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Business acquisition is a strategy favoured by many businesses in the current climate. It’s a great way of expanding into a new area when compared with the costs of innovating, building a distribution network or simply procuring more space when organic growth is challenging. A buy-and-build strategy can significantly accelerate the growth of a business, including for those that have already invested for expansion.
Our collaborative approach starts with gaining an understanding of a buyer’s rationale for an acquisition and the key drivers underpinning the decision.
If the acquisition is not being funded from your own resources, we can assist you in raising finance. We can provide insight into the optimal structure of debt and equity, using the expertise of our financial modelling experts to create an integrated business plan.
If you are looking for equity investment we can help you to access this. We can also advise on where to raise debt or research available alternatives.
At Create, we take a pre-emptive approach to the threat of insolvency. From our experience there is no ‘one size fits all’ solution for companies facing the risk of insolvency. Each business is facing a number of unique challenges and requires a bespoke solution for your business to recover. We make no charge for initial meetings and are completely confidential.
This is an understandably emotional time for you and your business colleagues. There is a clear need to determine whether your business is viable. The programme we use is to first understand, then assess your business and its needs. We strive to understand the trading challenges and design the appropriate road map to recovery for you.
Our goal is to act in your best interests: safeguarding your business assets and your income. We know that business worries impact on the home and it is our task to lessen that impact by providing real time solutions. If you are in need of guidance or feel things are slipping away, your first steps should be to seek a meeting and share your burdens. We have a great deal of experience and expertise in debt reduction and making the cuts necessary to avoid insolvency.
Don’t delay, the sooner you seek advice the chances of your business surviving are enhanced. Many business owners are surprised and relieved to discover they had more options available to them than first thought.
If the financial difficulties facing the business are proving too much, we can explain the appropriate options to you: Voluntary Arrangements, Administrations and Liquidations.
Many people are under the illusion that a buyout is not possible because team members do not have sufficient funds collectively to buy a business out. This is a misconception.
While it’s true to say that a level of personal investment is required from a buyout team in return for a share of equity, the vast majority of the consideration is usually provided by third party financial institutions. The personal investment required by members of the buyout team needs to be meaningful to each individual and typically represents around 6 to 12 month’s salary. The investment made by management is important as it serves to demonstrate their commitment to the MBO to third party funders.
Banks obtain their return on investment by way of interest on the sum advanced. The availability of bank finance is therefore reliant on the ability of the business to service the future capital and interest repayments following legal completion of the buyout. Alternative sources of buyout finance might include Private Equity or Venture Capital Investors and often Vendor Deferred Considerations including potentially structuring the sale on an Earn-Out basis.
- Appointing a Corporate Finance adviser on a management buyout will ensure that:
- The right price is negotiated and the appropriate right payment terms.
- The MBO team avoid conflicts of interest in terms of negotiating with their employer.
- That a robust and credible plan is presented to potential third party funders.
- The MBO team have access to available finance.
- An optimal funding package is achieved for all.
At Create we will project manage and lead the buyout process from outset to legal completion, providing insight and support at each stage.
Raising corporate finance can be a tricky business. Create can help you navigate the mainstream and more esoteric options, providing insight and advice throughout.
Key areas we can help with:-
- Angel finance
- Business loans
- Peer lending
- Small business grants
- Venture capital
If you are thinking of selling, the ideal period to start planning is usually two to three years in advance, allowing time to maximise the value of your business in the market. This holds true with both owner managed businesses and private equity-backed sales.
It may not be the time frame that business owners generally consider but in fact this is the ideal time to appoint a Corporate Finance Adviser. Ideally we would be involved in the sale process at least two years before the anticipated date of sale. We work in a collaborative way to fully understand your business and the opportunities, risks and challenges that it faces, to help present it in the optimum position for a sale.
We will use our experience to demonstrate what the market value for your business is, then help you to identify key potential acquirers, who are both willing and able to pay a strategic value for the business and we will work with you every step of the way, offering insight before, during and after completion of a sale.
Any business can, in its normal life-cycle, face issues of underperformance and financial distress.
The reasons can be simple or complex and a turnaround practitioner can be called in to help assist the business owners, in conjunction with relevant stakeholders, to formulate and implement a strategy to avoid problems further deteriorating over time.
With Create we work alongside you in a 3 stage process:
1. Understanding the depth and severity of the problems being experienced.
2. Stabilising the position: Providing your business with a route map to recovery.
3. Implementation and working toward the best practice: What is often underestimated in turnaround situations is the need for business owners to invest the required emotional capital and a willingness to accept change. Once, turnaround is ongoing we will aim the business towards the best practice.