Insights 22.7.20 Authors: Philip Bird, Pablo Jorge

Has COVID-19 affected your view on the future ownership of your business?

Insights 22.07.2020 Authors: Philip Bird, Pablo Jorge

COVID-19 has produced many issues and concerns for companies and their owners.

Some companies, despite unprecedented levels and types of Government support, have just not been able to survive the shutdown of activity for the last three months and have been forced to liquidate their businesses or just close their doors for good. Other companies – especially those providing essential goods and services – have thrived and benefited, although these are in the minority.

Most companies have suffered, and faced with this many business owners are contemplating the future of their businesses. How do they adapt to the new environment, or do they even want to continue to own their business?

Company sales and acquisitions are continuing, and although the shape and structure of transactions are changing to reflect the current environment, there remains good interest from both UK and international buyers to acquire across all sectors in the UK. Valuations are also holding up for the time being, but again the amounts of cash being paid on completion and those on a deferred basis is changing – earn outs are an increasing characteristic of transactions today.

Here at CBW we provide a high quality and confidential advisory service to shareholders that are contemplating exiting their business. This includes:
• Advice on valuation;
• Preparation of your business for a sale;
• Preparation of an Information Memorandum on your business;
• Introduction to, and negotiation with, prospective acquirors;
• Full project management and support through to completion of the sale of your business;
• Tax planning to ensure that you minimise your tax bill on the sale of your business; and
• Estate planning and wealth management for the proceeds from the sale of your business.

We have particular experience in advising privately owned businesses in their sale. Some of our team’s recent transactions include:

• Sale of Import Services Ltd to Xpediator plc:
• Sale of Pacer Components Ltd to Solid State plc.

If you are interested in learning more about how we can help you in these difficult times, please contact a member of our Corporate Finance team.