Selling a business
Crown Commercial’s business brokers offer an ‘end to end’ professional service to the vendors of privately owned businesses. We have a track record of delivering results due to our detailed understanding of the complete appraisal, marketing and sales process.
We exceed our clients’ expectations!
Experience the difference!
The Initial Business Appraisal
To begin with, we will need to understand the reasons for the sale and gain an understanding of your preferred exit strategy. We also need to take an overview of the business in order to advise as to whether the time is right to sell.
Many businesses are placed on the market without any preparation whatsoever. For example, does the success of the business depend on the current owner? Are specific skills required to operate the business? What are the trading trends? Is significant investment going to be required in the short term? What are the relationships with key customers and suppliers? Does the business have security of tenure on the business premises, if leased?
The Crown Commercial broker managing your sale will give you a realistic assessment and if further work is needed prior to sale will be able to give ongoing consultancy and advice to help you position so that you can achieve a successful outcome.
Appraisal
Once we are both confident that the business is ready for sale we will need to undertake a detailed appraisal.
This process will involve gaining an understanding of your market strength and position, your financial performance including your assets and liabilities, as well as the operational side of the business.
We will then normalise the accounts and apply standard business valuation methods which best suit your business’ structure, i.e. the “basic method” if the business has a high plant and machinery or stock value.
We will need to review your lease agreements and in certain circumstances such as where there is substantial freehold property involved, we may recommend an independent valuation of the buildings. The ‘bricks and mortar’ valuation will be required by your purchaser so it makes sense to undertake the exercise at the outset.
Marketing
As soon as we are formally engaged and once the sales price has been agreed, we will create a tailor made marketing strategy which will include an Information Memorandum for your approval. Once this document is approved the marketing of your business will begin
Our marketing methods include:
Marketing via national online industry portals and social media platforms.
Presenting direct to purchasers registered on our database.
Making confidential approaches to sector-specific prospective purchasers identified by us.
Making confidential approaches to sector-specific prospects we jointly identify with our client.
Marketing of the business can be discreet if required with a targeted approach to purchasers we have existing relationships with.
Confidentiality
Confidentiality is of paramount importance throughout the sale process. All potential purchasers are very carefully screened in order to ensure that they are both qualified and serious prospects for your business. Understanding a buyer’s experience in a given industry may be just as important as their financial position, especially where an assignment of a lease and its obligations, requires landlord approval.
The signing of confidentiality agreements will always be required from all interested parties prior to any detailed information being released. In any event, commercially confidential information will not be released without your approval.
Negotiation
There will normally be a period of negotiations between one or several buyers. Know that we will always have your best interests in mind and will always be keeping you informed, advising you on the best course of action, but ultimately taking your instructions on how to proceed in each instance. Once an agreement to sell the business has been reached, we will draft the sale and purchase agreement outlining the terms of sale in cooperation with your lawyer for all parties to sign. We will cover this in more detail during the sales process and every buyer may have specific requirements or conditions they present in their offers.
Sale and Purchase Agreement
As soon as agreement is reached with your buyer we will draw up the Sale and Purchase Agreement. This document will be used by the lawyers and other professional advisors to ensure that the contracts and other formal documents accurately reflect the terms of the deal. If there is an existing lease, we can also prepare the relevant agreements to transfer that lease and its obligations over to the buyer.
Due Diligence
Your buyer will want to undertake some detailed Due Diligence. We will coordinate this exercise and will be available to try to ensure that all information is provided as requested in a timely manner and any misunderstandings or issues are resolved quickly and to your satisfaction.
Completion
We collaborate seamlessly with all involved professionals, ensuring a smooth and timely transaction. From coordinating final inspections and stock counts if needed, to facilitating the efficient handover of keys upon settlement, our comprehensive approach promotes effective completion aligned with the agreed timescale.
