Monthly Newsletter – October 2023

?Insights from our interactions this month

After a warm September, the autumnal winds of change are blowing in storms and the ground is saturated. The tree canopies are changing colour as the chlorophyl in the leaves depletes ahead of winter when they will fall to the ground. Trends in the market place don’t follow the seasons, but they can be cyclical and with all the gloom around you might expect that the metaphorical leaves would be falling away from the acquisitions market.Actually, the market place probably resembles spring more that Autumn, ?we have a business that has gone to offer in the last week and another has had over 30 expressions of interest for another. So there appear to be green shoots and reasons to be optimistic?

Tip of the month

Sellers need to prepare for due diligence.

Preparing for due diligence is crucial for a seller when they're looking to sell a business. It involves providing all necessary documentation and information about the business to your preferred buyer. This usually happens after Heads Of Terms are signed. Here are steps a seller might take to prepare for due diligence:

?Organise Documentation: Gather and organize all essential documents, such as your accounts, legal documents, contracts, leases, employee records, intellectual property documents, licenses, permits, and any other records related to the business.

?Financial Records: Ensure that your accounts are accurate and up-to-date. This includes balance sheets, profit and loss statements, cash flow statements, and tax records. Having a clear understanding of the financial health of the business is crucial.

?Legal and Compliance: Review all legal agreements and ensure compliance with all regulations. This includes contracts, agreements with vendors and clients, licenses, and any ongoing legal matters.

?Operational Documents: Provide operational documents, such as standard operating procedures, organisational charts, business plans, and any other documents that help buyers understand how the business operates.

?Property? and Assets: If applicable, gather documents related to property, equipment, and other assets owned or leased by the business.

?

Employee Information: Prepare information related to employees, including organisational structure, employment contracts, and any HR-related documents.

?Intellectual Property: Document all intellectual property owned by the business, including patents, trademarks, copyrights, and trade secrets.

?Customer and Supplier Information: Provide an overview of key customer relationships, supplier contracts, and any other significant business relationships.

?Due Diligence Checklist: Create a checklist to ensure that all required documents and information are included. This checklist should cover all aspects of the business and the sale process.

?Engage Professionals: Seek advice from commercial lawyers, accountants, and other relevant professionals where needed. They can guide you through the process and help you address any potential issues that may arise.

?Shareholders: Make sure all shareholders are in agreement about the sale.

?By adequately preparing for due diligence you will make the sale process much less stressful.

?Featured Business this month

Plumbing Business for sale

An established family run business? providing a service to the domestic and commercial sectors with many loyal repeat customers.

They have a strong team of engineers and admin support. The company carry's out a wide range of services which include plumbing, heating, boiler repairs, boiler installations,? blockages, drains clearing and bathrooms.

This is a great opportunity for companies looking to acquire a strong operator in the building services sector.

Turnover ￡875,000, Net Profit ￡127,000, Asking Price ￡350,000 plus stock at value

?If you want to talk to me about any of the points mentioned please message me on Linkedin?.Message me

Rupert Trevelyan

[email protected]

?

?

?

?

?

?