Frequently Asked Questions

I do not want my employees or shareholders to be alarmed by my enquiries, what is your stance on confidentiality?

We understand that the prospect of selling your business is a sensitive matter as it affects a wide range of stakeholders, therefore we would like to assure you that we keep all our enquiries with the strictest confidence.

Have you sold my type of company before?

With over 17 years of experience, we most likely have. To name a few, we have worked in the following industries:

    * Wholesale & Distribution
    * Manufacturers e.g. sign manufacturers, food manufacturing
    * Metal Recycling and waste management
    * Engineering
    * Security Systems & Maintenance
    * Maintenance & Construction
    * Recruitment

What companies do you not deal with?

We welcome enquiries from companies from a wide range of industries. We are specialists in selling commercial and services companies that have a turnover in excess of £250,000. We don't deal with retail or catering businesses.

How long will it take to sell my company?

A sale of a company can typically take 6-9 months.

When buying or selling a business, how is it valued?

A business is worth what a willing buyer is prepared to pay and a willing seller is prepared to accept influenced by the risks involved and the assets transferred.

Valuation methods vary but typically purchasers are driven by return on investment, therefore, they normally use a Price Earnings ratio valuation. Put simply, the adjusted earnings of the business are calculated by stripping out all ancillary expenses; a multiple of these earnings is then applied according to the sector, perception of risk, size and desirability of the venture. The question is what multiple? This is dependent on the motivation of the buyer and where valuations become more of an art than a science. At Avondale we maximise your exposure, thereby creating a competitive market and support you through the negotiation process to deliver the best deal for your business.

Avondale offer a free valuation service, in complete confidence and without obligation. For more information, click here.

How long will it take to sell my business?

There is no simple answer to this. At Avondale we aim for a 6-8 month process. From instruction to received offers is consistently 5-6 months. However the due diligence and legal process can sometimes take longer. Changes in company’s performance, such as a loss of a client, can also impact sales time.

What should I do to prepare my business for sale?

Avondale’s Value Builder team will work closely with you to ensure that your business is shipshape and able to achieve its highest possible sale price. We will ensure that all the documentation is in place to minimise the length of time the sales process takes.

Have you sold a business in the same sector as mine, If not, why should I use Avondale to sell my company?

Avondale have a proven track record and have sold companies in almost every sector. Please see Recent Deals for examples. Our clients are also happy to provide references in the form of an open, yet confidential, conversation.

However, whilst sector experience does offer the benefit of knowing active buyers, it can often prevent an open-minded view which means that some, potential buyers may be missed. At Avondale, we never assume, each project that Avondale take on is backed by our expert research and marketing team who utilise their access to a myriad of global business databases, together with their international relationships with top dealmakers, VCs and accountants which takes us beyond trade research and ensures that all angles, not just the obvious, are covered in finding you the right deal.

How do I know that my competitors or staff will not find out about my plans?

Avondale understand that confidentiality is of paramount importance in any business transaction. You will only be contacted by agreed methods, all interested parties must complete non disclosure agreements and only you can permit the release of information.

I'm planning to buy an existing business where can I get funding advice?

There are a raft of funding options from the new government backed Enterprise Finance Guarantee Scheme (EFG), to major banks and lenders to more personalised sources such as Venture Capitalists or Business Angels .

I'm strongly considering selling my business and believe a "Heads of Agreement" is involved. Could you explain what one of these is and what it involves?

Heads of Agreement is a relatively short document (normally non-binding) which is used in the initial stages of a transaction, to record what has been agreed in principle between parties prior to entering into the formal legal process. They will normally cover key points such as; type of transaction, for example share sale or asset sale, price, deal structure, conditions and timescales. They are also a useful tool for highlighting/dissolving any problem areas prior to parties incurring significant costs. Avondale will negotiate and produce the Heads of Agreement on your behalf.

I want to increase my shareholder value want to attract more shareholders and investors to my business. What can I do to build its value and increase its appeal?

Investors want to see maximum return for their capital investment. They will invest in companies which have clear, usable, working business plans in place, outlining objectives and strategies over 3-5 years. To ensure you tick most of their boxes identify both the positive and negative areas of your company. Do you have a strong tiered staff base, are there any unexploited resources, what is your vision for the company’s growth and future, is it to potentially float on AIM in 5 yrs time? Ensure you analyse and make clear what’s on offer to investors and in turn what your own ultimate goal is.

Avondale’s Value Builder service our unique coaching & advisory service, is designed to help owners grow the value of their business; unlock its hidden potential, income, productivity, strategy and leadership. Click here for more information.