Buying A Business
Base52 works with individuals and management teams to support them in acquiring businesses. Our approach is hands-on and we offer support throughout the acquisition lifecycle to:
- maximise focus and time efficiency
- establish valid target selection and assessment criteria
- optimise deal structure and purchase price
- reduce risk.
Clients can elect to call on our support through any or all of the steps in the business acquisition process. We work with other professionals to cover the financial, operational and legal aspects of the proposed purchase to ensure that you have the best possible support.
Target acquisition profile
Working with the potential purchaser to assess and confirm rationale:
- challenging reasons for buying a business
- reviewing initial research undertaken to identify target market/industry
- available budget.
Identifying candidate businesses
Supporting the potential purchaser to construct a short-list of candidate businesses:
- selection criteria
- business plans
- people and structure
Initial due diligence
Confirming the potential purchaser has analysed the candidate businesses:
- completeness of business review
- challenging assumptions.
Reviewing the initial valuation process:
- assessing the indicative offer
- considering possible negotiation points
- reviewing assumptions.
Valuing the business
Considering the value of the business:
- valuation method
- reviewing all aspects of business value.
Funding the purchase
Establishing the optimum way of financing the purchase:
- payment structure
- payment timing
- conditional arrangements.
Heads of agreement
Ensuring suitability of the heads of agreement:
- period of exclusivity
- cost recovery for failure to complete
Full due diligence
Completing an audit of the target business:
- financial due diligence - accounts and tax
- commercial due diligence - business operations
- legal due diligence - contracts and liabilities.
Sale & purchase agreement
Development of the contract that includes the detailed terms and conditions of the transaction:
- price and payment terms
- arrangements for conditional payments
- rights and obligations of the parties
- restrictive covenants.
Supporting business handover and initial operation:
- completing and lodging legal documentation
- setting up accounts process
- writing new contracts
- business planning
- business advice.
Selling a business
Typically we would support our existing clients with a proposed sale. We can also work with other business owners who do not have an accountant to act for them on the sale.
Our support would cover the following areas:
- Advice on preparing your business for sale
- Advice on the structure for the sale and the tax implications
- Advice on tax reliefs including Entrepreneurs' Relief
- Capital Gains Computations
- Preparing final accounts
- Liaising with buyer's solicitor and accountant as required