Buying a Small Business in the UK - A Quick Reference Guide

Education and Qualification - Experience and education are very important, the M&A process is very complex. It takes on average 4 months to buy a business once the Seller is engaged and there are many accounting, legal and functional challenges along the way. Due to this, the advisor must be very knowledgeable to be able to guide the Buyer during the process. Ideally, the advisor will have the appropriate professional qualifications. But at the very least, they should have several years of experience and many transactions under their belt. Reputable Firm With a Significant Track Record - Like with everything in the business world, a successful firm will have developed policies and practices over time to optimise the service they offer. Business sales is a team sport with many different players, so a larger firm will have a deep bench, so to speak. They will also have a management hierarchy the Buyer can access should issues arise. Dedicated Advisor - Although the Buyer will want to work with an organisation as above, it is important that there is one point person that they trust that is the main point of contact. A business sale process is very involved and can take several months, so continuity is important.

What Role Does the M&A Advisor Play?

Negotiating Commercial Terms - We have discovered that the quickest way for people not to like each other is to talk about money and particularly the value of their business. Due to this, it is much more efficient for commercial discussions to be done through the advisor. These kinds of transactions are very complex and this allows the advisor time to work with the Buyer and Seller on the offers, then taking time to explain thoroughly the offers to the Seller and then

115

Made with FlippingBook - professional solution for displaying marketing and sales documents online