Page 27 - Wealth of Experience - Selling a Business 2019

WORKING

WITH ADVISERS

Hiring the right advisers is essential. We’d recommend that you find someone with a detailed
They help guide business owners and knowledge of private equity. Having someone who
put the foundations in place so that understands exactly what a private equity deal means and
its impact on shareholders and the management team is key.
a deal can happen. Getting sound,
objective advice makes it easier to If you hire advisers from several different firms or companies
reduce the part emotions play in - say you use an accountancy firm that has no ties or real
existing contact with your law firm - you could potentially
commercial decisions. The experts can run the risk of it being difficult for them to stay on the same
provide a more rational opinion and act page.
as a sounding board for thoughts and However, most advisers will have an established network
ideas. with whom they have worked before and are experienced at
Of course, advisers don’t do all the work for owners. To communicating with.
state the incredibly obvious they provide advice - relying Corporate Finance adviser
heavily on client input to deliver on the best course of
action during the exit process. Ideally, Corporate Finance advisers are introduced as early
as possible in the exit process. To begin with, it could
It’s best to think of advisers as a team - not a set of be on a more informal basis as having a team set up to
independent people. Many of them will consult each other. monitor market opportunities is no bad thing. This isn’t
For example, the corporate finance consultant might to say that they can’t make a difference at a later stage,
start liaising with a tax team to find ways of delivering the but in the best case scenario their influence and guidance
largest post-tax sale value to the stakeholders.
early in the process can aid a better outcome. This also
What’s more, it’s important that the advice team is on the gives them the best chance of adding strategic input on
same page and know what the end goal is. Alignment subjects such as the next tier of management, passing on
means that everyone works together to ensure all activities customer relationships and structuring the business in a
and initiatives are complementary to each other. way that will attract a larger deal.
Finding an adviser 43% of our respondents said their corporate finance
adviser delivered ten out of ten in terms of the value they
When looking for advisers, finding someone you have good added.
chemistry with is key. Typically they’ll be involved for a long
period - over 6 months is normal, so a solid relationship Lawyer
based on trust is important. Ideally, over the exit period an Lawyers work with business owners throughout the exit
owner will build up a great deal of rapport with their advice process. Early in an acquisition, they will be conducting
team.
due diligence and preparing initial drafts of the necessary
Try to find advisers with sector experience. They will have documents.
a better idea of the key players in the marketplace, who’s As completion approaches, lawyers will spend time
likely to buy, what they would be looking for, as well as finalising agreements, obtaining signatures on documents
how best to present the business to them. It’s all about and ensuring that the closing conditions are satisfied.
being able to tap into the advisers’ network to find potential
buyers and other experts who could help with your sales M&A lawyers will work closely with their colleagues who
process. specialise in the areas relevant to the transaction. This
could be tax, employment, intellectual property law or
It’s best to get advice from a team comprised of advisers finance. If the sale is to a foreign party, M&A lawyers will
used to selling businesses of your sort of size. If you think engage with local or foreign counsel to ensure that the
your business could be attractive to an overseas buyer, deal is fulfilled in compliance with applicable laws.
make sure you employ someone who has a proven network
with the potential to reach them. Due, in part, to a weaker
pound, we’re seeing UK firms becoming increasingly ...continued over the page >
attractive to international buyers.

26 13 Cooper Parry Wealth Of Experience Survey Q13