Selling a business can be a very time consuming process, it can impact the day-to-day performance of your own business. Without the necessary experience you may end up losing value through the process. You will most likely be dealing with experienced M&A professionals who know the processes and how to find issues/gaps or liabilities within your business.
When choosing an advisor you need to make sure that they are experts within the sector and as a result they can get the value you want for your business.
Our four stage process starts with a no risk obligation Transaction Readiness Report and allows you to progress with confidence to completion.
Our transaction readiness report will allow you to fully understand the key elements of your business and indicates if the business is ready for sale at the valuation required.
• Summary business review
• Transaction readiness report
• Taxation overview
• Market valuation
• Buyers interest report
Day 1 Information request sent to client to enable project to start
Day 6 Receive back client information
Day 7 Transaction team start work on the report
Day 9 1 hour 1-2-1 session on the business and its proposition
Day 12 Report completed
Day 13 Face to Face or Video meeting to review the report
Day 20 Review next steps
Day 21 Agree next steps
As we move forward from stage one we now look to develop your unique proposition into transaction documentation and prepare you for Due Diligence should you you accept an offer.
• Transaction documentation
• Buyers approach report
• Buyer introduction meetings
• Set-up data-room and start due diligence preparation
• Negotiate with buyer on valuations
• Weekly review meetings
Month 2 Follow-up 1-2-1 to review further information for proposition
Month 2.2 Complete teaser with client sign off
Month 2.3 Complete Information Memorandum
Month 2.4 Agree with client buyers approach list
Month 2.4 Approach buyers for interest, valuation, questions
Month 3 Face to Face or Video meeting with buyers
Month 3.1 Set-up data-room and list of due diligence questions
Month 3.2 Negotiate with buyers and agree valuation and deal
As both buyer and seller agree that their are good synergies between the business the key part of this process is about the getting the best deal for you and ensuring that it is equally represented in the Heads of Terms agreement that you will sign before moving to Stage 4.
• Negotiation with buyer on Heads of Terms document
• Agree roadmap for completion
• All parties introduction including taxation and legal teams
• Formal Due Diligence request documents
Month 3.1 Receive from buyer Heads of Terms document and circulate
Month 3.2 Review meeting with lawyers and shareholders on Heads of Terms/Letter of Intent
Month 3.3 Highlight and negotiate outstanding issues
Month 3.4 Heads of Terms signed and agreed
Month 3.5 All shareholder and principles meeting to kick-off stage 4
Often described by sellers as `Death by a thousand cuts` as you have so many obstacles to overcome at this point to either maintain or grow the valuation. At this point expertise and experience in completing a deal can save you thousands if not hundreds of thousands of pounds.
• Support with due diligence and uploading to data-room
• Review of Net Working Capital/Equity Bridge
• Negotiate with buyer on obstacles
• Weekly principals meetings
• Support with SPA document reviews and tracking
Month 3.4 Receive Due Diligence questions for legal, taxation and finance
Month 4 Upload additional documents to data-room
Month 4.3 Answer initial Due Diligence questions
Month 4.4 Review net working capital/Equity Bridge calculations
Month 5 Receive 1st draft of the SPA
Month 5.1 Complete disclosures
Month 5.3 Negotiate outstanding obstacles
Month 5.4 COMPLETION - Great job everybody!
Once most corporate finance businesses have their success fee you will not see them for dust. At Venture Corporate Finance we believe that the you are completed when you have all your money and your relationship matters to us beyond that completion signing day.
Support with completion balance sheet reviews
This is generally the timeline taken for a business to sell. This timeline can be quickened should the seller have the relevant information and proposition to sell their business or equally it can be lengthened due to a business that is not transaction ready. Wherever your business is Venture Corporate Finance can help.
No Fee for this bespoke and detailed report.
All we ask for is 60 days exclusivity to complete and present the analysis.
A one-off fee is incurred once you agree to sell the business and then a monthly fee is payable from Heads of Terms to Completion.
Once you have signed the Share Purchase Agreement (SPA) and competed the sale of your business then a success fee will apply.
We will sign a strict NDA before any information is passed. All information is then held in a secure data site that you can access and delete at any point. At no point will we pass your information to any other parties without your knowledge.
All advisors will tell you have great they are, they know the buyers, they have experience of transactions but in reality choosing your advisor will come down to - do you think they are credible and do you believe you can work with them to achieve the best result for you?
The Venture Corporate Finance way is to ensure that you start with a no-risk solution. This is our Transaction Readiness Report which allows you to know your market value, understand if buyers would be interested in your business and determine if you are actually ready to sell!. If you then agree to go forward with a sale process we would look for a commercial fee plus a success fee when the deal is completed.
The process from start to finish can take anything from 4 months to 8 months and we generally sit someplace in the middle. The timeframes are dependant on a number of factors including the availability of your data, seasonality and most recently lockdowns. We have completed deals where clients are fully ready with the data in 3 months and others have taken 7 to 12 months. Do not listen to the brokers that have accelerator programmes or quick transaction processes as these short cuts lead to your losses later.
Venture corporate finance
13 Hanover Square, Mayfair, London, W1S 1HN 5 Piccadilly Place, Manchester, M1 3BR
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We like to keep our transaction page private as it contains one of our unique aspects to our business - Who is buying what businesses. With our extensive reach of buyers both UK and Internationally we like to keep this for the review of our prospects.
If you would like to understand more please let us know.