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Buying a business

When you’re buying a business, it’s an exciting time. Get it right, and you gain revenue, customers, assets, talent and competitive ground. Whether it’s a big or small business purchase, we’re here to make sure it goes smoothly, with straightforward, expert advice.

We know how much is riding on this and we don’t take it lightly. With our team, there’s no jargon; just practical, honest support. We’re M&A advisers and a trusted partner, committed to helping you succeed. This is a big step; we’ll make sure you take it with confidence.

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Asaad Khan, Manager in PEM's Corporate Finance team

Making your business acquisition a success

From your first call, you have the space to talk through your plans, get practical advice and a clear sense of direction.

If you’re looking for a company to buy, you’ll get a carefully considered shortlist of relevant, reputable companies. We’re not a business broker; instead, we selectively find leads through our network and M&A database before qualifying them. Many of these businesses won’t be actively looking to sell; the best ones often aren’t. The right people will be approached carefully and discreetly on your behalf. We’ll have sensible conversations with owners without showing your hand too soon.

Already have a company in mind? You’ll get an honest assessment of whether they’re the right fit, with specialist advice on the process.

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Jan Ansari, Senior Analyst in PEM's Corporate Finance team

Selling a business

You’ve worked hard to make your business a success. The late nights and long meetings. The risks and investments. Seeing it through the trials and tribulations. When the time comes to sell, you deserve an exit strategy that reflects everything you put in. That means maximising the price, negotiating great deal terms and having the right people in your corner.

At a time when the stakes are high, we’re by your side for every step of the sell-side M&A process. One that rewards you and secures your company’s future. We’d love to talk to you about how our Cambridge-based business sale advisers can help.

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James Taylor, Manager in PEM's Corporate Finance team

A seamless exit strategy for business owners

No two business sales are the same. From your first call, you’ll get confidential, practical advice about your options and the M&A process. Tell us what you want, how your business works and what makes the market tick. Our multi-disciplinary team will support you, whether you’re:

Looking to market your business
Negotiating with a single buyer
Selling your company to management.

You’ll have access to our extensive UK-wide network and M&A database to identify the best opportunities. If you already have a buyer in mind, we’ll take a close look to ensure they’re the right fit. From valuation to negotiation and completion, get valuable, personalised advice to support your sale.

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Management buyout advisors

You’ve climbed the corporate ladder and helped to shape your company. So, when the chance comes to own it, that might just be the perfect next step. A management buyout (MBO) or buy-in (MBI) can get you there, turning years of expertise into genuine ownership, and offering you independence, recognition and reward in the process.

When you take over the company you’re working for, it’s essential to determine the optimal management buyout structure, funding and negotiation. Our Cambridge-based advisers work on transactions like yours every day and can structure an MBO to suit your needs.

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Expert advice throughout your MBO

Every stage of a management buyout matters; we stay with you from the first conversation to completion:

Initial consultation: tell us about your background, the business and your goals and our advisers will make suggestions about your buyout options
Defining the scope: to ensure the process runs smoothly, we agree on the level of support you need and expectations
Finding MBO finance: we help you write a business plan with financial projections, introduce you to the right funders and assess cash flow available for debt service
Negotiation: it’s strange negotiating with your boss, we act as your buffer, protecting your interests and giving you the confidence to get the deal done.

Ready to start the conversation?

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FAQs

Can you help me with raising finance to buy a business?

Can you help with negotiations?

Will you help me complete my business purchase?

From start to finish, we manage due diligence and legal work for you, right through to completion. Our goal isn’t simply to get the deal over the line. For us, success is your satisfaction and a future-proof deal. After all, that’s what our reputation’s built on.

If you’re ready to start the conversation, please get in touch for a confidential chat.

Can you help me set a price to sell my business?

How do you find buyers and negotiate a business sale?

It’s important to attract buyers without showing your hand or advertising your plans. Working with us, you won’t get a scatter-gun approach. Unlike business brokers, we personally vet and contact each company and have sensible conversations with senior teams under a confidentiality agreement.

Our team can be as involved as you like. Whether that’s leading the discussion or coaching you, we’ll arm you with facts, figures and clear goals and help assess offers.

Will you help me complete my business sale?

We love this bit; it’s when our expertise really gets to shine. You’ll have some true specialists on the job, advising on everything from commercial terms to capital gains tax – and explaining everything in practical terms.

Completion is a critical time, but if you’re still running your business, it can be stressful. We can provide project management for you, keeping the buyer on board through to controlling due diligence. You’ll have access to trusted partners for legal advice, too. Once the deal is complete, we won’t disappear; our regular check-ins will help the transition go smoothly.

What is an MBO vs an MBI?

The key difference lies in who is acquiring and running a business.

With a management buyout, the existing management team buys the company they work for; versus a management buy-in, when an external management team or individual buy into a business they’re not currently working for. You might choose an MBI if your company’s existing owner doesn’t want to sell up.

If you run a family business, a family buyout allows the company to pass it to the younger generation, while allowing the older generation to extract some business capital.

As well as giving you a once-in-a-lifetime opportunity, an MBO can be attractive to the existing owner, too. Among other reasons, they may feel happier leaving their company in the hands of a team they know and respect.

What are the funding options for a management buyout?

An MBO is flexible, and you have plenty of funding options. A leveraged MBO uses the company’s assets as collateral to secure borrowing, meaning the business itself helps finance the deal. Loan notes work differently; they’re essentially an IOU to the owner, repaid over time. You could also consider raising finance from a bank or private equity firm, depending on the size of the stake in the business. Many MBOs are funded through a combination of these.

During the MBO or MBI process, will you look at my company’s cash flow available for debt service?

Yes. The c ash flow available for debt service (CFADS) represents the cash the business has available to service debt (interest and principal repayments) after necessary operational outflows. In a management buyout, the buying management team often uses leveraged finance (debt) to fund the acquisition. Lenders and equity investors will look at CFADS to assess: