If you have been approached it great news, but we would advise you to air some serious caution.
In our experience these type of approaches can often protract and the process can become very stressful and pressurised. You may rush into the process when your company is not prepared or positioned for sale. The only thing the buyer will focus on will be your statutory and management accounts which is not what you want, especially if you want to maximise value.
If you only have one buyer in the game, as shareholders, you are very vulnerable. Your buyer will know they are in the strongest negotiation position and in control of the process. You can spend months pursuing an opportunity only to find it goes nowhere.
Multiple interest will have a huge impact on the:
• value someone places on the business
• the terms you finally agree to
• and most importantly the speed of the sale
Our recommendation is to add them to list of potential acquirers and treat them in the same way as the other potential acquirers. If they are serious about buying your business this will soon become apparent and having other interested parties will only have a positive impact on the value and terms you are likely to achieve.
This client had an approach and chose to engage the Entrepreneurs Team to handle it.
Just a quick note to say many thanks for all your help and advice over the past year. I have no doubt partnering with you guys added significant value to the business and helped us achieve a wonderful result yesterday.
Please also pass on our thanks and appreciation to Steve, Trisha, Tim and the rest of your team.
If you have had an approach from an acquirer please do talk to us.