Business Acquisition

Business Acquisition

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I have a client, Company based in Hereford who wish to purchase a business and merge with there current manufacturing business.

Apart from writing to Accountants asking if they have any clients interested in selling, or contacting Sales agents, does any have any good tips/suggestions?

Thanks

Luke Thomas

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By User deleted
05th Nov 2008 17:59

Use a specialist!
For buying a company, it is not usually accountants that can provide the best service for this sort of thing (no disrespect guys!). The idea of writing to accountants is a ok but a bit hit and miss, and most accountants wouldn't know what all their clients plans are anyway! I would probably look at employing a company like BCMS (www.bcmscorporate.com) that specialises in sales and purchases of companies and goes beyond the typical agents offering, or look for an expert in sales, mergers and acquisitions. Other companies also offer this type of service.

If you're client is serious about expanding, the targets may not actually be looking to sell, so I would create a brochure for your client containing the following:

1. Background information on your client, how company was formed, how long it's been going, main directors.

2. Brief profitability sumary of your client (if they are filing full accounts this is public record anyway), this shows potential targets that your clients are professionals.

3. Description of the type of company that you are looking to acquire.

4. Reasons for wanting to grow through acquisition.

5. Benefits to potential targets of selling, continuity of staff, retention of directors for handover period, cash up front or staged payments based on pre-defined criteria, growth through extra investment, etc.

I would then complete a search and identify all appropriate companies to approach, write to them, or phone them, identify those that would be willing to talk further, then send them your client information and progress talks further. The thing to remember is that although your client is looking to buy, they will also need to "sell" themselves as well.

If you'd like to have a chat about this, please feel free to give me a ring on 0845 500 5682, I may be able to either help you or point you in the right direction.

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By User deleted
05th Nov 2008 16:38

Search
Are they looking for a business whose activities aligned with their own? If so, targets might be identified amongst the clients competitors or fellow members of relevant trade bodies/associations. Yell and Google also worth trying.

The business for sale databases will only give a small percentage of potential targets.

Other firms of accountants is an interesting angle and worth trying.

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By billgilcom
05th Nov 2008 15:31

businesses for sale
on the Google Uk internet search would possibly give you hits that you and/or your client could follow up

e.g. you get http://www.business-sale.com

with a webpage showing some for sale at http://www.business-sale.com/manufacturing-businesses-for-sale.html?googleselect&gclid=CIuY-rSt3pYCFQWB1AodMD2p2A

regards and hope this helps
[email protected]
http://www.wamstaxltd.com

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