FAQs About Business Sales

For many people, selling a business is one of the biggest transactions they are likely to ever undertake. Therefore, receiving the correct advice and guidance throughout what can be a lengthy and complicated process is of paramount importance. And you can be sure whoever buys your business will have a strong team in their corner.

At KBS Corporate, we can help with every aspect of a business sale. You will not need to go hunting around for providers of the different corporate services involved – whether it’s finding a buyer, tax advice, due diligence, a legal partner, negotiation or executing a deal, we are a ‘one-stop shop’ and can organise all of those requirements.

Our team of business sales experts is experienced across the full range of sectors and industries. We have completed thousands of transactions since the company was founded in 1998, enabling our directors and deal executives to accumulate a vast amount of knowledge across the business landscape.

We are the No 1-ranked mid-market business sales adviser not only in the UK but Europe as a whole and ranked second globally for deal volumes in H1 2023 (source: Refinitiv). In Refinitiv’s top 10 rankings for the UK and Europe, we were the only adviser to have increased deal volumes from H1 2022 to H1 2023.

As an integral part of the acquisition process, the buyer of your company will instruct due diligence to be carried out to verify all of the key financial and legal information. You will need to ensure the appropriate documents are available which present a full and accurate picture of the company’s economic outlook.

Everything we do is designed to ensure your expectations and objectives for the sale of your business are met, and that you receive the best possible service from us throughout the process. To find out more, please call us for a confidential discussion on 0161 258 0118.

A transaction success fee will be outlined at the point of instruction and if you also join forces with one of our panel of trusted legal service providers, their fees will be contingent so you are protected should the deal break down through no fault of yours. Once the transaction has completed, the fees payable to KBS Corporate will not deviate from the initially agreed transaction fee, meaning there will be no unwelcome surprises as fees are transparent and clearly set out from the start.

A business acquisition is a corporate transaction in which a company or individual purchases full or partial control of another entity. Organisations and professionals typically look to buy a business to enhance their market portfolio, diversify their revenue streams or strengthen their capital position.

Multiple sales channels allow you to acquire a business. Whilst you can use online portals to browse opportunities, it may be more efficient to liaise directly with a business broker to identify exactly what you are looking for. KBS Corporate represents shareholders and business owners across a multitude of national markets, ensuring we have just the right opportunity you may be looking for.

Several factors are considered when valuing a business that is for sale. Current financial performance, operational strengths and market conditions will all be considered. We work closely with shareholders to identify the key selling points of acquisition opportunities, ensuring you will be able to make an informed decision on a fair valuation.

An asset-only acquisition could be just what you need. We sell a large volume of businesses and work with shareholders with varying objectives. Acquiring intellectual property or assets within a business might not only satisfy your goals, but also those of business owners. Feel free to discuss what you are looking for with KBS Corporate and we can point you in the right direction to connect with business owners open to a flexible acquisition.

There are multiple ways to finance buying a business. Common methods of financing include funds and equity derived from the acquiring company, through to earnouts based on the post-sale performance of existing shareholders. Our business brokers have extensive knowledge of financing commercial sales, providing a smooth transaction for parties looking to buy a business.

You ideally want to acquire a company that satisfies your long-term professional goals. Whether you are looking to establish a reputation in new regions or diversify your products and services, KBS Corporate will be able to share with you opportunities that are right for you. We operate in numerous sectors to ensure you will have the chance to explore opportunities that could prove to be suitable targets.

You should carefully consider your business sale before approaching the market. You can liaise with KBS Corporate to identify your objectives and expectations, as well as align your company’s operations to satisfy what a buyer might be looking for. This could include structuring and strengthening your workforce, as well as clarifying the status of any contracts and leases held by your business.

Selling a business is a multi-stage process that requires time and patience. We will consult with you and build a relationship that will equip our business sales agents with the knowledge required to successfully sell your business. Finding the right buyer can take an extended period, but it is critical to find a buyer that fulfils all of your objectives.

The valuation of the business can be influenced both internally and externally. Buyers will consider your financial performance and operational infrastructure, and current market activity will dictate how profitable your company can be. Our business sellers have a clear understanding of existing market trends, enabling us to position your company as effectively as possible.

It is never too early to explore the sale of your business. It can be beneficial to see what type of interest your company generates in the M&A market, allowing you to understand if current market conditions will enhance the value of the business. KBS Corporate will never rush you into a sale, advising you on the most appropriate time to engage with buyers and proceed with an interested party.

Not at all! Many shareholders are interested in retaining a minority shareholding in the business and even working alongside the buyer to manage your company through its next phase of development. KBS Corporate will communicate with buyers that you are not looking to sell the entirety of your business, allowing us to engage with parties who would welcome working alongside you.

Private equity (PE) investment is not only a viable option, but it may be the ideal route for you. Shareholders across the UK engage with PE firms to facilitate further growth of the business while remaining in a leadership position. A private equity investment could provide you with the resources required to oversee further expansion personally.

There is no need to tell your staff or clients until you are comfortable with doing so. Selling a business is a confidential process and you will have full control over who KBS Corporate engages with. Any interested party who would like to enquire about your business will be required to sign a non-disclosure agreement. It is common for many shareholders to inform their employees and clients following the completion of the sale, minimising any disruption to the transaction.

Many buyers would be interested in retaining key personnel post-sale — after all, you will have played a key role in your business’s success! There are a variety of buyers and investors who would be open to discussing your role in the company following the conclusion of the sale, providing you with various options.

By operating at the forefront of the business sales market for 25 years, we have established an international network of buyers, all of whom maintain regular contact with KBS Corporate to share their acquisition plans. We share many opportunities with both UK-based and global buyers to maximise the interest in your business.

While a short handover period is a natural way to transfer ownership and allow the new owner to settle, you will be under no obligation to remain with the business for an extended time. Your departure will be negotiated before the completion of the sale, allowing you to enjoy your exit on your own terms.

Tax must be considered when selling your business. If you sell your business for a profit, you will have to pay Capital Gains Tax on anything above your tax-free allowance. K3 Tax Advisory, our sister company, has a team of specialist advisers who know how to mitigate any implications that will arise during the sale of your business.

During the process of selling your business, there will be a comprehensive due diligence and legal process that is primarily led by solicitors. Both business sellers and buyers will be represented by legal specialists, ensuring your best interests are considered throughout the transaction. KBS Corporate has established long-standing relationships with national solicitors, allowing us to put you in direct contact with trusted firms to support your sale.

There are various ways to value a business – it could be based upon multiples of profit, turnover or comparisons to previous acquisitions in similar sectors. But ultimately, it should always be borne in mind that the value is only determined by how much a buyer is prepared to pay. You should not undervalue your company, but nor should you price yourself out of the market.

When entering the process of a business sale it is strongly recommended to be clear about your goals, from the perspectives of what you want to achieve for the company, for your own future plans and also financially. Setting the right valuation at the outset will enable us to identify and nurture the most suitable buyers to generate a competitive bidding environment. We pride ourselves on going beyond historic valuations to exceed our clients’ expectations.

There are several approaches that can be applied to valuing a business. These include an asset-based approach, valuing a business on the strength of its assets and liabilities; an income approach, based on expected future cashflows; a market approach, based on the prices of comparable businesses or transactions; and a brand valuation approach, based on the company’s brand equity and reputation.

We will begin to identify ‘value drivers’ that will catch the eye of potential acquirers and spark an appetite within them to buy your business. Useful information to prepare includes current and projected future financial performance; contractual and guaranteed future income; skills and experience of management and staff; ease of integration and synergies with potential acquirers; the market position and sector in which the business operates; and intellectual property, patents and trademarks.

The overall valuation will cover all aspects of the company, e.g. physical assets, projected profits, your brand’s reputation and the prevailing strength of the industry. Asset valuation is the process of determining the value of a specific property, including stocks, options, bonds, buildings, machinery and land. The fair market value of the company’s total assets is calculated by evaluating the assets and deducting liabilities.

An intangible asset is a resource with long-term financial value to a business but is not a material object. For example, licenses, copyrights, a brand name and computer software. It can also encompass your company’s reputation, skills and knowledge, research findings and goodwill. Such assets can be incorporated within a valuation if they have been acquired for a cost and/or have an identifiable value.

Mergers and acquisitions is the term encompassing the processes whereby a business is consolidated via a financial transaction with another company. There are various ways in which this can be done, but ultimately it will result in the companies being brought under the same umbrella.

There are several ways in which mergers and acquisitions can generate growth. For example, there is bound to be a wider market reach due to the greater resources and talent base, a sharing of the managerial load and a bigger pool of contacts. This should help to not only develop a greater market share, but to increase the existing service or product offering and grow revenues aligned with a reduction in costs through shared budgets and greater purchasing power.

In addition to advising on your business sale, we can arrange the provision of a range of services which you may require to ensure the process evolves as smoothly as possible. These include tax advice, due diligence, legal services and restructuring. Call us on 0161 258 0118 for a confidential chat about the services available.

As you would imagine, there is a variety of legal documents that will underpin the process, including non-disclosure and confidentiality agreements (NDAs), tax authority certificates, exclusivity agreements and the ultimate acquisition contract. But you needn’t worry about becoming bogged down in paperwork and red tape because we can oversee all those aspects of the transaction, leaving you free to focus on ensuring your business functions to the best possible effect.

A buyout occurs when one party purchases shares in a company to acquire a controlling interest. One particular kind of buyout in which we have considerable experience is a management buyout (MBO) where the company’s most senior employees purchase its assets from the owner with the aim of growing the business and driving it forward.

Due diligence is the process in which the data of the target business will be audited on behalf of the acquirer to verify the accuracy of the financial information presented. It is an extremely important part of a transaction as it ensures that a full and accurate picture of the company’s performance and outlook has been disclosed.

If a business is owned by a single shareholder, they will need to decide at the outset of the sale process upon their desired outcome. Is it a full or partial exit from the company? Do they want to retain a minor shareholding? It could also be the case that a partnership needs to be dissolved, possibly as the result of a disagreement. At KBS Corporate, we have a long-established proven track record of delivering results that satisfy and exceed shareholders’ expectations.

The position of employees within a business sale must be managed carefully because if the workforce became aware a change of ownership was pending, it could lead to significant turbulence due to the staff feeling unsettled and concerned about what the future might hold. Confidentiality is therefore extremely important and some shareholders favour a buyer who pledges to ringfence the jobs of the existing employees.

These often centre upon competition laws, in respect of starting up a new company which directly competes with the business you have sold or precluding you from poaching its customers, employees or suppliers for a specified length of time. In the case of large companies with a dominant market share, acquisitions could result in a monopoly scenario that would attract the attention of the Office of Fair Trading – but for that to happen, the turnover threshold for the target business would have to be a minimum of £100million.

While some business sales advisers may have been experiencing a difficult time, it has certainly not been the case for KBS Corporate. That was illustrated by the fact we were the only adviser in Refinitiv’s top-10 ranked M&A advisory firms to have increased deal volumes from H1 2022 to H1 2023, while our Group advised on a highly impressive 91% more deals than any competitor in 2022.