Before we speak

There is no single multiple that applies to every business. Value depends mainly on maintainable profitability — what the business reliably earns once one-off items and the owner’s own remuneration are adjusted to a normal level — and on how much risk a buyer sees in those earnings.

Customer concentration, reliance on the owner, recurring revenue, the strength of the management team, growth prospects and current buyer appetite in your sector all move the figure. We explain the reasoning behind any valuation, so you can see what supports it and what might improve it.

A valuation should reflect what credible buyers are realistically prepared to pay, rather than simply the highest figure an adviser believes a shareholder wants to hear.

Most private company sales are agreed on a “cash-free, debt-free” basis with a normal level of working capital. In practice, surplus cash above what the business needs to trade normally is usually returned to the seller — either through an adjustment to the price or by being drawn out before completion — while debt is repaid from the proceeds.

The headline enterprise value and the final amount received by shareholders can be materially different. Cash, debt, working capital adjustments and the structure of consideration all influence the eventual proceeds.

How “normal” working capital is defined can make a material difference to what you receive, so it is negotiated carefully. You should also take tax advice on the most efficient way to extract cash.

No. Many of the most useful conversations happen a year or more before a sale. Speaking early gives you time to understand what the business might be worth, address issues that could affect value, and decide on timing without pressure. An initial conversation is confidential and without obligation.

Typically six to twelve months from preparing to go to market through to completion, although every transaction is different. Preparation, finding the right buyer and agreeing Heads of Terms usually account for the first half; due diligence and legal documentation for the remainder. Good preparation is the most reliable way to avoid delays later.

It depends on the buyer and on how the deal is structured. Most buyers ask for a handover period, which can range from a few months to longer where an earn-out or deferred consideration is involved. Businesses that are less dependent on their owner generally give sellers more flexibility. We discuss your preferences at the outset so they shape the choice of buyer and the terms negotiated.

Our fees are agreed transparently at the outset and reflect the size, complexity and requirements of each transaction.

Typically, our fee structure comprises an initial engagement fee to cover preparation and marketing, alongside a success fee payable when a transaction completes.

We believe fees should be commercially sensible, with a significant proportion linked to achieving a successful outcome.

All fees are clearly explained and agreed in writing before any engagement begins.

Send a short message using the contact form, or email Peter directly. The first step is an informal, confidential conversation to understand your business and what you want to achieve. If we believe we can help, we’ll explain how. If we don’t, we’ll tell you honestly.

Established, profitable UK businesses with strong management, good customer relationships and room for sustainable growth. We have a particular interest in business services, construction-related services, specialist services and education and training, but we don’t apply rigid size thresholds and consider each opportunity on its merits.

Our independent advisory services and investment activities are managed separately. Where a potential conflict of interest arises, this will be disclosed and addressed transparently.