Most people will only ever sell one business in their life, but there are excellent opportunities to grow an existing business with well executed acquisitions.

Selling a Business

This is typically done for a “human” reason, most obviously retirement, but it is also often included in a downsizing or streamlining operation, or as part of a long term plan to retirement.  Most exits will take around 6-9 months to facilitate, plus, there will be a handover period, and, especially in today’s market, almost certainly a deferred payment arrangement or earnout.  This varies with each example of course, but starting the process at least 12 months before the desired final exit is essential. 

The whole process can be significantly streamlined, with a better chance of success at a better price (and terms) if a well structured exit plan has been implemented.  This can run from anywhere around 6 months upward, but the sad reality is that the majority of businesses come to market under some form of distress and not as the culmination of a structured effort.  However, a good business will always command strong interest and values, with reasonable terms, especially if the sale is handled professionally.

Buying Businesses

There are lots of reasons to consider buying a business, from a first acquisition, straight forward revenue growth or market share to removing a competitive threat or acquiring something specific of use, such as IP, staff, clients, licences, distribution agreements or know how.  Usually the bulk of what is acquired is referred to as  “Goodwill” though fixed or tangible assets of some sort will almost certainly be included.  The majority of acquisitions are made by real world “medium sized” companies (£5-50M) taking over (generally) smaller companies, though there is no limit to the scope of how deals can happen. 

Other common completions are by way of MBI / MBO, Private Equity, managed portfolios plus an infinite variety of merger or strategic alliance permutations.  Ideally, an acquisition will have significant strategic benefits with strong synergies between parties, along with opportunities to consolidate, remove costs and take advantage of economies of scale.  Often they are opportunistic – as a result of seeing or having a sale memorandum sent – but they can also arise from a properly managed search, whether targeted at specific prospects or as part of a wider campaign.

As a general rule, there are no rules, leaving plenty of scope for creativity.  The important thing is to match a willing buyer to a willing seller and structure a deal that best meets both the objectives of all parties concerned and provides the most advantageous mutually beneficial outcome.

Our Capabilities

If you are thinking of selling or buying a business it is vital that you talk to an expert at an early stage – our ibd M&A advisers are highly experienced professionals who can facilitate the process in the most effective way.

Terry is an ex Managing Director of large blue chip company involved in print, packaging, labeling, application machinery, robotics, bar coding and IT operations. The company employed 2,400 people in the UK and a similar number overseas.

He spent time in USA with Crest Training Group delivering seminars on management retention and recruitment, sales training, and sales management training, to American audiences across the USA.

He has experience also in the European, Asian and Arabic market assisting the Egyptian and Jordanian Governments to establish a policy for self employment for widows and young people. Also, setting up, and successful operation of small businesses. Terry also has experience of assisting small companies to grow under control throughout the UK, Ireland, Holland, Germany, France, Belgium and Spain.

One of the founder members and currently Managing Director of ibd Business Advice Group Ltd, a network of highly skilled ex managing directors and ex-directors who specialise in assisting small and medium sized companies to improve profitability and productivity. The company currently has over 200 advisers and is growing at a rate of some 40 advisers per annum.

Terry himself has spent many years advising small and medium sized businesses in how to overcome obstacles in their growth and profitability. He has hands on experience in assisting companies to grow under control, improve sales, improve profitability, and implementing solutions to problems suffered by small companies because of their size.

Terry is also a visiting lecturer at The University of Chester.

Email: terry.forrester@ibd-uk.com

Having started my career in ‘Corporate life’, I then moved into the SME market, where I have managed, owned, and provided business advice/consultancy in the SME market. Therefore I really can say that I have been there and done it and I know the worries and concerns that owners have. In our ever changing world, desire for Best Practices requires continuous training, development and improvements.

Here at ibd we pride ourselves on the quality, experience and diversity of our accredited advisers, this can be seen in the profiles of our advisers on this site.

ibd accredited advisers are renowned for not writing long reports, but identifying the real opportunities to improve your company, rolling up their sleeves, doing the implementation with you and achieving your goals.

Together we can make ibd your perfect business friend.

Email: kevin.jackson@ibd-uk.com

Additional Information

Interests

Business improvements, management development, organisational development, strategic planning. Watching most sports including football and cricket, playing tennis (chair of local tennis club) and golf. Embarrassingly the 2010 ibd Annual Golf Day winner.

ibd together with the University of Chester are offering this unique Professional Certificate in Business Advice (PCBA) course, combining practical client experience with expert training and mentoring, explicitly for Business Consultants.

The course is structured around the award of a Professional Certificate in Business Advice (PCBA), accredited by The University of Chester.

The PCBA is a 60 credit award consisting of the following three core components:

1.    The ibd Members Induction Programme (MIP). (20 Credits). This covers a full range of professional training in business advice and client management. On completion, you submit two pieces of work relating to your learning from the programme.

2.    The Member In-Service Training/Mentoring Programme (20 Credits). This is the core practical element of the course. It principally involves working (with your allocated mentor) with a minimum of six clients, analysing their business needs, proposing solutions to these needs and implementing solutions and advice. On completion, you submit a portfolio of learning from your experiences.

3.    The Client Case Study Report (20 Credits). A 4,000 word case study report on one of your six clients, demonstrating your diagnosis of their problems, the solutions proposed, their implementation and the successful outcomes.

Exporting and the creation of new international markets for services and products can seriously improve the bottom line of any company.  However, the move towards new market evaluation is not to be taken lightly and special advice should be taken regarding the many aspects of success in overseas markets. Whilst Government support can be advantageous in basic fact finding, the Institute of Export recommends a truly commercial, experienced, proven and ‘in market’ support program comes highly recommended.

ibd provides support and advice for all aspects of pre-market evaluation and market entry. This advice and practical help is provided from long term experience and from inside the target market (e.g. USA). It is a fully comprehensive International Business Development service for UK and Global businesses, from SMEs to multi-nationals. It is like having your own export marketing, sales & management on hand to guide and advise you on all aspects of evaluating and securing new international business but at a much reduced cost to employing someone full time. ibd is very experienced in most industry sectors and has 25 years experience in this field.

If you can say yes to any three of these questions then you may well be a prime candidate for a move into new lucrative international business:

• Have you been in business for 5 years or more?
• Have you been relatively successful in the home market?
• Do you have the commitment, resources and support of the board of Directors to make this move?
• Is your product or service considered as innovative and a leader in the home market?
• Would you take advantage of a simple cost effective pre-market evaluation in the target market for your product or service?  ( apply for details of the Mini Market Evaluation)
• Would you take advantage of UK Government grants as part of the three stage program? (see three stage export program)
• International market research and product/service viability evaluations
• Route to market – Distributor/Partner/Customer search and sales development
• Initial overseas presence can be provided by our in office address, shared base facilities & business development activities
• Sourcing of agents or distributors or J/V partners
• Full  Technical Sales Representation
• Introduction to international investment financing  opportunities
• Subsidiary business set up or sourcing of premises if necessary
• Product (UL -CE & other) certifications, sub assembly or production arrangements
• Full shipping, logistics support, customs clearance, warehousing & distribution

Engaging Support

ibd retains partnerships in many global locations to run its international services who have considerable experience in advising SME clients and undertaking the development activity in all things International. The advice and services will be provided by qualified Directors who have many years of practical international experience are friendly and approachable and provide unbiased, non political guidance.

Need to know more?

If you would like to know more about this service apply, meet with an International Manager in your area for a Mini Market Evaluation or run through a simple international questionnaire, please contact ibdInternational@ibd-uk.com

What clients have said about ibd International services

“I am writing to thank you for organising my one and a half day programme with companies in your area, the services offered by you enabled me to help a cross-section of companies in the South West, who I would not normally have been able to access.” Mr Bob Mason- UK Department of Trade and Industry, Export Promoter.

“We are grateful to you for the professional efforts you have put into successfully recruiting Somerset companies to participate in recent Europartenariat events where the BCC has acted as National Counselor for England & Wales.” Mr Steve Baker – The Association of British Chambers of Commerce, Exports and Trade Manager.

David and his team demonstrated the required understanding of the nuances of international trade and US business culture, including those related to customs and excise, national technical differences, currency complexities and so on. His international experience and capabilities would be most beneficial for any business looking to trade beyond their normal domestic environment. David demonstrated at all times integrity, loyalty and commitment. He is a self starter very tenacious, self sufficient and self motivated. Gordon Hutchison – Managing Director, APHEL Ltd and now Aphel Technologies  Inc, Florida, USA. Govenor’s New Business Award 2006 due to the direction of David

“I do fully support any initiatives that you and others may take to further regional exports and to keep companies better informed about exporting.” The Rt.Hon. Paddy Ashdown former leader of the Liberal Democratic Party and  Member of Parliament.

Overview:
This client has 3 electricity supplies (two HH and one NHH meter) costing over £168,000 per year. Negotiations resulted in total savings of £17,200 over a 12 month period together with a further reduction of £4,200 off their annual Gas expenditure.

The customer is due to soon move premises and it has also been possible to negotiate a further £45,000 or 30% reduction in their annual electricity bills for their new energy supply via one half –hourly meter.

Outcome:
An overall saving of over £21,400 for the old Premises with a further £45,000 reduction to follow after relocation

Oxfordshire based printing company with a Turnover of £5 million per annum

Overview:
This client requested a review after they Received a termination notice from their electricity Supplier informing them of a 115% price increase for their next contract.

Outcome:
It was possible to negotiate a new 12 month Contract with a different supplier achieving a saving of of over £47,000.

Glasgow based fishing equipment supplier with 10 stores in and around southern Scotland. Turnover £10million per annum

Overview:
The firm requested a review as part of a cost benchmarking exercise. Several suppliers had also been approached directly. Through the supply chain and relationships the best rates were offered out of all others in the tender process.

Outcome:
The stores vary in size from a megastore to much smaller units with lower overheads the savings made reflect this. Savings on electricity for the group was £26,800, which ranged from £14,169 for one store to £379 for the smallest unit.

A State School (community College) in the South West of England

Overview:
This community college had a simple system with two ISDN2’s and 4 analogue lines. They had previously had a battle with a local telecoms company who had rolled them into a five year contract due to missing termination end dates. As a result of the review significant savings were realised.

Outcome:
100% of the Savings were passed to the client which were: Total call saving: £3,240 = 30% Total line rental saving: £850.00 = 20% Everything was dealt with from termination through to recommendation.

Two GP Surgeries

Overview:
These two surgeries had energy reviews with a tendering process that took less than 5 days. New contracts were signed off within two days and 100% of the savings passed on to the client.

Outcome:
Surgery 1 achieved total gas savings of £1,351.79. Surgery 2 achieved total electricity savings of £3,118.34

Two Care Homes, Care home 1 is located in Devon, Care home 2 is located in Yorkshire

Overview: Care home 1 has 25 residents. significant savings were made in gas and electricity expenditure. Care home 2 benefited from savings in gas, electricity and telecoms expenditure.

Outcome:
Care home 1 benefited from 100% of the following Savings, gas £731.76, electricity £3,853.27. Total – £4,585.03. Care home 2 benefited from 100% of the following savings, gas, £8,665.17, electricity, £3,090.26, Telecoms, £1,600.

Total – £13,355.43

• ENERGY – green energy, reduction of carbon emissions, Enhanced Capital Allowances (ECAs)
• TELECOMS – carbon neutral providers, low green call rates and line rentals, “green minutes” with net- zero carbon footprints
• WATER – reducing water footprint, water saving technologies, water recycling technologies, saving money through water efficiencies
• INSURANCE – all types of cover from green insurance providers
• VEHICLES – leasing hybrid, electric and low emission vehicles

What is a carbon footprint?

A company’s carbon footprint is a measure of the impact a company has on the climate through releasing CO2 and other greenhouse gas emissions into the atmosphere. All of a company’s activities contribute to the size of its footprint, such as the energy used for heating, lighting, running equipment and employee travel. It also includes the energy used throughout the supply chain, including the production of raw materials, products and services that are bought and the transportation of goods.

A common misunderstanding is that it costs more to make your business greener. This is not always the case and it can be as simple as switching to carbon neutral service providers, ensuring there is no net contribution to your footprint from your supply chain. Our specialists can provide advice and practical support to help make your company more environmentally friendly.

Energy

• Green energy – sustainable, renewable, carbon neutral advice
• Reducing your carbon emissions – tips for reducing your emissions and consumption with no or low cost actions
• Enhanced Capital Allowances (ECAs) – 100% tax relief allowances on investment in energy efficient equipment

Telecoms

• Carbon neutral telecoms providers
• Low green call rates and line rentals
• “Green minutes” with net-zero carbon footprints

Water

• Reducing water footprints
• Water saving technologies
• Water recycling technologies
• Saving money through water efficiencies

Insurance

• All types of standard and specialist cover from green insurance providers

Vehicles

• Leasing hybrid, electric and low emission vehicles

Our Capabilities

We can assist businesses of all sizes, ask for a free no obligation cost review and retain 100% of the savings!

Please contact: ibdcostreduction@ibd-uk.com Tel. Michael Geduld on 01223 257777

For most companies it makes sense to lease rather than invest in outright purchases and is the obvious solution when looking for new or replacement vehicles. There are different types of leasing packages but in general the main advantage provides companies with protection against capital depreciation. Leasing also offers other benefits such as claiming back a portion of VAT, direct delivery of vehicles to your door and inclusion of road tax and maintenance (if requested).

Our specialists can offer your business help to finance whatever type of transport you need. We can help you with any of the following:

• Vehicle supply
• Leasing finance
• Flexible leasing terms
• Contract hire
• Contract purchase
• Personal leasing
• 50% VAT reclaims on monthly rentals
• Road fund licences
• Mileage contracts
• Insurance policies
• MOTs
• Warranties and maintenance
• Roadside assistance
• Delivery and collection
• Low emission vehicles

Our Capabilities

We can assist businesses of all sizes, ask for a free no obligation cost review and retain 100% of the savings!

Please contact: ibdcostreduction@ibd-uk.com Tel. Michael Geduld on 01223 257777

Some insurance premiums have come down over recent year whilst others have increased significantly. The marketplace is very competitive, you could be paying too much, you may not have the best package for your business.

Our specialist insurers will ensure your business has the right level of cover at the right price. They can quote on all like-for-like or new policies across general, niche and tailored products

The process is straight forward and simply involves collecting your renewal date and a copy of your proposal form.

We can help businesses in all sectors, including manufacturing, wholesale, leisure, property, contractors, engineering, schools and charities. Our specialists have access to all insurance services including business, vehicles, and other specialist packages.

Our Capabilities

We can assist businesses of all sizes, ask for a free no obligation cost review and retain 100% of the savings!

Please contact: ibdcostreduction@ibd-uk.com Tel. Michael Geduld on 01223 257777