Buying a Business

As a business owner, you will only be too aware that growing a business year on year is hard work. There are many exterior factors that influence results, and you could find yourself spending more and more time managing day to day operations, rather than focusing on business development and strategic direction.

One alternative you may wish to consider is buying a business; perhaps a business that has some synergies with yours. This route can add new products or services to your business , can certainly increase your profitability, and if you choose wisely, you will make significant savings around the overhead structure of your larger business.

Growing your business by acquisition can deliver:

  • Improved profitability ratios
  • Significantly quicker results when compared with organic growth
  • An excellent return on investment which can contribute significantly to your future plans
  • A stronger organisation with a lower risk profile

With our help you find a business that meets your needs. We will support you in every stage of the acquisition, including sourcing potential businesses for sale and coaching you through each stage of the buying process.

Your First Acquisition? Buying a Business?

If you are not yet a business owner but you are working hard to generate profit for someone else, would you like to take control of your future? Would you like to increase your personal freedom? Buying a business could be just the thing for you.

West Midlands Business Advisors will support you through the process so that it does not feel as daunting as you may first think.

What type of business do you want to buy?

The first step is to establish what type of business you are looking for. There are considerable advantages to buying a business that has similarities and synergy with your own. A business that offers the same key services, or services and products that can add to your offerings allows you to use your skills and experience to your advantage.

When you are exploring which type of business to buy, you should consider the advantages and disadvantages of buying a business that is financially sound to ones that have some financial challenges.

  • A Profitable Business – will have a higher price tag, but it will have all of the necessary ingredients to deliver your ambitions. A lower risk proposition. A strong proposition that has potential for growth .
  • A Stressed Business – is underperforming, with numbers that need improvement and performance following a downward trend. However, if you have the necessary skills and experience, this could be the ideal type of business for you. You will be able to purchase at a reduced price and with our help, could see a very quick return on your investment.
  • A Distressed Business – A business that is insolvent or on the verge of insolvency. You will buy a distressed business for a notional amount whilst taking on its liabilities. However, if you understand how to manage the liabilities and have our support, you will be able to reverse those liabilities and restructure the business, leaving you with a successful purchase that you may have previously considered to be out of your reach.

Once you have established what kind of business you are looking for, we can find opportunities that are on the market that meet your requirements, as well as sourcing businesses that are not on the market but may consider selling. We can also speak confidentially to organisations in your existing supply chain that may want to sell.

Where do you need help?

We can guide you through the stages of an efficient buying process, including:

  • Sourcing businesses that meet your requirement.
  • What is a Trade and Asset Sale?
  • Share Purchase
  • Evaluating the opportunities to determine their suitability for your requirements
  • Help as required with evaluating business finances
  • Helping you develop a value for the acquisition
  • Developing a deal structure that minimises any risk to you
  • Finding funding solutions that meet your requirements.
  • Supporting you in discussions and negotiations with the seller.
  • Helping you with the preparation of a Heads of Terms agreement.
  • Supporting you through due diligence, investigating and documenting the details that demonstrate the business is exactly as described to you by the seller.
  • Working with legal teams in completion of sale and purchase agreement.

Our coaching plan will guide you through each stage of buying a business, from finding your ideal business, through negotiations, agreeing terms, and finally completing a deal.

Book your free consultation to find out how we can support you: