Maximising opportunities, mitigating risks

By John Jones, partner and head of corporate finance, Beever and Struthers

Getting the right advice at the right time is critical and can make the difference between success and failure.

Buying a business

There’s no doubt that buying an existing company has many advantages in helping you to grow your business faster because you can buy your way into new markets, new products and secure access to new and skilled employees.

There can however, be drawbacks for the unwary. A vendor may have many reasons for wanting to sell a profitable, well-run business, so the act of selling does not automatically mean there’s a problem, but time and effort is required to ensure you find the right business and to undertake thorough due diligence before buying.

The potential costs involved can also be substantial and should never be underestimated, not only in terms of the acquisition price and advisory fees but also because an acquisition is a potentially significant distraction from running your own business.

Selling your business

Selling your business is not only a major financial decision but also a major life decision. Proactive owners should always take steps to ensure their business is best placed for whatever the future brings - the only certainty being that at some stage the owner will need to exit the business. The process of selling your business can equally be complex and time-consuming.  Whilst most entrepreneurs know their business inside out and are acutely aware of the market in which they operate, specialist skills and experience are required to optimise their return by maximising sale proceeds, minimising tax liabilities and completing the deal efficiently.