely it is value will be retained.
Our client is an owner-managed family business in the engineering trade and have been in business for 50 years.
Already a second generation business, the father was now ready to take a step back and hand over the controlling interest in the business to his son. The business had previously rewarded key employees with an equity stake in the business and wanted to continue to do so.
We worked with the client to structure a management buy-out plan (MBO) that enabled the father to extract the value of his shareholding (circa £1.5 million) from the business without the business requiring third party finance.
We obtained clearance from HMRC, worked with the client and the legal team to ensure the documentation was correct and ensured the client maximised his Entrepreneurs’ Relief position in light of changing legislation.
We also advised father on his changed Inheritance Tax position, worked with him and his lawyer to make some lifetime gifts and to redraft his will.
The MBO meant that father was able to extract a large cash lump sum on completion with deferred payments over 7 years. The son was able to take the reins of the business with a 75% shareholding. The existing employee shareholders retained their stake in the business with an incentive to acquire more shares under an EMI scheme in the future.
The client is a manufacturer of agricultural spray and weed control equipment selling into a global market. Family owned business established almost 65 years ago, based in Herefordshire.
Client was acquired by Goizper S Coop, a Spanish based spraying and biotechnology co-operative.The client required assistance in all aspects of the sale process.
We provided the exiting shareholders with advice and assistance regarding initial negotiations, the sale documentation, the ongoing negotiations with the buyer, the due diligence process and the interaction with the legal teams.
Ultimately, the client was able to maintain the growth and development of the business during the M&A process. There is not likely to be any significant change going forward in terms of Micron’s UK based organisation or identity and importantly, the buyer will continue with its programme of investment in its newly acquired subsidiary.
The client required support in finding, structuring, negotiating and delivering the best deal for the shareholders.
We worked with the business for two years prior to the decision to sell, acting as a sounding board and adviser in respect of the future plans, succession and exit strategy. When the time came we prepared the business for sale and marketed it to a wide range of potential buyers, securing nine offers for the business from buyers in the UK and overseas in the process.
We led the negotiations for the shareholders, driving the deal value up, and supported them in the selection of a preferred buyer. We project managed the entire deal process from start through to completion, managing the DD process and co-ordinating the work flows of all other advisers involved. Negotiating several key hurdles along the way we eventually delivered a deal at market topping valuation multiples for our client.
We secured a deal for the client which involved the shareholders receiving all of the consideration for the deal on the day of completion. Our client was able to hand the business to new owners, under the stewardship of his management team, and retire in the knowledge his family business would continue to go from strength to strength.
“Anyone looking for a corporate finance advisor to deliver what, for me, was the most important deal of my life, would struggle to find anyone more capable than Matteo and his team.
Crowe’s professionalism and marketing approach delivered what I considered to be an exceptional number of high quality offers from UK and overseas buyers. Crowe superbly managed negotiations and the entire deal process through to final offers and ultimately completion.
Without doubt this transaction has been one of the most stressful, emotional, and tiring events I have ever experienced. However, the constant support and obsessive vigilance from Matteo and James and their interaction with my team and the legal advisers, ensured a complex sale resulted in a positive outcome for all concerned.”