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Questions
and Answers
I
am considering selling but need to know more?
Planning
and timing are key. An old adage says, "The best time to sell
is when you don't have to". However ideally purchasers want
to see room for growth based on an historic profit - sales curve.
Even in today's uncertain markets there are still plenty of buyers
and fair prices to be obtained. Talk to Diverco about all the implications
at no cost or obligation.
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What are the different factors involved in selling
my company?
It
is important to ensure total confidentially and to tell a very minimum
number of people. Obviously your company broker and accountant and
co-directors but definitely not your staff, workforce, customers,
suppliers and competition! The golden rule is to say absolutely
nothing to anyone until you have something positive to announce.
See Diverco article on "Matters To Be Addressed".
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Can you offer purchase advice?
Whilst
our role is with the Vendor, but we can be helpful to purchasers
by putting them in touch with established banking sources and advisory
firms.
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How long does it take to sell?
The
process of sale is often longer than one would wish, but one must
allow up to a year for all the processes of meetings, offers, financial
due diligence and legals.
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What information do you need from me?
Initially
latest financials, business plan and any company product or services
literature are helpful, but a face to face meeting is essential
on a non obligatory cost basis to get a proper feel for the culture
of the business.
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How do you stop competition, customers, suppliers
and staff finding out about my proposed sale?
Diverco
has proven systems in place to ensure no one finds out and most
discussions are held initially off site with previously cleared
purchasers and following detailed confidentially undertakings being
signed.
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How do you value a company?
The
value of a company covers a number of factors, including maintainable
future profits, market/customer base, ongoing quality of management
etc. But probably the key is getting the right commercial fit and
establishing the "need" factor from a purchasers standpoint.
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Are you an independent broker?
Diverco
is one of the leading independent brokerage firms with no hidden
agendas and established for over 30 years.
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What are the tax implications when selling?
Recent
taper relief helps the sale process and the key issue is trying
to ensure as much money is retained free of tax. It is not always
what one initially gets that matters, but what one keeps net of
tax.
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Are you linked to any other organisations?
Diverco
is strictly independent but has excellent contacts within the banking,
accounting, pension, tax and legal fraternity.
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What are the advantages of using Diverco?
Diverco
has nationwide coverage with experienced Regional Directors. Above
all we are a private company and can relate to ownership issues.
Over 30 years experience also brings its benefits.
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What areas and sectors do you cover?
Experience
in all sectors of activity with coverage throughout the whole of
the UK and Ireland.
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What do you charge?
We
are not a consultancy so do not clock hours. We are a result-based
business and charge a standard brokerage scale-reducing fee based
upon the final value obtained.
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I do not need a broker to sell my company. I
can do it myself.
Some
people do try to sell their companies themselves, but invariably
this does not work, as confidentiality cannot be protected and importantly
connections with serious purchasers are not known. Most vendors
also do not have a feel for the market value of their company.
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How long has Diverco been established?
Diverco
was established thirty-four years ago in 1968 by the present shareholders
and Directors who had gained their experience some years previously
within the M&A sector.
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How are meetings managed?
The
people factor is crucial and all meetings are attended and managed
by a senior Director, with a view to obtaining an offer and subsequently
organising and controlling the sale process.
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What size companies do you deal with?
There
is really no upper limit to the size of company within the SME market
place served.
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Can Diverco help with funding?
Diverco
has good independent funding connections to assist purchasers.
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I am not looking to sell now but in the distant
future, when is the best time to contact Diverco?
It is never too early to start the planning process and this is
very much part of the overall Diverco service, and we have many
medium term clients who we continue to help/advise until the time
is right to sell.
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How do I find out more and what is the next
step?
A
phone call or letter is all that is required to arrange an informal
private meeting on or off premises. Total discretion and confidentially
is guaranteed and there is no charge.
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