In our Valuation Methods and Multiple Arbitrage guide, we look at how you define value. Is buying cheap a sure way to create value and what should you look for over and above business financials? Avondale is a leading mergers and acquisitions strategy consultancy providing transaction advice, strategy and funding to the best entrepreneurs and…
4 minutes read In today’s climate of economic uncertainty and political turmoil, it is easy to succumb to pessimism. Every business encounters obstacles but dwelling on worries can exacerbate issues and lead to burnout. While conventional wisdom advises doubling down and pushing harder in tough times, what if you and your team are already stretched thin?…
7 minutes read Succession has been a huge TV franchise hit for HBO. It has ageing patriarch Logan Roy contemplating what the future holds for him and his media empire. You may not have an empire, but your business is valuable, and you should consider succession. Will it be to the family, a trade sale, a…
10 minutes read In the title, we draw inspiration from the name of the renowned 1989 book “Barbarians at the Gate” on leveraged buyouts written by Byran Burrough and John Helyar. This narrative characterises financial buyers as modern-day raiders who are not armed with “real money.” However, contrary to the position in 1989, today the coffers…
9 minutes read The market has shifted, and for many, fast-track growth seems like a distant dream. Investors and buyers are treading more cautiously but there is still good money available for shareholders to sell or take investment where the business is profitable, predictable, and robust. So, you might ask “Why sell your business in a…
5.5 minutes read Preparing your business for sale is a critical step in ensuring a smooth and successful transaction. Even if you are not actively looking to sell your business, being ‘sale ready’ is essential if you are looking to sell in the future as you never know when a buyer may approach. There are many…
9 minutes read A sale of your business to all the employees via an Employee Ownership Trust (EOT) is a relatively simple, advisor and vendor-driven exit strategy and therefore more immediate than a trade sale. What’s more, to encourage such sales, they are currently subject to 0% Capital Gains Tax, provided they meet the qualifying rules.…
6 minutes read Buyers and investors have remained highly active despite the market volatility, but how can you best prepare your business for sale to drive the “we need, we want” motivation in buyers in a market where quality pays? 1. Fail to plan, plan to fail This may be just a saying, but its essence…
8 minutes read From a legal perspective, when purchasing a company in the UK it is your job to check that everything is accurately represented. UK law operates on the principle of Caveat Emptor, which is derived from the Latin phrase, “quia ignorare non debuit quod jus alienum emit” meaning, ‘let a purchaser beware, for…
3 minutes read With the economy stagnant and following Kwasi Kwarteng’s mini-Budget, major stumble in September, Jeremy Hunt today presented a slow and steady budget that aims to trim inflation whilst boosting productivity and growth. But will it work? The key changes for businesses are: Corporation Tax (“CT”): As previously announced this increases from 1 April…
5 minutes read In business valuations, ‘Debt Free Cash Free’ is a commonly used term that impacts the sale process. At Avondale, we know that selling your business is a huge step and one that will have a far-reaching, and hopefully positive impact on your future. However, the business sale journey will take you down many new…
5 minutes read An outstanding business, with great growth potential in an expanding market and strong recurring revenue, will always command a premium value. It can, however, take many years to design and create such a business, and often it requires time, capital, the right team and place. So, if we put aside the exceptions, how…
9.5 minutes read Changes In 1972, David Bowie released “Changes,” a timeless song that still resonates strongly in today’s era of upheaval. Beyond its musical brilliance, the lyrics hold significant relevance to the ever-evolving landscape of business and exit strategies. They encapsulate the need to adapt to the turbulent environment in which today’s businesses operate.…
11 minutes read Cost Reduction With margins squeezed and slow growth in a world of inflation, there are fewer opportunities to pass on your increased costs. Business costs are challenging, on second thoughts, they are psychologically difficult – but there are choices. How do you review your cost base and spot ‘layer cake’? Where can…
4.5 minutes read The impact of Capital Gains Tax rates on business sale timings The sale of a company is often the ultimate goal for an entrepreneur. Cash in the bank and freedom of time – however, with your business generating a good yield and alternative investments being volatile, many business owners understandably choose to…
21 minutes read Everybody’s Free to Wear Sunscreen Some of you may recall “Everybody’s Free to Wear Sunscreen“, the brilliant song by Baz Luhrmann. The line “sometimes you’re ahead, sometimes you’re behind…” seems particularly apt in these crazy times, it’s also relevant for anyone selling their business – in that timing is important but so…
12 minutes read The Market Recessions are not just about poor economic growth, they are often accompanied by other characteristics such as widespread job losses, fewer available jobs, and more Government relief. Investors may baulk, but stocks tend to bounce back rapidly making recessions a good time to invest. With all the turmoil in the…
3 minutes read Today’s Autumn statement resembled a tightrope walk – increasing income (taxes), cutting costs (the state) and improving the balance sheet (debt and interest) – all whilst inflation is rife, and economic growth has stalled. It felt as though the Government was sway-dancing on the tightrope to ‘Everybody Hurts’ (the 1992 REM classic and…
3 minutes read Firstly we would like to wish everyone a Happy New Year. We hope you had a good break and are now ready to tackle the year ahead making 2023 a successful and prosperous year. With the announcement of the Spring budget set for the 15th of March 2023, there is speculation about potential changes…
10 minutes read Our series of articles on the ‘Perfect’ Business Sale a couple of years ago proved to be very popular, so we thought it would be good to start 2023 with a summary of what we believe are the key strategies to achieve the perfect business sale. The ‘perfect’ business sale is a fast,…
5 minute read Know Your Business to Improve Saleability As a business leader, you hope your company will be profitable and achieve incremental growth. You have a good feel for the level of profit your company is going to deliver over the next 12 to 18 months but the value you have in the business usually…
12 minute read Introduction Negotiating the best price for your business is key when research shows that more than half of the companies in the UK are undersold. They do not achieve maximum negotiated value – they only secure financial sale value. Surprisingly, the cause of this is not always sale preparation or the company…
An exit strategy is a plan to create succession or liquidate the value of shares. A successful exit will focus on profitable value and ideally realise the goodwill inherent in a business; that being the customer loyalty that results in both current and future profitable revenue. Some corporates will also divest non-core assets to realise…
How to Improve the Saleability of Your Business Selling your company is the largest financial transaction most people ever undertake. Despite the large sums of money involved, it is surprising how most business owners do not plan adequately. This is one of the key reasons many business owners get a nasty surprise – approximately a…
How to Build a More Valuable & Sustainable Business Turnover is vanity, profit is sanity, but value is the reason. That is to say, the ‘reason’ many build successful businesses and work incredibly hard is the hope to sell those businesses for ‘beach money’ – beach being the metaphor for the financial freedom to choose…
6.5 minute read The M&A market continues to go from strength to strength. Trade buyers need to make acquisitions to shift their business models and create scale and private capital is looking for the yields that smaller businesses can provide. Valuations are holding and if you are planning to sell your business, the following revisited…
2021 M&A Trends and Mid-Year Review It’s a world of volatility and low organic growth; yet many businesses are still outperforming expectations. It’s also a world of superabundant capital – too much money that is looking for a yield, which is rocket fuel for buy-outs. M&A is a critical component of strategy, so what is…
How To Prepare a Business for Sale During the Covid Pandemic In this broadcast, Kevin Uphill and Tim Hardman discuss how to be sale ready despite volatility, how to create a standout position and a ‘we want, we need’ buyer motivation and how to scale to sell. They also share why information technology is critical…
Business Exit Strategies: The Do’s And Dont’s A business exit may be the largest transaction a leader will undertake, and the right approach can make a fundamental difference between success and failure. Mistakes can be costly, and here we present the most common slip-ups and how to avoid them. In our Exit Strategies: 11 Worst…
9.5 min read A business exit may be the largest transaction a leader will undertake, and the right approach can make a fundamental difference between success and failure. Mistakes can be costly, and here we present the most common slip-ups and how to avoid them. 1. Failing to Prepare The Business Exit Strategy Many owners…
In our ‘Vendor Assist – How to Strategically Prepare for Sale & Vendor Due Diligence’ webinar Kevin Uphill, Chairman of Avondale, is joined by strategist Stewart Millington to discuss the objective of a vendor assist evaluation. Topics covered include building a ‘sale ready’ data room, valuation and finance, legal and business reviews. If you would…
