Sell-Side Advisory Services

To understand the business valuation and the different exit strategies available. Seek professional advice from a corporate finance adviser who will guide you.

It can vary greatly, but usually between six to 12 months, depending on the complexity, industry, and economic environment.

Mercer & Hole’s buyer research team use a combination of deal databases, trade lists, online research, competitor benchmarking, and insights into private equity portfolios to identify suitable buyers.

Most standard trading businesses are valued based on a multiple of their maintainable profits. The multiple varies dependant on the industry, business size, growth prospects, strategic fit for the buyer, and risk.

Each case varies depending on how critical the selling shareholder is to the business’s daily operation. In any event, there is often a period of tie in to assist with a smooth transition to the new owners.

This can vary and should be considered at the outset. A sale to the employees under an Employee Ownership Trust is currently tax free, whereas Business Asset Disposal Relief, and Capital Gains Tax typically apply to Management buyouts or trade sales. Mercer & Hole can advise on the most tax-efficient structure when it comes to selling a business.

Yes, partial sales of equity are common, often where an owner doesn’t want to exit the business immediately but wants to de-risk and realise some of the capital value.

Financial due diligence is a buyer’s review of the financial and legal elements of your business before the legal documents are signed.

To ensure that you are as prepared for due diligence as possible, we suggest that you organise all key documents and records; identify potential issues and high risk areas; and consult legal and financial advisers to ensure you are compliant and ready to address complex questions.

Due diligence can be full-on, so it is important to be aware of what it will entail, and to be as prepared as possible.