Here are some answers to the questions we receive the most about our services.
If we missed anything, please do not hesitate to contact us. We’ll be happy to help
We measure profitability by a high EBITDA ratio. This stands for ‘Earnings Before Interest, Taxes, Depreciation, and Amortization’. The average EBITDA ratio in the UK is 8.3% and varied by industry. In this video we have a look at the most profitable off-market businesses for sale through Chelsea Corporate.
Before buying a business, your due diligence should be thorough and complete. You need to understand the industry and the businesses place within it; all of the risks, both internal and external; as well as check for any fundamental issues regarding cashflow, taxation & liabilities.
Most business brokers will charge an upfront marketing fee to begin searching for a buyer and a broker commission on the sale at the other end. These fees can end up can eat into your sales price and end up costing up to 6% of the total value of the business you’re trying to sell. If you’d like to skip this step and go straight into negotiations then these simple preparatory steps can make all the difference.
If you’re preparing your business for sale, what do you need to do? What items are often overlooks by business sellers? Ensuring your accounts are up to date, contracts are secure and all taxes and litigations are settled.
The first meeting is usually held to see if there’s a good fit between the buyer and seller it’s an important time for building rapport rather than hard negotiations. If you’re an interested buyer, this is the time to show the seller that you are going to be the best person to work with when putting a deal together and managing the handover of the business.
In the first call we establish the seller’s needs and motivation for selling. During the negotiations, always ask for a favour in exchange for each concession you make. In due diligence, always deliver bad news as soon as you are aware of it and propose workable solution.
Sometimes, the perfect deal can fall through for none of the fundamental reasons, but rather due to mistakes in the M&A Process. This can be as simple as asking the wrong questions, not giving any leeway in negotiations or even talking about the deal before it has closed.