In our experience, no two deals are ever the same. There are so many permutations to a deal such as buyer profile, seller profile, macro and micro market events, timing, rationale for interest in a target etc. What we can say is that selling a business is a process with a requirement for time, commitment, patience and resilience. Our advice is to have someone at your side who is experienced in the process and on whom you can rely to share insights and advice on what to expect and how to react at varying points throughout the process.

Depending on the type of business one traditional valuation method would be based on a mathematical calculation by applying a multiple to past profits. Again, depending on the type of business i.e. size and sector, said multiples would naturally vary. According to analysis into UK SME business sales, a multiple could vary anywhere between 2 and 7 times.

Foxgrove Partners is very much of the thought that traditional, simplistic valuation methods do not capture future value for a business (for both seller and buyer) and is therefore fundamentally limiting. We do not lead any process with a value. We rather seek potentially interested parties whom we believe stand to benefit strategically and then invite them to place indicative valuations on the business. It is these indications of interest which then form the basis for any continued discussions.

Unfortunately, there are numerous factors which can impact a sale from completing. These can cover anything from macro market events (the most recent obvious example would be Covid-19) but can also include a change in strategy of buyer, funding access and even a change in appetite from the seller.

Regardless of these potential factors, Foxgrove Partners aims to try and understand all potential / likely areas of challenge to the successful outcome of the deal and plan accordingly. ‘Contact us’ today to arrange a discussion around exit planning.

Again, there are any number of elements which can impact the time it takes to sell a business. However, you should be prepared for the process to last between 12 – 18 months. Some deals may complete in a shorter timeframe due to being, for example, well prepared and having a credible and committed buyer. However, some deals can take two or more years to sell. This could be, for example, due to macro market events or compliance issues to name a couple.

Foxgrove Partners has a great deal of experience in dealing with clients who have already been approached by a buyer. There are simplistically two elements to consider here. Firstly, there is the valuation (price and mechanism i.e., how do they intend to pay the price offered). Whilst it is certainly flattering that someone sees your business as a suitable target, and even if they have offered a generous valuation for the business, how do you know this is fair value and that potentially someone else might offer more or on better terms? And secondly, assuming the offer and terms are acceptable, can you be certain that the buyer can deliver as promised (without changing terms and/or value as the negotiations advance) and in a suitable timeframe?

With Foxgrove Partners’ experience, and assuming the buyer is genuine, we aim to confirm any valuation and terms via a competitive process. And work alongside you and your legal partners to deliver effectively a successful due diligence process.

Please ‘contact us’ ahead of accepting any offer. We’d be more than happy to share our initial thoughts and feedback in this regard.

There is no compliance requirement to appoint any broker or M&A advisor. You would be well within your right to proceed with a sale off your own volition.

The challenge and drain on your time as a business owner, be that with hands on management thereof or even with little or no day-to-day involvement (‘only’ strategic contribution), is significant. One of the biggest contributors to an erosion in value and terms of a deal is a decline in business performance and/or a protracted process. And this is very often as a result of the owners needing to take their eye off the business ball to focus on the sale process and negotiations.

Appointing an experienced advisor, someone whom you trust and have aligned interests with who can manage a process with your best interests at heart, will undoubtedly add significant value to the ultimate outcome of a deal.

A typical fee structure for business sale advisors would be split across two parts, an upfront retainer/consultancy fee, with a success fee on a completion of the transaction. Foxgrove Partners is aligned in this regard as it believes this delivers the best commitment to a mutually beneficial outcome – we are committed to offering you best in class service, advice and commitment for the upfront consultancy fee while being aligned to strive for the best possible value and terms upon completion.

Firstly to say we do not consider ourselves brokers but negotiators. We do not align ourselves with any purchasers, be that strategic trade buyers or equity partners. Our alliance is to our clients and we focus on negotiating the best possible terms, aligned to their wants and needs.

Please ‘contact us’ , fill in your details and we will get back to you shortly.

Alternatively, please call us directly on 07769 270 728 or email us at info@foxgrovepartners.com

Confidentiality is paramount so please be assured that all enquiries are treated in the very strictest of confidence.