When embarking upon a company sale, the priority of most business owners will be to appoint an advisor that will deliver the highest value for their shares. What many business owners don’t realise, however, is that to ensure a fully successful transaction, they need to work with an advisor that understands SMEs, their cashflows, competitors, sector and the wider M&A market.
Having provided advice to thousands of SME owners over the past 20 years, KBS Corporate is highly experienced in all of the above. Below, we take a look at the four main attributes of a company sales advisor that are essential in ensuring a successful deal:
- Credibility in the market
The main requirement of any company owner considering a sale is to appoint a credible and experienced advisor that will manage the deal and ultimately help drive the business value to its optimum level. In order to achieve this, company owners should look for an advisor that has experience of selling businesses within their sector, turnover range, value range and region.
KBS Corporate is more than qualified in these areas. We are widely regarded as one of the UK’s leading company sales advisors, regularly topping M&A league tables and winning industry awards.
In April 2017, our holding company, K3 Capital Group plc, floated on the London Stock Exchange, and as a result, we became the only specialist UK company sales advisor to be listed. Our highly respectable status as an AIM-listed company ensures that our credibility, reputation and position as an industry leader is clear, making KBS Corporate a compelling choice for any business owner looking to sell.
- Outstanding presentational materials
To ensure success, an advisor must present the business for sale in the most attractive light possible. It is essential that an advisor creates eye-catching and informative presentational materials that will appeal to potential buyers and draw them towards the opportunity.
Here at KBS Corporate, we employ numerous marketing professionals, copywriters, and designers that consistently create comprehensive and detailed sale documents that ultimately aim to attract a wide range of bidders in order to drive the company’s value.
- In-depth buyer targeting
A crucial part of the corporate advisor’s job is to research and target potential buyers that will understand the key aspects of the target company, its growth prospects and its value. In order to fulfil this, an advisor must employ a number of skilled researchers, maintain a comprehensive database of professional contacts and be experienced in matching businesses with the ideal acquirers.
One essential aspect of this process is to target and approach buyers outside of the obvious and immediate M&A market. For example, businesses located overseas, those operating outside of the sector or those that aren’t necessarily looking to acquire are often drawn in by the opportunity, and can acknowledge and understand the worth of future potential.
- Confidentiality procedures
SME owners need to be able to trust their advisor to maintain confidentiality in the delicate and often complex process of selling their business. Business owners will want to avoid information about their deal leaking into the market, in case the news unsettles any client or supplier relationships.
Therefore, an advisor must ensure that all interested parties and potential buyers sign a Non-Disclosure Agreement (NDA) prior to receiving any detailed information about the target company. This will ensure that all commercially sensitive information is protected lawfully, and as a result, the business’ operations will remain unaffected by the news of the sale.
Meanwhile, good communication is important at every stage so that the client is always aware of progress being made. Crucially, an advisor should have the same executives working on a deal from start to finish, to maintain continuity and ensure that sensitive information is only known to a select few employees.
If you are considering the worth of your company, and wish to speak to an experienced, highly regarded advisor, KBS Corporate is well placed to advise you and lead you towards a successful solution. Please do not hestitate to get in touch with us today.