Selling a Business

Valuing your Business

Valuing a business is an art, not a science. When selling, we advise not disclosing an asking price. However, owners need to understand whether their expectations are realistic before starting the process.

Our valuations focus on the company’s maintainable earnings and net assets. This excludes any potential synergies that buyers might bring. In some cases, a net asset valuation is more appropriate in asset-heavy sectors. This approach uses the latest balance sheet, adjusted to reflect open-market values (revaluing freehold property). Then, a final adjustment for goodwill, which is often not included in the accounts.

By analysing both earnings and net asset values, we provide a sensible starting point for assessing offers.

Structuring for Sale

Preparing a business for sale is essential to achieving the best possible price. This part focuses on putting the business in the right shape before going to market.

The time available before sale largely determines what can be achieved:

Less than 1 year: Address immediate issues that could affect the sale, such as tax issues or surplus assets. Appoint advisors as early as possible when a business sale is being considered.

1–5 years: With more time, plan a structured exit. Strengthen the management team, optimise working capital, and maximise available surplus cash. Operate within the right business and tax structure and only undertake activities which are going to increase business value.

5+ years: Plan for long-term growth. Develop a strategic plan including new products, markets, or acquisitions to maximise value. We can assist with independent expert insights from our industry network.

Careful preparation, tailored to your timeframe, ensures the business is sale-ready and positioned to achieve its full potential.

Finding a Buyer

This is critical to the process of selling a company. Our approach uses various methods, including specialist databases and professional networks. This will compile a list agreed with the vendor whom we approach.

Often, vendors know the market better and can identify likely acquirers amongst current competitors, customers and suppliers.

Having prepared a quality Information Memorandum, all of the above will then be approached on a confidential basis.

Getting to Legal Completion

Having reached Heads of Terms, typically prepared between ourselves and your lawyer, we will help you with the legal process.

This will include responding to the due diligence enquiries in relation to your accounts, tax returns and legal questionnaire which will cover all aspects of your business.

We will assist in advising and negotiating the warranties and any indemnities that are included in the sale and purchase agreement.

What our clients say

“Pierce provided FDD services on behalf of the lender on our recent funding transaction. As Finance Director and the main point of contact for the assignment, I was massively impressed with their approach from start to finish.

Jimmy and Kevin came out to visit our operations and met with the management team to build their understanding of the business and our sector. Throughout the assignment, Pierce was both efficient and highly professional and delivered a high-quality report in line with the agreed timescales which fully satisfied the agreed scope. I wouldn't hesitate to work with Pierce on future FDD assignments or to recommend them to my network.”

Ben Jaffray

Finance Director

“Kevin and his team contributed to a smooth process and completion in the acquisition of new premises for our business. The team are professional and informative and handle each step with proficiency. We are more than happy to recommend Pierce Corporate Finance.”

Jonathan Wells

Chairman

“The project appointed to the Pierce Corporate Finance team was no small challenge, providing a bespoke model build for 11 sites and a growth model for up to 25 additional sites/locations but they handled it fantastically. I had a great experience working with Jimmy and built a strong working relationship. He is knowledgeable, professional and patient. No request was too much, he always provided realistic input and delivered on all deadlines. Kevin had a sensible and down-to-earth approach, was honest and focused on building a long-term business model. With their help, we were able to achieve exactly what our company wanted. Working with Pierce was a pleasure, the Corporate Finance team is our first point of contact for any future projects. Their professionalism and expertise made the entire process smooth and enjoyable. I highly recommend them.”

Jasmer Singh

Finance Director

“I would highly recommend any business to use Kevin and the Corporate Finance team. The team are easy to work with, supportive, professional, and brings both creative and analytical thinking to our business strategy.”

Lee Wallbank

Managing Director

“Given the situation we have all been placed in due to Covid, I felt it would be prudent to have additional funds available should we need them. I was introduced to Kevin and his team and can completely advocate their ability to facilitate my request above and beyond expectation.

As a team they not only communicate both processes and timelines but also a pragmatic opinion as to which was the best route forward. Congratulations to the new Board Members at Pierce in their astute decision to hire Kevin, I am sure there will be many more clients who will not only benefit form his knowledge and expertise but also enjoy the refreshing approach and dialogue during these uncertain times.”

Phillips

Cecilia Phillips, Director