Inform Magazine

T

here are a wide range of reasons why a shareholder might sell their business. They can be motivated by a change in personal circumstances, a change in interest or it could be beneficial

OWNERS HAVE TAKEN THE BUSINESS AS FAR AS THEY CAN

Sometimes the reasons for a sale can be as simple as the owners have taken the business as far as they can. Each business is unique and personal, so it can be difficult to realise that the business has reached a ceiling. This type of sale can require further investment from a private equity buyer to overcome any financial restraints. Alternatively, this type of opportunity may attract a trade buyer with more resources or experience as a bolt-on acquisition to their existing offering.

to bring in a new owner. During our 25 years of experience, we have dealt with all reasons for sale. This is why we are confident that as experienced advisers we can work with sellers’ individual circumstances to produce a positive outcome to help them achieve a sale, regardless of their motivation.

RETIREMENT

The first and probably one of the most common reasons is retirement. Many owners dedicate years of their lives to their businesses and wish to ensure their continuation once they decide to retire. This can result in a management buyout if an employee is looking to run the business but, when the time comes and there isn’t a clear successor then the company will come to market. By opting to sell the business rather than closing, the owners can realise the value they have established over the years. The funds generated by a sale enable business owners to fund their retirement plans whether that is just to maintain their quality of life or to allow them to pursue new interests and passions.

TO ACHIEVE GROWTH

A similar cause for a sale is to achieve further growth. This can be achieved by pursuing a larger trade buyer who has more knowledge of the market or resources available. Businesses can often benefit under the impetus of a new owner, who can provide a new range of skills.

CAPITALISE ON VALUE

Whatever the reason for the sale, it is vital to work with an experienced adviser to achieve the highest value possible. KBS Corporate has more than two decades of experience in advising our clients on all manner of exits, so we understand each business owners’ objectives, as well as how to source the most appropriate acquirers to meet them. in personal circumstances such as the need for capital. On the other hand, some business owners may take a purely entrepreneurial approach, who establish businesses merely to generate profit before moving on to their next venture. Finally, a sale may be motivated by the owners’ desire to capitalise on the value they have built. This type of sale could be implemented due to changes

OWNERS PURSUE DIFFERENT VENTURES

Another common reason for selling is to enable the business owner to pursue different ventures. This is often the case when the owner has a varied business portfolio and wishes to streamline their time and resource. Often, a shareholder may opt to pursue a more profitable venture which requires much more time and focus, and may look to sell the current business to an acquirer who can give it the resource it deserves.

7