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Selling A Business

The sale of your business is likely to be the single largest transaction you’ll complete in your lifetime,

(perhaps with the exception of your mortgage).

If you’ve been thinking about selling your business you might have doubts, and quite rightly so. The chances are you’ve spent years, maybe decades building up your business and that’s a lot of time, hard work and emotional commitment.

Because there’s a great deal of emotion attached to such a decision. Your business might feel like your ‘baby’, something you’ve nurtured from its very first steps right through every stage of development, through all the hiccups and the successes. So, selling your business can be a sensitive process.

But the next phase of the journey is also an exciting and liberating new step for both of you. It’s an opportunity for growth and the chance for you to gain back the freedom you enjoyed without the responsibility and worry. You’ve done the grind. Now it’s time to realise the rewards for all of their hard work.

We purchase profitable, well-managed companies that will continue business as usual and keep their name, culture and management after the acquisition. We protect the legacy of every business we buy, fiercely and with a passion, because we understand the hard work that went into building up the company to this stage.

The stages of the process, detailed in the diagram above and the descriptions below, are to give you an idea of how the process works if you haven’t sold a business before.

Selling Process Numbers 1, 2, 3, 4

Our easy step-by-step guide to selling your business

Identification
1

First Contact

2

Confidential
information

Identification
Every journey begins with the first step. Your initial enquiry, or our approach to you, is the start of a much longer process. You may decide that this isn’t the right route for you at this time or that you’d like to know a little more, without any commitment or obligation. We’ll both sign a confidentiality agreement (and NDA) so that we can exchange information securely.
Evaluation
3

A closer look

4

Let's talk

Evaluation
At this stage we’ll need to discuss your company performance in greater detail, looking at turnover and profit from the last three years. More importantly, we’ll be looking to establish a relationship based on trust. and ensuring our values, needs and wants are aligned. We use several parameters to evaluate a potential acquisition including market position, customers, competitors, main suppliers, historical data and future involvement of key employees. Our main criteria though, is that the company is profitable and preferably with a second tier of management in place.
Consultation
5

Let's meet

6

Our offer to you

Consultation
The consultation stage is primarily about ensuring the following: firstly, that the deal is win-win for both parties. This is hugely important to us. Next, we’ll discuss whether key individuals will stay involved after the acquisition. These are typically joint owners of the company, which is why contingent consideration is often part of the acquisition structure. This is key, for both parties. It gives you a glide path to exit and an incentive to stay with the company, helping it develop and grow. It also eases the stress of suddenly parting with the company you’ve developed over many years. From our perspective, we can build on your expertise and provide reassurance that we’ll continue to nurture your business. It is also important that main suppliers are in favour of the acquisition so that they too remain loyal. It is at this stage that we would make you an offer for your business.
Implementation
7

Head of Terms -
our commercial
agreement

8

Due dilligence -
a comprehensive
business appraisal

Implementation
A more in-depth, structured review of the acquired company is done when carrying out an acquisition. The main areas of focus are: Can the legacy of the business be protected and its employees looked after? Does the company offer the opportunity for enhancement and growth? Customers and suppliers – will it be possible to expand the scope of clientele and product line? Is the organisation being run in a responsible way? Is growth sustainable over the long term? Organisation – could it be made more efficient, with more focus on customers and sales? Costs, margins and turnover – is it possible to raise profitability and returns? New targets are established that are specific to the company and its conditions.
Completion
9

Sale and purchase
agreement’ - the
contract

10

Contracts
exchanged

Completion
Completion can be an unsettling time as you, your employees and our team begin to embrace this new phase. But it’s also an opportunity for a new start and it’s an exciting time for everyone. We understand that change should be handled sensitively and we’re as mindful of this as you are. Good communication is essential at this stage and we have lots of experience in leading established teams into this phase and beyond, into the next chapter.
Enhancement & Release
11

Introducing the
Fidelis Business
System

12

The next phase
of your journey

Enhancement & Release
Once the sale has completed, and after further evaluation of the business, we begin to implement the Fidelis Business System. This is a blueprint of excellence that we bring to every company we buy. We’ll work with you, in a reduced capacity, to plan and implement the enhancement your business needs to develop and grow. This is the stage in the process where you begin to enjoy the rewards for all your hard work. It's the start of a process of positive change, where you can move into the next phase of your life and enjoy freedom from the burden, responsibilities, and daily grind of running a company.

Value my business

Our business valuation tool will provide you with a rough guide to the valuation of your business. It’s an indication of what you can expect rather than an accurate valuation, but it’s a good starting point if you’re considering selling.

What’s my business worth?

Case Studies

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Swift Scaffold Ltd.

Swift Scaffold was established by a Midlands-based family man with three decades of experience in his industry.

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How you can avoid being one of the 4 out of 5 businesses that go up for sale but never sell

7 Steps To Take Before Selling Your Business

This information-packed, 10 page guide is completely free and will take you through the important steps you need to consider before selling your business including: Is now the right time? Understanding Glide Path exits, valuations and brokers. Get your copy by clicking below.
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