Sell your business
We are with you every step of the way
For most entrepreneurs, their business is their most valuable asset. Our aim is for them to realise the true value of their asset in the market. Irrespective of the company’s size, sector dedicated advice can be the difference between deal success or failure. Connect Corporate Finance’s track record of selling businesses to all buyer types, including trade buyers and private equity buyers is invaluable.
Working from inception to completion, our assistance remains throughout the business sale process. It could be that the decision to sell is something you have contemplated for a while, for others it’s in response to a direct approach from a competitor. We are well versed in all types of sale scenario within the Business Services sector, assisting companies with Enterprise Value of £1m to £50m.
Valuation & Market analysis
Initial market research
We manage client expectation by strategising early on and discussing what we feel is a realistic market valuation, based upon a company’s historical & future financial performance trends.
It is vital in any business sale, to present your client with professional and factual data, so they understand acquisitive buyer information, comparable industry deal trends and valuation methodology.
One of Connect CF's strongest attributes is our market mapping and research capabilities, our team identify buyers that have the financial capabilities, but more importantly - strategic rational, to pursue and close a deal of our client's business, whilst offering a competitive price. We have direct access to over 10,000 trade acquirers, this enables our clients to benefit from both domestic and international competition, yielding a more robust shortlist of interested buyers.
The CCF Route to Market
Preparation for buyers
In order to obtain the best price and deal structure, we create professional documentation highlighting the benefits of the acquisition.
A sale memorandum showcases a company’s operational and financial history and how the business has evolved into the asset it is today. Documenting the key value propositions is vitally important, for attracting prospective acquirers. We obtain from the shareholders, the strengths & weaknesses of the business, because it’s important to show what the future growth potential of the asset is and highlight synergy potential.
Outreach & Meetings
Approach to market
Our clients benefit from our in-house database network, which is constantly evolving, alongside intelligence streams from leading providers such as Mergermarket. These research pools enable us to construct acquirer lists, that consist solely of C-level decision makers from an array of sub-sectors and vertical niches, which can often unearth, unobvious - but viable prospects. Leveraging our industry relationships, we are able to solicit competitors or other industry providers which could benefit from synergies created through an amalgamation of businesses in a confidential manor.
It is important to note, we do not approach any buyer without the prior consent of our client, we strictly uphold confidentiality, therefore everything we design and plan to release during the outreach stage, is reviewed and signed off by our clients beforehand.
In order to achieve competitive tension in the deal process, we aim to attract between 2-5 seriously interested parties to the negotiation table. Whilst this takes time, we set clear timescales, so every party declares interest in an efficient timeframe.
Due Diligence & Completion
As with most transactions, the latter stages are the point in which every detail comes under scrutiny.
Due diligence can become arduous for vendors, the collation of information is time consuming but forms an essential part of the sale process. We work with our clients to ensure some of the burden is lifted during this time. With access to the data rooms and DD checklists, we converse with lawyers, accountants and tax advisors to ensure the information requests are understood and tasks are completed in a timely manner by all parties involved.
This collaboration leads to a successful sale and purchase agreement being finalised within the time frames set out in the Heads of Terms.
Identifying the most suited buyer within your shortlist is essential. We lead the vetting process, collaborating with our clients to ensure they choose the right partner. Throughout the discussions, we determine whether the buyer’s culture is compatible with our client’s organisation, this is vital for the ongoing success of the vendors business - and can be just as important as the facility in place to fund the acquisition.
Once we have identified and committed to a buyer, the deal leader will liaise with and head up the negotiation throughout the deal process. Our clients are consulted during weekly calls, where we relay necessary information, so they can make appropriate decisions on progressing the deal. We aim to alleviate the sensitive issues that can arise during the negotiation stages, by offering practical guidance and experience of how to address concerns of the buyer and seller.
Our clients are removed from the face to face negotiations, which can sometimes compromise their leverage and ability to secure favourable terms. It also ensures their concentration doesn’t waiver from the running of their own businesses.
Who could buy your Company?
Typically, buyers fall into the following four categories:
UK Trade buyers – as industry specialists, it’s our job to know the key buyers in the sector
International buyers – we have a broad network of industry contacts globally
Financial buyers – we hold relationships with private equity and debt providers
Employee Ownership Trust - for owners seeking to exit this can be an attractive option.