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 in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued using a multiple of its profit, usually EBITDA or adjusted net profit. The multiple depends on factors such as growth potential, recurring revenue, customer diversification and management strength. Professional valuation provides a realistic price range and helps position the business effectively for buyers.
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 a business?
Selling a business in the UK typically takes between six and nine months from preparation to completion. The timeline depends on business readiness, buyer demand and the complexity of due diligence. Early preparation and clear financial reporting can help shorten the process.
When is the best time to sell a business?
The best time to sell a business is when it is performing strongly, growth prospects are clear and you are not under pressure to sell.
Business owners often achieve the strongest outcomes when:
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Profits and revenue are growing
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Financial records are clear and well prepared
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There is visible future growth for buyers
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The owner has planned the sale 12–18 months in advance
Market conditions can also influence valuations. Strong buyer demand, sector growth and favourable economic conditions can increase acquisition activity, but a well-prepared business can attract interest in most markets.
Deal activity often increases during spring and autumn, although transactions complete throughout the year. In practice, preparation and business performance usually matter more than trying to perfectly time the market.
Ultimately, the best time to sell is when both the business and the owner are ready, with the company positioned to demonstrate strong value to potential buyers.
Do I need an adviser to sell my business?
Many business owners choose to work with an M&A adviser to manage the sale process. Advisers help value the business, approach qualified buyers confidentially and negotiate terms. This structured approach can increase the likelihood of achieving a higher value and a successful transaction.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymous buyer approaches and strict non-disclosure agreements. Potential buyers receive limited information initially and must sign an NDA before any sensitive details are released. Business owners approve prospective buyers and maintain visibility over all documentation throughout the process.
How do I value my business before selling?
Valuing a business before selling usually involves analysing profitability, identifying valuation multiples and assessing key value drivers such as recurring revenue and customer concentration.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…