Selling Your Business

Business Disposals

You only sell your business once. There is therefore only one chance to get it right. It can also be a stressful process and you still have a business to run. We lead the transaction throughout the process, allowing the vendor to focus on managing the business.

How we achieve success for our clients

1. At Mitchell Charlesworth Corporate Finance we specialise in selling businesses and achieving successful results
2. We bring focus and dedicated attention to the sale of every business
3. We identify serious potential purchasers who have the financial ability to ‘do a deal’
4. We negotiate the deal and manage the transaction through the legal process

Involved, interested and committed
We have comprehensive research facilities and contacts to enable us to identify potential trade buyers.

• Our considerable experience enables us to identify the feasibility of a Management Buy Out.

• We market the business discretely, and professionally present it to potential purchasers. We prepare a Sales Prospectus of the business, highlighting the strengths and potential opportunities

• The sale of any business is a naturally adversarial process. We seek to maximise the price for our client on

• The best possible terms, whilst the buyer wants to achieve the lowest possible price. There has to be two winners and because we lead the negotiations we shield our client from this process.

• We regard it as a key part of our work to co-ordinate all the professionals involved, and project manage the deal to completion.

Taxation

Having worked hard to build your company, you will want to maximise its sale price.

We will ensure that the business is structured correctly prior to a sale in order to minimise potential tax liabilities; in particular to take advantage of favourable capital gains tax reliefs.

The nature of the consideration received, whether in cash or securities, earn outs or on deferred terms, will have varying tax effects and influence the terms of the final deal.

The sale process generates comprehensive legal documentation associated with the disposal and this is examined in detail in order to identify any adverse hidden taxation implications.

Our role is to guide clients through the tax complexities of a disposal whether the proprietor is selling shares or assets or an interest in an unincorporated business.

Business Valuations

The valuation of any business is not simply an accounting exercise. There are factors that increase and decrease the valuation of any business. Many of these factors are commercial and market issues that are important to potential buyers and need to be recognised in most valuations.

Nor is the preparation of a business valuation an exact science.  Any business can only be valued on the basis of what a conventional trade buyer would likely be willing to pay. This is present as an indicative valuation range.

How we achieve a professionally considered valuation
Our Corporate Finance Team has many years experience of valuing businesses. Bob Gore also acts as an expert witness for legal firms on the valuation of businesses in shareholder disputes.

An independent view
Whether we are preparing a valuation of a business prior to the sale process, or for shareholders in a dispute, our method of approach is to provide a truly independent valuation.

1. We look to identify the key features that differentiate the business from its competitors
2. We make appropriate adjustments to the company’s accounts to determine maintainable profits
3. We determine the most appropriate methodology to using a multiple of profits recognising any key issues, such as non- recurring exceptional revenues or exceptional costs
4. We advise on the potential payment structure of any deal and on the key taxation issues
5. We normally present our valuation report in person to shareholders explaining the rationale, the key features and method of approach

For further information please contact Bob Gore T: 0161 817 6100  E: bob.gore@mitchellcharlesworth.co.uk or Paul McGerty T: 0151 255 2300  E:paul.mcgerty@mitchellcharlesworth.co.uk