There will come a time when you need to think about the next steps for you and your business. Whether this is influenced by a personal desire to take a step back, or the market making it a prime time to sell, you’ll want to know how to achieve the best possible exit.
You may have navigated your way through successful growth and expansion and be ready to exit through sale, management buy-out or stock market flotation. Or you may want to keep your business in the family and carry out succession planning for a generational handover. Whichever route you choose, handing over your company can be difficult.
Avonglen will help you understand how your business will be viewed from an external perspective and will assist in the preparation your business for the most appropriate exit/handover strategy.
We have worked with several family-owned businesses that have undergone generational change. In our experience, handing a business over from one generation to another is a surprisingly difficult process. The older generation can find it difficult to let go, whilst the younger generation can struggle to make their mark, when they have the previous Chief Executive sitting round the board room table. Tough conversations are often avoided in a family situation.
An experienced external advisor can be very helpful in this process to provide an interface between the generations, to provide guidance to the next generation without being seen as the ‘critical parent’.
We’ll support you to look past the emotional decisions and come up with a plan that will work for everyone, including considerations of equity structure, tax planning and balancing the income and wealth of both generations
Selling your business to your existing management team has many benefits, not least of which is that they will have in-depth knowledge of the business already, an emotional attachment and a desire to maintain (or even exceed) its current success.
Whether you are the management team looking to buy or the proprietor looking to sell, we can assist in the preparation and delivery of the process; from preparing the business to advising on valuation and funding options.
We at Avonglen have bought and sold many businesses as part of the incumbent management team. We are familiar with the process and know how to prepare a business for sale in order to achieve the best possible outcome whether you are looking to maximise the sale price or ensure the long-term continuation of the business you have built.
We can help you select the right corporate finance and legal advisors. We will assist you throughout the process to ensure that all of the materials required during the due diligence process are available and provided promptly. We’ll be by your side when that crunch negotiating point comes and, in our experience, there always is one.
If you’re an ambitious business looking to grow, an initial public offering (IPO) could support you in raising the capital you need to expand, but it’s a daunting process, and is both time-consuming and complex.
We have led the listing of a company on the main market of the London Stock Exchange so we can offer advice from a position of knowledge and experience. However, we would only recommend it in exceptional circumstances.