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DEALING WITH POTENTIAL BUYERS
With your house in order you will be HOW TO MAXIMISE YOUR
well prepared if you are approached by
an acquirer. If you’re actively looking REVENUE
for a buyer, it’s important that your
management team and all other Where the opportunity exists, make
shareholders have similar goals and sure all revenue is properly contracted.
expectations. This will help to determine Make sure all accrued income has been
Matthew
the type of buyer to target, how to present Matthew accounted for correctly. Buyers will
Katz, Partner,
Katz, Partner,
your business, and how to approach Corporate want the numbers clearly presented
Corporate
negotiations. Buyers might include Finance Team, to industry standard. Something to be
Finance Team,
direct competitors, overseas buyers, Buzzacott wary of is applying accounting policies
Buzzacott
financial purchasers, companies in related incorrectly to minimize tax instead
industries and wealthy individuals. Each of maximizing value. Buyers like to
will need different approaches, and your see recurring, quality revenue from
lead adviser can guide you. subscriptions. They will look at the
quality of sales. Can you demonstrate
Advice from members who have dealt with that your customers are actually
an approach is not to seem too keen but using your product or service or are
always agree to meet them. Members also they likely to cancel at the end of the
advise that you meet somewhere neutral contract? They will also look at the
to avoid speculation within your team. diversity of sales, and whether a large
Ask who will make the buying decision, try proportion is from one big customer.
to meet with them, and ask them what
they’re looking for and what they value. Partners advise
against giving strategy. For example, look at their public
If it’s a competitor or a business in a any indication of documents and press related to acquisitions.
related sector, get a decent exclusivity price expectations
as buyers will
agreement and NDA which precludes automatically cap at COMMUNICATION
them from developing something similar that price or it may When it comes to informing the wider team
or acting in your market for 12 months. put them off, so let some members who have been open have, in
Research the potential buyer with your them find their own hindsight, said they would have waited until
adviser and try to understand their valuation. the deal was done. It can distract people

THE SALE PROCESS

pre-sale period Initial Assessment Choosing Advisors Review of Alternatives Pre-Sale Grooming
sale process Prepare Information Memorandum Vendor Due Diligence Timetable

Identify Purchasers

Contact Purchasers Confidentiality Letters
Preliminary Offers Shortlist Purchasers

Due Diligence Management Presentations, Site Visits, Data Room, DD Report, Draft Contract
Final Offers Deal Structures Forms of Consideration

Chose Preferred Bidders Preferred Bidder Exclusivity Conditions
Further Due Diligence Control Information Flow Vendor DD assigned to Purchaser
Legal Contracts Warranties + Indemnities Service Contracts
Disclosure Letter
Legal Completion Public Announcements Net Asset Adjustment