News (Archive)
| Saturday 28th March 2009 |
| Maximise Current Opportunities |
Despite challenging economic conditions, M&A activity continues. For buyers there are now opportunities to acquire businesses that were not previously open to approach. Whilst business owners now appreciate that by becoming part of a larger group may offer greater strength and security. Strategic acquisitions always make sense and opportunities for consolidation of fragmented sectors and buy and build strategies are now available. For sellers, the heady days of top of the range multiples of profits are in the past, however, there is often a rationale to sell into a larger group, where a wider range of skills or disciplines make it practical in today’s economic climate, as well as achieving economies of scale.
With regard to pricing and multiples of profits, the sale of 100% of the business in today’s market may not be prudent. However, there are alternatives and a phased sale is often an option that many buyers will consider.
There has never been a more important time to ensure that a business is properly groomed for both eventual sale and to take advantage of the current challenging opportunities. Approaches by acquirers could be made at any time and our team at Hoare Worth will be pleased to assist business owners in this respect.
Email june@hoareworth.com
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