Note: These are averages and are meant to give you a flavour of what the average business Buyer experiences. At Transworld M&A we have developed processes and expertise that significantly reduce timescales and increase the likelihood of getting to the closing table with the Buyers and Sellers having a good relationship and cultural fit. This is, in fact, the value add that we offer. Business Sale Process Timescales The 8.2 months previously quoted needs to be taken with a pinch of salt as this will include all businesses in the SME category, many of which could be quite small and the process happens more quickly. For comparison, let’s examine a fish and chip shop on the high street alongside a complex manufacturing company with several sites, maybe some of them not even in the UK. One would think that the fish and chips would sell faster than the complex machine shop. However, there is another factor which is that not all businesses even sell. If a business is not very sellable in the first place (i.e. it may have low profits or no profits) there is a long period during which the owner adjusts to the situation. It takes time to become accustomed to the fact that, if they want to sell their business at all, it will be for a very low price. This all adds elapsed time and influences the statistics, of course. On the other hand, a complex machine shop with excellent books and records (see a later chapter on the importance of this), and great EBITDA, that is priced right with a highly motivated Seller can find a Buyer within 2 weeks of listing. Yes, the due diligence and legal process will always take a few months longer than a fish and chip shop transaction but the deal will be completed in 6 months. The fish and chip business with poor books and records, overpriced with an owner who was not that motivated to sell will still be on the market. We could still be marketing this business
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