A successful acquisition can lead to increased profits, greater market share and perhaps a stronger management team. It can bring in new expertise, allow you to access new markets and take your business to the next level.
But like much else in the corporate world, it’s a risk. Buying the wrong company, or paying the wrong price, can wipe out your competitive advantage and leave you a step behind the rest.
We understand the common pitfalls of buying a business, so we strive to help you minimise your risk in any acquisition. We will guide you through the process, from identifying your target, to paying the right price for it when the time is right.
We help you define criteria for your target by sharing our perspective and experience. This helps you set your sights accurately and realistically so that you can choose the right business. Our database of over 2.3 million UK businesses can help pinpoint precisely the types of business that match your particular aims. We also have access to financial information on international companies, giving you the details you need to proceed.
Once you have identified your target business, we can check it out for you. Alliotts is made up of seasoned professionals in the due diligence process, so you can be sure that you’re in safe hands. We will help you assess how well the company performs in the areas of finance, legal, environment, IT and HR. We can also be on hand to go through their commercial performance as well, leaving you completely prepared.
Our due diligence process will help you decide the worth of what you are acquiring and what you should pay. We use valuation techniques that include net asset value, income capitalisation and price earnings. We also look at EBITDA (earnings before interest, taxes, depreciation and amortisation) ratios and comparisons.
Remember – one of the key reasons why so many acquisitions fail is that the purchaser pays too much.
Having conducted a detailed financial review of your existing business and the one that you are seeking to acquire, we can then highlight what finance is required and help to ensure sufficient new finance is put in place.
There are a number of different options for raising finance including various government loans and grants. For more information, or if you are considering buying another business, get in touch with one of our specialist corporate business finance advisors. Ian Gibbon, Chris Cairns or Dipali Buch are on hand and happy to help you with anything you need advice on.