Technology may be at the heart of your business, but most acquirers will be at least as interested in your customers as your technology (unless of course it is nascent technology). A good mix and spread of customers will naturally be more attractive than having...
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An acquirer is buying the future, so it is important to articulate a credible road map for the business. A good question to ask yourself is how would you spend a £1m+ investment in the business? If you are unable to come up with a...
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Many buyers see the acquisition of smaller businesses as potentially more hassle than for larger ones and therefore it is important to establish the credibility of the business at an early stage. Buyers are generally cautious, especially when reviewing the acquisition of owner-managed businesses. Establishing...
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A tidy business contributes hugely to an effective sale and there are plenty of things to consider and implement to ensure your sale process goes smoothly from the very beginning. It’s mostly in the preparation – we all know the ‘6 Ps’ rule (perfect preparation...
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First impressions count. The first thing potential acquirers will do is take to the Internet and study your website. Ensure the content is up to date and has suitably contemporary news and customer testimonials… You might also want to adapt the website to project the...
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Basic but so essential, is the ability to describe your business succinctly to a potential investor or anyone for that matter? This is the classic ‘elevator pitch’ – it needs to be concise, brief and gain the interest of people so they become more inquisitive....
Continue readingThe most common question we get asked by owner managers considering selling or buying a company is “what are the typical multiples being paid”. This initiates a collective groan within Prism because it pre-supposes that there is a common multiple. Two businesses earning similar profit...
Continue reading“No Gain without Pain” is an expression frequently used by athletes to reflect the often tiresome efforts that are required to achieve the success they seek. If you are a seller, the legal due diligence process involved in selling a company has some metaphorical similarities...
Continue readingThe current economic climate has produced more opportunities to buy on the cheap. But buying a distressed business is not for the faint hearted and should be approached with care. This brief report sets out some common themes from the perspective of an insolvency practitioner....
Continue readingI had cause to be looking at the data we track on M&A activity in this sector and did a quick analysis of profit multiples of a pool of recent transactions. Now it would be all too easy to report a simple number here and...
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