Valuing, Selling & Buying Companies
It is vital to distinguish between the Value of a business and the Price that a particular purchaser may be prepared to pay.
The key in placing a Value on a business is to establish the underlying economic performance of the business, adjusting for exceptional and non-recurring factors.
Price, on the other hand, is very much in the eye of the purchaser. Some will see the business as a stand-alone opportunity, while others may see integration options. Each potential purchaser will review the opportunity against their own objectives.
Our task in placing a Value on a business is to stay fact-based, and set the business in the context of the current economic and market conditions and reflect the prices that are being achieved for comparable businesses. This objectivity is especially necessary in today's uncertain economic conditions and with the patchy availability of acquisition finance.
Our close contact with the marketplace is vital to ensure that clients are not misled as to the realisable Value of their business.
This is our speciality - OD has specialised over the years in selling companies, especially those which have particular characteristics and which need careful analysis and presentation to potential purchasers.
In selling a business for a client, the first task is to establish its Value. Then, our task is to achieve the sale of that business and at a Price that reflects its Value. The key is to identify the serious potential purchasers.
"Standard" companies can be sold by "blanket" marketing methods, but this risks confidentiality.
Most businesses, however, are not "standard". It is our experience that the successful sale of a business for a Price that reflects or exceeds its Value will only be achieved as a result of the carefully researched selection and targeting of potential purchasers and by tailoring the approach to each of them to reflect their own circumstances. This also maintains confidentiality, the protection of which is key.
Our approach, which is based on our experience over many years, is fine-tuned and tailored for each particular assignment to reflect the needs of the client and the particular business involved.
Buying Companies & Acquisition Searches
On a regular basis, we carry out a range of different types of acquisition assignments for clients, including :-
- finding companies that meet a client's acquisition criteria
- approaching particular companies targeted by a client
- opening the doors to negotiations for a client with a specific company
- targeting offshore companies, where ownership is not clear
All of these assignments are carried out in strictest confidence and are backed by detailed research.
Our approach has been honed over many years and consistently achieves high levels of response from the business owners we approach.
Ownership transition between Stakeholders
In recent years, we have developed particular expertise in handling the sale of one shareholder's stake in a business to another shareholder.
These assignments are often between 50:50 shareholders and where one person wants to exit the business while the other wants to stay on.
The assignments have included private companies and partnerships; some have involved families and all require delicate handling to achieve fair value between the parties - who have, in general, been working together for many years.
The key is to stay fact-based. The first step is to carry out a Valuation. Our role then is to handle the negotiations between the parties, leading to Heads of Agreement and subsequently completion.
Examples from our track record of successful assignments show that we have been active and successful in a wide range of sectors and for a wide variety of clients.