Business Valuation of a Company

We Think Differently, We Act Differently

Some helpful facts...

• We identify on average 230 potential acquirers for every client

• We generate, on average, 2-3 competitive offers for each client

• We achieve the best deal for you, your business and your staff

• We locate national and international potential acquirers

Many companies will tell you that they are different and that their approach is unique when, in reality, they are just like many others. Occasionally a genuinely different company comes along. We are just such a company.

Our pioneering approach to the sale of privately owned businesses has led to us becoming market leaders generating an unparalleled record of success.

Since we developed our refreshingly different approach to the sale of privately owned businesses we have consistently achieved sale prices which exceed traditional valuations and, in many case, exceeded them by huge margins.

Here are just some of the key elements of our process, which set us apart, which make our approach so comprehensive and effective.

1. Never value a business

When a business is acquired the acquirer looks to the future of the business, to what they can achieve with the business over the coming years. An acquirer therefore never buys a company’s history. Despite such an obvious and fundamental point, businesses continue to be ‘valued’ based on multiples of adjusted past profits. Essentially a value is placed on the business based on past performance, not future performance. This value is, as a result, not only flawed but capable of having a hugely negative impact on the sale price of the business.

2. Look beyond the obvious potential acquirers

Overseas and foreign potential acquirers are often overlooked in the sale process of many companies, however to do so can be an expensive mistake.

 

Our UK businesses regularly sell to overseas acquirers and even if an eventual acquirer for a business is another UK company, the fact that they were competing with international potential acquirers will have had a positive effect on the eventual sale prices.

 

Similarly, ideal potential acquirers are not necessarily competitors or even businesses within the same sector. They may well be from other sectors but are likely to be selling different products and services.

3. Proactively contact potential acquirers

It is common practice for a business to be sold using very passive methods, for example by advertising the business in a magazine or on a website or with very little effort generally.

 

A proactive approach is fundamental and vital to the successful sale of a business. Proactively contacting each potential acquirer by telephone to present the acquisition opportunity skillfully and professionally is consistently more effective than any other form of communication. It is the same process that you apply to your own products/services.

4. Generate Competition

No other factor maximises the value of your business more than having a choice of potential acquirers, competing to acquire a business. Competition not only improves the speed and terms of the sale but ensures that deadlock is never an issue in negotiations and ultimately has the most significant positive impact on the sale price. The greater the number of potential acquires competing for a business the greater the effect on the sale price.

5. Sell future potential

An acquirer never purchases a business’s past; an acquirer only purchases its future or, to be more precise, its future potential under their new ownership. With the benefit of a new acquirers skills, financial investment and customer base a business can be transformed and take a step change up in terms of performance and profitability.

 

For each business taken to market, we produce a Synergy business plan which outlines the future performance level of the business under new ownership and it is this performance which forms the basis for the sale, not the current performance.

How Does the BCMS Difference Work?

Of course, these are just elements of our successful approach.

If you would like to explore the BCMS Corporate difference for yourself and discover how our unique 5 step process can help achieve a maximised sale value for your business then please attend a free business sales seminar or alternatively arrange a free business assessment to discuss your aspirations and the potential sale of your company in complete confidence.

"The BCMS Corporate approach is the most contrarian and refreshingly different I have ever come across."

David Molian
Cranfield School of Management