CMC Partner Simon Scott provided invaluable advice and guidance to the owners of a Delicatessen Food Manufacturer, based in Oxfordshire, as he prepared them and guided them through the sale of the business.
Although the Client had attempted to sell the business previously, through a broker, they had found little success. Business brokers often trade off their ‘little black book’, a database of interested parties, and in this case the broker in question used up his book of contacts, and ran out of options.
Simon spent time with the Client in order to gain a thorough understanding of the business, the market place, and players in the industry. This is an essential piece of work that allowed him to understand which potential buyers the Client would appeal to most. It also meant that he was able to fully describe the potential of the business, key to maximizing the sale price. He then targeted both specific trade buyers as well as contacting CMC network of financial buyers and professional partners.
Four companies expressed serious interested in the Client, and Simon began negotiating the best offer. It is always beneficial to have more than one interested party when selling a business, so it was important to keep looking even after the first potential buyer had begun talks.
Not untypically, a strong offer was received from a company in a very similar market to the client. Simon carefully balanced the release of sensitive information about the Client, whilst ensuring that the buyer was serious about acquiring the client and not merely looking for “inside” information. He worked with this company to produce a detailed offer, known as a Heads of Terms, which was agreed to by both parties.
After agreeing the Heads of Terms, there were two streams of activity. Many deals can still fall apart if both of these areas aren’t dealt with efficiently.
- Due diligence: Simon had previously alerted the Client to requirements that the potential buyer would have. So the Client was well prepared for this detailed and somewhat bureaucratic process.
- Finalising the legal agreement: Simon acted as a project manager, working with the lawyers, Client and buyer to reach a successful contract signature
CMC Partners understand business. Simon’s background (as an MD and qualified accountant) meant that he was able to understand the Client’s business and its market place. The net result was a successful outcome for the Client. They achieved a purchase price at the top of their expectations.
By providing a professional, bespoke engagement with both the Client and the buyer, CMC Partner Simon Scott was able to provide knowledge, support and value to the sale of the business.
Thinking of selling a business?
CMC Partners can help you prepare your business for sale, cut through the jargon and get the best value for your business. Contact us today to arrange a confidential and obligation-free consultation.
“When selling our food business, Simon took a lot of trouble to understand our business and the market we operated in. He got us a number of very credible offers and he supported us through the entire process to a very successful closure. We were delighted with the outcome.
Director, Food Company”