SELLING A PROFESSIONAL SERVICES COMPANY
Professional services encompass areas such as the accountancy, financial, legal and marketing fields – and we have more than a quarter of a century’s experience of selling this type of company.
While history relates that professional services companies tend to be passed on to family members or senior employees ready to take on the responsibility of ownership, in recent times there has been an increase in M&A activity with third parties seeking to strengthen their position in the market.
We can help you with any facet of selling your professional services company, initially by discussing with you the exact objectives you wish to fulfil. Then we will establish an accurate valuation of your company, explore our vast network of potential acquirers to identify the most suitable buyer, manage the negotiating process and oversee every aspect of the sale right through to its completion.
SELLING A PROFESSIONAL SERVICES COMPANY
WHY SELL YOUR PROFESSIONAL SERVICES COMPANY?
Driven by rising investor confidence, M&A activity in the professional services sector is expected to grow in the coming years, propelling increasing demand for companies specialising in financing, investment strategy services and accounting system design.
Technological advancements mean businesses will need help updating accounting systems, while leading financial management firms have highlighted alliances with overseas companies as a step towards expanding into markets with high growth potential and achieving greater profitability.
Accounting and auditing firms can expect to continue enjoying a strong segment of the industry, not only due to Britain’s status as a financial hub but also the importance of expertise in this area intensifying as a result of greater scrutiny being imposed by regulators such as HMRC and the FCA.
VALUATION OF YOUR PROFESSIONAL SERVICES COMPANY
Establishing the correct valuation when selling your professional services company is vitally important because although you deserve an appropriate reward for the hard work you have put into the business, unrealistically pricing yourself out of the market will only deter interested parties.
In determining the valuation, your client base is an essential feature. Do you have a solid core of repeat customers who contribute to regular revenue streams? This will then influence your profitability and underpin the potential for growth.
Tangible assets also need to be factored in, the extent of which will depend on the type of field in which your business operates, while a proven ability for the company to retain high-quality, loyal staff will enhance the valuation.
HOW DO I INCREASE THE VALUE OF MY PROFESSIONAL SERVICES COMPANY?
Having a unique selling point (USP) is a major advantage when it comes to selling a professional services company, especially in relation to a specialism you know would be very difficult for a competitor to replicate.
Also, being able to display consistent, healthy revenue streams contributes significantly to an attractive financial picture for your company which will only enhance what an acquirer is prepared to pay for it.
Another key aspect of boosting the valuation of your company is to have a strong, settled workforce in place, particularly in senior roles where experienced leadership and demonstrable customer relations skills are major assets.
PREPARING TO SELL A PROFESSIONAL SERVICES COMPANY
You won’t be the first person planning to sell a professional services business and probably not the only one in your field at a given time, so how do you make yours stand out as the company of choice for prospective acquirers?
Firstly, ensure your company is fulfilling its potential in terms of the services it offers – have you explored all avenues that could increase your turnover and profitability and consequently widen your client base?
Also, utilise the scope of the digital world as broadly as possible by keeping your website and social media channels up to date with the latest developments that promote your company positively, which will help to establish a clear identity for your brand.
HOW TO SELL A PROFESSIONAL SERVICES COMPANY
Seek advice from a leading company sales expert
Put yourself in the ideal position to sell your professional services company by joining forces with an experienced adviser. At KBS, we have over 25 years of experience and we are firmly established as the UK’s No 1 mid-market company sales adviser by LSEG (London Stock Exchange Group).
Understand your objectives for selling your company
What exactly are your hopes for exiting your company? Do you want to wind down or do you need capital to fund a new business venture? Having clarity about what you want the next stage of your life to comprise will sharpen your focus to achieve your exact aims in the sale of your company.
Prepare your company to be sold
Make sure everything is shipshape in order for the company to be presented to potential acquirers, with all contractual and legislative requirements fulfilled and accounts up to date. Conducting your own due diligence is a good idea and something we can help to facilitate.
Consider all company sale options
There are several different types of company sale and we are well versed in a wide variety that may be suitable for you, depending on what you hope to achieve. We can research buyers throughout our broad network of contacts to match up the best possible fit for your company.
Confidential negotiation with acquirers
We are completely aware that full discretion needs to be applied at all times during business sale negotiations and will draw up a Non-Disclosure Agreement to be signed by interested parties, providing you with reassurance and protection of your company’s data throughout the process.
Prepare sale documents
When the structure of the transaction has been determined, a Heads of Terms will be drawn up and, once everything is finalised, the final Sale Purchase Agreement. These can be complicated documents, but our vast knowledge and expertise will ensure they adhere to all legal obligations.
I was happy, it was an easy process and KBS handled it well,
I would recommend KBS Corporate to anyone who wants to explore a business sale and is seeking sound advice.
Tim Hogarth
Founder of Hogarth Antiques Ltd
“I was happy, it was an easy process and KBS handled it well. I would recommend KBS Corporate to anyone who wants to explore a business sale and is seeking sound advice.”
KBS Corporate has been a fantastic partner for us.
Within six months of the initial teaser, the deal completed and we are all thrilled with the outcome.
Ed Johnson
CEO of PushFar
“KBS Corporate has been a fantastic partner for us. From initial research through to deal completion, George Barnes (Associate Corporate Director), Aaron (McWilliams, Senior Research Analyst) and the entire team were dedicated, hard-working, thoughtful, considerate and found several parties interested in our business.
“Within six months of the initial teaser, the deal completed and we are all thrilled with the outcome.”
EXPERT SUPPORT SELLING A PROFESSIONAL SERVICES COMPANY
With our creative, proactive approach to business sales, KBS is a one-stop shop for anyone selling a professional services company. Not only do we find a buyer and oversee the deal, we can connect you as the vendor to all the services you may require during the process, such as legal experts and tax advisers.
We possess the knowledge, contacts and apply a personal touch with a bespoke, tailored service which incorporates the latest data and technology to maximise buyer reach whilst only considering those who have the financial means, expertise and desire to acquire and grow your company.
With a 25-year history of delivering award-winning success, we are perfectly positioned to accompany you along every stage of the journey culminating in a company sale that fulfils all your aims. Contact us on 0161 258 0118 to find out more.
SALES WE HAVE COMPLETED
IN THE PROFESSIONAL SERVICES SECTOR
acquired by
acquired by
acquired by
acquired by
acquired by
acquired by
acquired by
acquired by
acquired by
acquired by
WSW Consultancy
Sector: Building Surveying and Architectural Design
Location: Hampshire
Buyer: Stiles Harold Williams
acquired by
acquired by
acquired by
acquired by
Glynwood Insurance Services
Sector: Insurance
Location: West Midlands
Buyer: Academy Insurance Services
acquired by
