The Value of Giving Back
There are many reasons why business owners engage in Corporate Social Responsibility (CSR) programmes, and absolutely none of them involve increasing the value of your business to an acquirer. But, your CSR track record may be more than something for you to be justifiably proud of – don’t underestimate the value of giving back! As you start the process of selling your business, you may find it opens up new opportunities for leveraging the right deal with acquirers.
In a previous blog, we looked at 5 factors that will impact the value of your business… The jury’s out on whether CSR affects market values in monetary terms, but it is certainly another factor which is increasingly important to both vendors and acquirers. A strong track record in this area, therefore, may increase your desirability in an acquirer’s eyes – which could in turn have a positive impact on your Enterprise Value.
CSR is a business’ contribution to societal goals that make an impact, create values, affect lives, or other ethically oriented practices. CSR makes everyone feel good, and helps your staff feel like they are doing more than generating profit… CSR is also great PR and contributes to a brand’s reputation. This, in turn, helps to deliver differentiation in a crowded marketplace. We have talked many times about how acquirers are looking at more than just the bottom line when they are considering an acquisition. The strategic alignment, future goals, brand reputation and integration of a prospective acquisition is also highly significant. CSR can be an important factor in all these things.
Synergy has always been a key element of acquisition decisions, and it makes sense that CSR may be a significant desirability factor within synergy. This could either be as an element of strategic fit between organisations, or as an opportunity for an acquirer to benefit from already established CSR practices. Well-established trust and/or developed relationships with stakeholders via embedded and successful CSR practices, is understandably attractive.
A good example of the role of CSR in a successful acquisition is the recent Entrepreneur’s Hub-led deal for Alerter Group Ltd. Alerter is a technology company with CSR at its core, providing emergency communications systems for people with sensory and physical disabilities. It was important for business owner, Steve Haseldine, to find a home for his business that would remain true to his mission and maintain the societal benefit Alerter Group had delivered.
Alerter Group Ltd was acquired by Sdiptech AB (publ) a Swedish engineering company providing technical services and products for urban infrastructures. Alerter Group’s CSR credentials were significant in attracting Sdiptech to the deal. Read our case study Entrepreneurs Hub advises on the sale of Alerter Group to Sdiptech for the full story.
When you sell your business, it is critical to market to the right prospects and present its attributes in the most appropriate way. It’s also hugely important that you find a suitable home in terms of ethics and values for your company and staff. At Entrepreneur’s Hub, our experienced M&A Advisors work with you to develop a picture of your ideal acquirer, draw out the key aspects of your business which will interest them, and will continue to identify synergies and opportunities as the deal negotiations progress. We’d love to talk to you, free and in complete confidence, so why not get in touch?
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…