Considering selling your business? At fds, we specialise in guiding business owners and shareholders through the intricate process of a company disposal, to trade buyers or private equity firms. Understanding your exit options is crucial for maximising your business’s value and ensuring a smooth transition.
Below, we outline the key steps involved in the disposal process and how fds can support you every step of the way.
Understanding the Key Differences of Trade and Private Equity Disposals
A trade disposal involves selling your business to another company within the same industry. With this, we are often seeking strategic synergies and market expansion. This type of sale typically focuses on integrating complementary products and services. Buyers may pay a premium for immediate operational benefits.
In contrast, a private equity sale involves selling your business to an investment firm that aims to improve the company’s performance and profitability before reselling it. Private equity firms bring capital, management expertise, and strategic direction. They focus on financial returns and growth potential. This type of sale can provide significant capital and support for the existing management team.
Depending on the size of your business, you may believe a trade sale disposal may be more appropriate than private equity, or vice versa. Alternatively, you may be happy to explore both as possible targets. We will discuss this with you, sharing our insights and expertise to ensure the most appropriate targets are identified.
The Disposal Process
Selling your business is no easy task and can often take months of preparation. On average, this takes from nine to twelve months to complete. fds has mastered the company disposal process and have key steps from preparing your business for sale, launching to market, managing communications between interested parties, right through to handling offers and negotiations, and working closely with lawyers to project completion.
- Initial Consultation and Valuation – Our journey begins with a comprehensive consultation. This is to understand your business’s unique attributes and your personal goals. We conduct a thorough valuation to determine the market value of your business. We ensure you have a clear picture of its worth. Our thorough valuation reports will highlight an overview of the industry you operate in, and also provide real-time deal information. This will help to assess the appetite for your type of organisation.
- Preparing Your Business for Sale – We will work with you to collate the necessary information needed to compile a comprehensive sales document, also known as an Information Memorandum and anonymous Teaser Document. To ensure we hit the ground running, your company will be presented in the best possible light. Documents are created specifically for your company, incorporating your branding identity where possible, which is handled by our expert marketers and designers. We take immense pride in the documents we create and have been fortunate to receive high praise from leading organisations and private equity houses on their sleek and professional look.
- Identifying Potential Buyers – Whether you’re targeting trade buyers or private equity firms (or both), we leverage our extensive network and specialist databases to identify and engage with potential buyers who are the best fit for your business. Our goal is to find buyers who not only offer the best financial terms but also align with your vision for the company’s future. Importantly, we will also ensure they have the funds to support the deal.
- Launching to Market—Once the documents are ready and the target list has been signed off, we will launch to the market. We utilise the anonymous teaser document to gauge initial interest before issuing non-disclosure agreements (NDAs) and subsequently, the information memorandum. It’s likely that interested parties will request additional supporting information, which we will handle and liaise with you accordingly.
- Managing Interested Parties—We will manage and coordinate all interested parties and facilitate all party introductions and in-person meetings. We will keep you fully informed of the progress and share updates regularly.
- Offers and Negotiations—Our senior team of directors will handle all negotiations, ensuring that you receive the most favourable terms and conditions. We aim to secure offers that reflect the true value of your business. We, more than anyone, are aware that deals rarely fail because of an inability to agree on a price but rather an inability to agree on terms. Leave this to us; with more than 400 transactions under our belt, we guarantee we will work tirelessly to achieve a deal that aligns with your objectives.
- Due Diligence and Legal Support—The due diligence process can be complex and time-consuming. Our expert senior team manages this phase meticulously. We coordinate with legal and financial advisors to ensure thoroughness in all aspects of the transaction.
- Closing the Deal – We guide you through the final stages of the sale, including contract negotiations and closing procedures. Our goal is to ensure a seamless transition, allowing you to exit your business with confidence and peace of mind.
How fds Can Help
At fds, we pride ourselves on delivering personalised, expert support throughout the company disposal process. We fully project manage all business exit routes to alleviate stress and allow the owners and key senior leadership team to carry on operating the business.
We have extensive experience completing over 400 transactions across a plethora of industries. These industries span from manufacturing and construction, IT and digital, construction and architecture practices, to hospitality and recruitment (plus more!). We believe that being sector agnostic but specialising in privately owned and employee-owned businesses has allowed us to witness most possible disposal scenarios and the types of hiccups that may occur.
If you’re considering selling your business via a company disposal and would like to learn more about how we can support you, contact us to discuss your options confidentially.
