Top tips for successful sale of business as Scottish market shows recovery

The mergers and acquisitions market in Scotland has shown strong signs of recovery over the past 12 months, with a significant number of trade buyers and private-equity investors looking to grow their existing business or portfolio.

With attractive prices being paid for good businesses and the availability of entrepreneurs’ relief (10% capital gains tax rate) for many business owners, now can be a very good time to sell.

If you are considering selling your business, here are some tips:

• Engage professional advisers – experienced financial and legal advisers should be appointed at the outset to structure the deal and project-manage the transaction, allowing the management team to focus on running the business and maintain a strong trading performance.
• Do your diligence on the purchaser before investing considerable time in meetings, providing information and negotiating terms. It is important to be comfortable about the purchaser’s ability to deliver what they say they will.
• Ensure information provided is accurate – purchasers will use whatever they are given as a basis for their offer. Any adverse adjustments identified during due diligence will usually lead to the initial offer being revised downwards, while any positive changes will not necessarily result in an improved offer.

For more top tips for successfully selling your business, contact your usual AAB contact.