Business owners losing out on value when selling due to being unprepared

Midlands' business owners could be losing out on value when selling their business due to not being prepared for unsolicited approaches, according to a leading regional accountancy firm.

Simon Chapman, a partner at Warwickshire-based Burgis & Bullock, says business owners who are not ready for an approach to sell are unlikely to receive maximum value.

Mergers and acquisitions are at record levels and figures from MarketIQ show the number of Midlands deals completed in the first nine months of 2021 was 38 per cent higher than in the same period last year.

Profitable businesses are more likely now than ever to receive a letter, email or phone call out of the blue with an offer for the company.

It comes as corporates look to position themselves for post-pandemic recovery while private equity firms have substantial funds they need to invest. 

Burgis & Bullock has partnered with corporate law firm The Wilkes Partnership and independent financial advisers Margetts Wealth to deliver a series of workshops on company sales.

Drawing on the strategies and techniques used by large companies and professional investors, the workshops give directors and shareholders tips and insights on how best to plan and prepare for a sale of their business.

Simon Chapman, said: “Large corporates and private equity firms are skilled buyers of businesses. 

“From experience they know that they can snap up a thriving enterprise for a significant discount to its true value by approaching unprepared business owners and avoiding a competitive sales process. 

“In contrast, those same private equity firms and corporates spend months or even years carefully preparing and positioning their investments to ensure they secure maximum value on a sale. 

“This results in a huge transfer of wealth from entrepreneurs and family businesses to financial investors and major corporations.

“Our workshops are attracting attendees at different stages of the sale process, from those actively preparing to those who just want to be ready for an approach.

“For business owners that have spent 10, 20, or 30 years building up a successful business, half a day learning how to make sure they get the company’s true value on a sale is a great investment.”

Burgis & Bullock has offices in Leamington Spa, Stratford-upon-Avon, Nuneaton and Rugby.

The next company sales workshop is at 8.30am on Wednesday, November 3. To register for a place contact simon.chapman@burgisbullock.com.