Selling Your Business Sale The 6 Step Guide to a Successful

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Welcome to KBS Corporate

KBS Corporate is one of the largest independent business brokers in the UK, specialising in selling companies with a turnover of 200,000 to 20 million.

KBS Corporate has extensive knowledge and experience across a wide range of sectors, enabling us to offer sound advice on achieving the maximum value for your company.

By investing heavily in training our employees to the highest

The sectors in which KBS Corporate operate include: Construction & Building Domiciliary Care & Care Related Engineering Import and Distribution IT / Technical & Web Manufacturing Specialist / Niche & Miscellaneous Waste Management & Recycling Print / Publishing, Advertising & Media Professional / Financial & Medical Property Related / Land Recruitment & Labour Supply Retail / Wholesale & Supply Services Transport / Haulage & Motor

standard we aim to ensure that our clients receive the highest standard of customer service with professional advice on hand when required

This guide explains our proven 6 step approach to the sales process, which combined with our extensive market knowledge, can help you achieve the maximum value for your company.

Our Mission
To create competitive tension throughout the sale process to ensure that we achieve and exceed our clients ultimate business sale objectives.

Welcome

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Contents
5 6 7 8 10 11 12 14 Planning Your Sale Motivations For Sale Structuring Your Sale Finding Your Buyer What Drives the Value of Your Business? How We Have Influenced Value The 6 Steps of Our Unique Approach Practical Examples Recent KBS Corporate Sales Our Business Partners The 6 Steps in Detail Regional Contacts

Contents

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Planning Your Sale

We understand that the decision to sell your business is a difficult one that is not taken lightly, and it is made all the more difficult if you are focused on the day to day running and growing of your company.

Often, at a certain point in a companys lifecycle it becomes apparent that important choices need to be made.

The diagram below outlines these choices:

CONTINUED INVESTMENT NEW IDEAS / MANAGEMENT RESULTS IN A FRESH IMPETUS

S PL INES BUS
TH OW GR S NES BUSI

ATEAU

DECLINING BUSINESS

Without investment or fresh impetus between points A and B a business risks falling into decline. KBS Corporate has identified these parameters as the best time to consider selling your business; we can highlight the future potential of your company to a potential purchaser or investor.

Planning Your Sale

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Motivations For Sale

Taking the decision to sell your company is likely to be as a result of differing factors, each business owner has a different reason for looking to sell their business.

Below are a few of the most common reasons:

I want to enjoy the fruits of my labour

The sale of your business provides financial security for business owners who may have built their business over a number of years. The financial gain that a sale could potentially yield is a reward for many years of growing and nurturing your business.

My business needs new investment / new blood

Many business owners wish to remain actively involved in the running of their business but lack the financial muscle or skills required to fully realise the companys potential. A partial sale allows many owners to drive the business forward

Motivations For Sale

with fresh ideas or investment. I wish to explore new avenues Re-setting of personal goals is normal for many business owners. Having developed a company from its roots, some business owners relish a new challenge or become burdened with extra duties involved with running a larger organisation, often this creates the desire to sell and move on to pastures new. I want to retire / spend more time with my family Business owners dedicate their lives to growing their business leaving little time to focus on personal time. Selling a business allows business owners to address their work / life balance and create an opportunity to enjoy the fruits of their success.

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Structuring Your Sale

For a number of reasons, deals can be structured in a variety of different ways. Listed below are the typical examples of different deal structures.

Cash on Completion Cash in full on completion deals are often achieved. Buyers gain immediate ownership of the business allowing you to relinquish all ties with the business (unless a handover period or employment is agreed with the new owner). An all cash structure is ideal if you are looking at an immediate exit or retirement.

Deferred Payments This is where a percentage of the price is paid to you on a fixed basis over a period of time. The deferred part is usually a vendor loan and normally put in place to help the buyer finance the deal. It may also be paid out of future profits.

Elevator Deals These are for ambitious sellers cash-in some of your chips and keep playing. Such deals provide a mechanism to link the purchase price of a business to the potential future value of its profits. Vendors ongoing involvement is required in order to drive and elevate future profits and value. This has the potential to truly maximise value and is ideal for companies in infancy growth stage, young and ambitious sellers, entrepreneurs, de-risk, enterprise etc. The concept is exciting for those still wishing to play the game.

Performance Related Payments and Earn Outs A performance related payment structure is when an initial consideration is made on completion and then secondary performance related payments are made subject to certain performance caveats. You can maximise the deal by linking it to future growth and the buyer can hedge risks and finance the deal from future profits. An Earn Out is when the seller remains in the business in order to achieve the agreed performance criteria.

Retention Retentions are also a form of deferred payment. The idea is that the purchaser pays all the money on completion but retains a proportion, in an Escrow account held by the vendors solicitor, in lieu of certain events occurring.

Structuring Your Sale

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Finding Your Buyer

To find a range of genuine buyers, there is no substitute for diverse and extensive research. Our comprehensive Buyer Intelligence department generates potential targets through a combination of : - Desktop review - Sector expertise - Discrete enquiries to our vast network of contacts - Market news/intelligence review - Interrogation of our sector deals databases Step 2 Filtering and selection process Step 1 Potential acquirers sourced via extensive research

Targets are researched for RELEVANCE, APPETITE, FINANCIAL POSITION and DELIVERABILITY, and filtered down accordingly to a core of companies with a strong rationale

Step 3

Genuinely interested parties identified

Finding Your Buyer

and capability for buying your business. Offers sought

We think outside the box to generate a credible list of genuinely interested parties.

Step 4

Marketing Your Business

Alongside our research in some cases we will also offer additional areas of marketing and prepare a suitable online/offline marketing strategy incorporating website listings, broadsheet and trade advertising. This will ensure that we market your business to the widest possible audience and leave no stone unturned. This additional marketing is aimed at procuring the opportunistic purchaser.

Step 5

Bidder selection

Step 6 Outcome

Sale completed

Your Objectives Achieved

When identifying potential buyers, no stone is left un-turned

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Direct Competitor
Likely to already understand the Business Easier to identify Obvious synergies Confidentiality is key

Strategic / Synergistic Purchaser

Potential for complementary synergies Confidentiality less of a concern Should have management capability

Overseas Buyer
Less likely to have preconceptions of the Business Legal and cultural issues Potential for UK presence is a strong motivator Exchange rates

YOUR BUSINESS
Finding Your Buyer
09

MBO or MBI
Maintains confidentiality May avoid marketing the Business Quality of management External funding required Cash v retention of interest Reporting and controls post deal

Financial Purchaser
Historically have paid more than trade buyers Future growth needs to be demonstrable Retain an interest Warranties External funding required

Private Individual / Opportunistic

Quick decisions May bring strategic input May not have a management team May not be any synergies

Benefit from our track record of completing sales to all these types of buyers

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What Drives the Value of Your Business?

Although accountants and advisors state that there are many technical ways of valuing businesses, the reality is that value is determined by how much a buyer is prepared to pay. Experience from our deals tells us that different buyers are prepared to pay very different prices for the same business often with a range between the lowest and highest bid.

Factors affecting value

In our experience the key factors that influence the value placed on the business are:

What Drives The Value Of Your Bsuiness

1 Quality/loyalty of customer base 2 Opportunity for profitable growth 3 Sustainability of earnings/quality of profits 4 Strength of brands/Intellectual Property Rights 5 Skills of management/staff

6 Ease of integration/synergies with the purchasers business 7 Proven track record 8 Positive market demographics/opportunity 9 Defensible intellectual property 10 Capital/working capital requirement

We identify and present the value drivers of your business

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How We Have Influenced Value

By guiding clients through this Six Step Process we are often able to significantly over achieve against your price expectations, evidenced in the 7 transactions below:

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10 Actual Value Achieved 9 Expected Value/Initial Offer 8

An average uplift of over 81% across these transactions was achieved through applying the principles of the 6 Step Sales Process

0 CONSTRUCTION HEALTH IT RETAIL BUSINESS SERVICES WHOLESALE & DISTRIBUTION INDUSTRIAL

Profit Multiples Achieved

SECTOR

x7

x5

x6

x17

x10

x8

x9

How We Have Influenced Value

VALUE (m)

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The 6 Steps of the Sales Process

Our extensive experience of selling businesses has enabled us to really understand what is key to a successful transaction and value maximisation. Our 6 step Sales Process ensures the sale of your business is handled with professionalism, attention to detail, and is focused on delivering the best possible outcome for you.

Step One

Understanding the Value Drivers

Step Two

Presenting the Opportunity

Step Three

Buyer Intelligence and Marketing

In order to maximise your value we must first fully understand your business and objectives:

The 6 Steps Of The Sales Process

WHAT WE DO

In depth meeting and fact find Appraise and evaluate your business Understand the key value drivers Discuss deal structures and your objectives Agreement reached on confidentiality and non disclosure of information

The Information Memorandum is our key selling document and must present all relevant financial and business details, concentrating on key benefits to the buyer. Detailed financial and technical information gathering Draft Information memorandum prepared for your approval Feedback and input discussed

In order to maximise value we must present the opportunity to a diverse, extensive and qualified range of potential acquirers. Buyer list created by research team Input and authority gained to approach potential acquirers Project commenced to contact the KBS Corporate database of registered buyers Opportunity circulated amongst an extensive list of professional contacts Marketing and advertising campaign discussed, agreed and implemented

OUTPUTS

Formal instructions received and agreement reached on project brief and objectives

Detailed Information Memorandum prepared and ready to present to potential acquirers

Most suitable acquirers identified, filtered and approached

Our 6 Step Approach Sales Process maximises your value

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The 6 Steps of the Sales Process

Step Four

Buyer Meetings and Offers

Step Five

Bidder Selection

Step Six

Completing the Deal

Having identified multiple interested parties we aim to create bidder tension and a competitive process.

With final offers in a carefully considered decision must be made based upon: Price and deal structure Ongoing involvement Likely impact upon staff Deliverability of the deal Suitable legal, accountancy and taxation expertise introduced by KBS Corporate as required

Our aim is to maintain active management of the completion timetable throughout due diligence and the legal process. Agree, monitor and project manage timetables Fully liase with all parties throughout the final stages Ensure momentum is not lost

WHAT WE DO

Advice and guidance provided prior to buyer meetings Detailed offers sought from seriously interested parties All offers and negotiations handled on your behalf by our deal executives Competitive tension maintained throughout the process

Formal offers received

Details of the written offer are formalised in the Heads of Terms

Sale Completed

Our 6 Step Approach Sales Process maximises your value

The 6 Steps Of The Sales Process

OUTPUTS

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Practical Examples
Case Study 1 : Business Services Business Expectation 5m Turnover 5m, profit 1.1m 2 equal shareholder directors involved in the business wanting to get 2.5m each for a full exit c.30 buyers including trade and financial purchasers researched and contacted Our Added Value We advised that the 6 Step Sales Process would maximise shareholder value Early meetings with the shareholders helped us to identify specific gaps in the management team which we were able to help fill

Step 1

Step 2

Our Buyer Intelligence department had identified this specific sector as fragmented with opportunity for consolidation Financial institutions were targetted as the most likely buyer-type to benefit from the potential consolidation State of the art Information Memoranda identified the business as being at the forefront of its sector in terms of customer service and sales process Contracted revenue growth allowed for value enhancing run-rate profitability to be calculated Vendor financial, commercial and legal due diligence reports were delivered to selected parties in advance of outline offers Key commercial and legal points were negotiated with the preferred parties in advance of selecting winning bid Purchasers were closely vetted to assess the best cultural fit with management team

Practical Examples

Step 3

24 Information Memoranda issued

Step 4

6 Outline offers

Step 5

4 Final bids

Step 6 Outcome

1 Sale

28 days from signing of Heads of Terms to completion with no variations to the agreed deal

Partial sale valuing business at 10.8m (9.8 x operating profits)

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Practical Examples
Case Study 2: Construction Company Expectation 4m Our Added Value

Step 1

Turnover 15m, Profit 800K 4 equal shareholder directors all involved in the business, wanting to get 1m each and a full exit. Had already received an approach

We advised that the 6 Step Sales Process would result in a better value for the shareholders rather than pursuing one interested buyer in isolation

Step 2

c.150 buyers including overseas and financial purchasers researched and contacted

Focused on targeting complementary suppliers of the companys customers and international businesses as the sector in the UK was quite niche and fragmented

Step 4

3 Outline offers

Detailed areas negotiated including the conditions surrounding, and timing of deferred consideration, future vendor roles Due to the contracting nature of the business, margin information was highly sensitive and was only divulged when absolutely necessary The offers sourced through the 6 Step Sales Process were too strong for the original interested party to match, and they fell away from the process at this stage

Step 5 Step 6

2 Final bids 1 Sale

Outcome

Sale 7m (8.75 x operating profits)

Practical Examples

Step 3

22 Information Memoranda issued

Focused on buyer rationale: - Blue-chip clients - Market opportunity - Consolidation opportunity and cost savings - Calibre of non-vendor management

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Practical Examples
Case Study 3: Importing & Distribution Company Expectation 3m Turnover 8m, Profit 1m Key shareholders including Financial Shareholder looking to exit c.140 buyers including overseas and financial purchasers researched and contacted Our Added Value We advised that the 6 Step Sales Process would maximise shareholder value. Explored expectations of majority shareholder and the two incumbent private equity institutions

Step 1

Step 2

Search and selection rationale discussed with shareholders Use of sector and buyer intelligence with in-depth research on key targets Focus on targeting trade buyers both UK and overseas and private equity institutions with media sector Information Memoranda identified key value added features: - potential synergy benefits to trade purchasers - opportunities of rolling out company specific selling techniques into other portfolio companies - calibre of management team Coaching of management team and assistance with management presentations

Practical Examples

Step 3

63 Information Memoranda issued

Step 4

5 Outline offers

Delivered vendor due diligence reports to select parties Negotiated completion mechanism to help increase the speed of execution

Step 5

2 Final bids

Deliverability of deal structures assessed Purchasers vetted to align management styles and deliverability Vendor protection through negotiation of warranties in Sale Purchase Agreement Completion mechanism prevented value leakage post transaction

Step 6

1 Sale

Outcome

Sale 4.5m (4.5 x operating profits)

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Practical Examples
Case Study 4 : Transport Business Expectation 800k Our Added Value Our initial consultation of the business helped us to identify that our 6 step sale process could optimize buyers by looking beyond the obvious strategic and trade buyers

Step 1

Turnover 1m, profit 200k Husband and wife shareholders looking to retire

Step 2

c.86 buyers including trade and financial purchasers researched and contacted

Our buyer intelligence department carried out extensive research and approached competitors, who could take advantage of synergy benefits and complimentary businesses, who can take advantage of economies of scale

Step 4

2 Outline offers

Outline offers were collected in writing and our highly skilled negotiators helped to identify the quality of offers, advising the vendors of this Key commercial and legal points were negotiated in advance of selecting the final bids

Step 5

2 Final bids

Step 6 Outcome

1 Sale

Completion took place and the vendors were happy with a full exit and left to enjoy their retirement

Actual sale valuing business at 1m (5 x operating profits)

Practical Examples

Step 3

59 Information Memoranda issued

Our market leading Information Memorandum helped to identify key Uniques Selling Points of the company. The IM also detailed a full financial analysis and identified areas of growth that could be explored

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Recent KBS Corporate Sales

Lollipop Clothing Ltd

Leicester Ceiling Supplies Ltd

Civil engineering & public work contractors T/O: 10million year end 2004 Order book value in excess of 25million Price: undisclosed Meetings & events management T/O: 4.1million Asking Price: 1.5million Dry lining, suspended ceiling & partitioning East Midlands T/O: 2million Adj Net: 250,000 Price: 1.5million

Regionport
Haulage company T/O 1.01million Price: undisclosed

Clothing import and distribution company London T/O: 5.3million NP: 447,000 Price: 5million

Group Limited
Cleaning/security business South East T/O: 8.8million Asking Price: 5million
Established domestic service franchise system with 180+ franchises

CPS

Sisson & French Limited

Civil & structural engineering consultancy South Wales Adj Net: 447,000 Price: undisclosed Road haulage T/O 500,000 Price: undisclosed

Amorica
Cookware shop & internet tetailer T/O 800,000 Price: undisclosed

Recent Sales

T/O: 1million Adj Net: 550,000 Price: 3.5million

Staniforth
40 self-contained mixed use units South Sheffield - Close to M1 Rental income: 150,000 Freehold price: 2.3million Modern methods of construction (MMC) Capacity up to: 10million Current profits c. 425,000 Price: undisclosed Corporate telecoms solutions provider T/O 955,000 Adj net 250,000 30% year on year growth Price undisclosed

Tank Cleaning Services Ltd

Hazardous waste transfer & treatment T/O 900,000 Price: 1.45 million

Coating company T/O 905,983 Price: undisclosed

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Recent KBS Corporate Sales

Centurion Site Services Ltd
Traffic management systems T/O 1.58 million Price: 975,000 Bathroom products manufacturer Yorkshire T/O: 3.5million Year end 2005 ANP: 700,000 Price: undisclosed

Fenland Flat Roofing Ltd

Specialist roofing contractor T/O 565,000 GP 196,000 Price: 5.5million

Clarks Farm
Freehold development opportunity Price: 4million Import & distribution of camping and caravan equipment Price: 4.6million

Mad Dog Castings Ltd

Castings agency T/O 3.4 million Price: undisclosed

KMD Shellfish Ltd

Specialist shellfish wholesaler T/O 600,000 Price: undisclosed Sale of caravans, motorhomes & accessories Price: 1.1million Coach hire Price: 1million Door manufacturer Price: 600,000

A & E Estates Ltd

Estate agency & mortgage broker T/O 515,000 Price: undisclosed Logistical & engineering recruitment specialists T/O 1.4 million Price: undisclosed

CSM Electronics Ltd

Electronics manufacturer T/O: 4million NP 550,000 Price: undisclosed

Apollo Protection Ltd

Security & protection services T/O 1.1 million Price: undisclosed Fire & security T/O 1.5million GP 40% Price: undisclosed

Recent Sales

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Our Business Partners

Royal Bank of Scotland, as a business relationship bank, aims to bring a seamless one bank service to all its customers, RBS business areas work with each other, providing the right mix of expertise to deliver optimal solutions to your business. Every customer is provided with a dedicated Relationship Manager, offering the financial expertise and flexible thinking needed to make their business succeed.

NatWest, truly appreciate the importance of being an integral part of your business, which is why every business customer has a dedicated Business Relationship Manager. As communication is paramount if business opportunities are to be maximised, our Business Relationship Managers can be contacted via direct telephone landline, mobile or email; giving you the comfort of knowing you can make contact as and when you need them.

Our Business Partners

Acorn Commercial finance are industry leaders in helping people secure the business of their dreams. The specialist team at Acorn are widely recognised as having fantastic contacts within the commercial divisions of high street banks as well as strong relationships with a number of specialist lenders. The experience within the organisation means that working with Acorn goes beyond just securing the right finance package, they can also assist you in choosing the right kind of enterprise as well as providing expert guidance on getting the best from your business. Because Acorn are independent, they only ever give you honest, impartial advice.

Cattles Invoice Finance is one of the leading providers of financial solutions for small and medium sized businesses in the UK. We work alongside you to find one-off or tailor-made solutions to suit you and your needs. Our services include, invoice Discounting both confidential and disclosed and Invoice Financing.

We are here to help clients achieve their goals

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The 6 Steps in Detail Step 1 Understanding the Value Drivers

We believe that you cannot maximise the value of a business without fully understanding it and its owners objectives. That is why the first step is designed to get straight into the detail of what makes it tick and what is its potential for the future. In-depth Meeting A Corporate Director or Regional Manager will meet with you to discuss your objectives and to provide a financial appraisal of the business. The initial meeting will allow us to: Understand your objectives: Knowing what is most important to you will help the transaction process. As well as the best price, you will need to consider other factors including: Do you want a complete break or some ongoing involvement? How important is a good home for your business? How quickly do you want to sell? Information gathering An understanding of how your business is operated will allow us to recognise the key drivers of value within your business and how we can actively sell them to potential purchasers. Understanding Strengths and Weaknesses Honesty is the best policy. If we know your problems and concerns for the business, we can address these and ensure they do not impact on value. Confidentiality We understand that some facts and figures on your business may be highly confidential and therefore we manage the dissemination of information to purchasers, leaving sensitive aspects to later in the transaction. For further security we will not approach anyone that you have not agreed to, and any purchaser who requests a copy of the Information Memorandum will have to first sign a confidentiality agreement.

Value Drivers

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Step 2 Presenting the Opportunity

First impressions count. This is as true for a potential buyer as for any other situation. That is why we make sure that the details are right, in both written and face-toface communications. Information memorandum We will prepare an Information memorandum. A professionally written and presented document containing sufficient information to sell the opportunity and allow buyers to formulate their interest in your business. It will contain a summary of the following (where applicable) Overview of the business activities Future growth opportunities Competitive advantages and differentiating factors Financial profile (both historic and projected) Company structure and ownership Sales and marketing information Management skills and achievements Staff structure Associations and accreditations Property and premises details

Presenting The Opportunity

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Step 3 Buyer Intelligence and Marketing

Our job is to seek out special purchasers, those for whom the acquisition of your business would provide a synergistic or strategic benefit. We look beyond the obvious (your direct competitors) to complementary markets, international and overseas players, and also financial purchasers to maximise the chances of multiple offers. Our strategy is targeted but diverse, in that we only talk to potential buyers who should have a genuine interest in acquiring your business. Detailed Research In our meeting with you, and subsequently, we will brainstorm where the most likely purchasers may come from. Our Buyer Intelligence team draws on both its existing knowledge and extensive research capabilities to investigate these targets in detail, creating a profile of buyers, their motivations, financial strength and appetite for acquisition. Our research encapsulates: Market activity and recent transactions in related sectors Detailed sector research including competitors, suppliers, customers, related products and markets Detailed company research Sector news and current issues Professional Contacts We have a large and diverse contact database, which we will farm to generate further market intelligence to support or challenge our own understanding as well as providing additional routes to potential buyers. Initial Contact Your deal executive will make contact with all potential buyers and the Opportunity Summary will be used to assess their level of interest. This weeds out any time wasters and focuses attention on genuinely interested parties. Marketing and advertising campaign We will discuss, agree and implement a focused campaign of both online and offline advertising in order to maximise the interest in your business. We will place your business on selected websites and in relevant publications in order to target the opportunistic buyer. (Where applicable)

Buyer Intelligence and Marketing

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Step 4 Buyer Meetings and Offers

We will employ a range of strategies and techniques to ensure that the bidders make the best offer possible. We will discuss tactics with you appropriate for each circumstance, but will include a combination of the following: It is important to prepare thoroughly for all meetings. We will discuss with you how to get the right messages across and how to control the meetings. Key considerations for each meeting include: The motives of the buyer for the acquisition Developing trust and rapport How to focus on promoting the business, appropriate to the type of purchaser Where to meet venue preparation (especially if on site) When should you discuss (or not discuss) value What do you want to know about the purchasers intentions ( e.g with management, relocating , etc.)

Buyer Meetings and Offers

Fixing the Timetable By being clear with what is expected and by when, we are able to retain control over the process and take power away from the buyer. It also means that the deal is run at the pace of the quickest and most attentive buyer not the slowest, injecting a sense of urgency and competition. Competitive Tension It is unlikely that bidders will ever know how many other bids exist or the extent of the other bids, as our 6 step Sales Process is designed to create a competitive situation. Detailed Bids Prescriptive bidding details will be requested, outlining other bid criteria as well as price. These will include: Detailed structure of the deal How the deal will be funded What approvals are required Stance on key legal issues (e.g. warranties) Intentions for the business (e.g. will it be relocated, will staff be retained?) Role for the vendors, status, remuneration, etc

This approach facilitates comparison of offers and allows each key point to be negotiated separately. Information Flow Rather than issue further information en masse, it is given out in small chunks and in return for information from the buyer. This helps us to build a better picture of the buyers real intentions, and the benefits of the deal. More knowledge means a better prepared negotiation.

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Step 5 Bidder Selection

It is highly unlikely that all offers will look exactly the same and therefore effective comparison is not straight forward. We will help you to understand the differences between the offers and the potential impact of choosing one party over another. Factors may include: Overall Price The most emotive factor, but often the highest price is not the best offer for you and achieving your objectives. Deal Structure How does the deal structure impact on you now and in the future: How much cash day one? Are there retention accounts? Is there an upside for over-performance? What is the nature of any deferred payments (e.g. are they secured and if so how)? Is future consideration fixed or dependent on future performance? What are the tax consequences?

Timescales How quickly can each party complete and what level of due diligence is required? Who are their advisors and lawyers and do they need additional approvals? Intentions Do the buyers plans for the business accord with your own wishes how might this impact on the future for your staff? Empathy Could you work with the buyer post transaction, and what impact may this have on any deferred or contingent consideration? Deliverability One deal that looks better on paper may not be as deliverable as another (e.g. may need to raise external finance). This is possibly the most important factor in choosing the buyer. Legals We can help with the appointment of a corporate lawyer to draft the legal documents on your behalf, as well as assessing, explaining and helping with negotiations on any commercial points.

Bidder Selection

Ongoing Involvement Are you required to stay in the business and if so, in what capacity and for how long? Are you to be remunerated?

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Step 6 Completion
A deal is now agreed in principle and the buyer will usually be afforded a period of exclusivity to undertake the necessary validation of the business as presented to them, and to complete the legal agreements. This process is likely to take a number of weeks, but if managed effectively it can be relatively straightforward. We do this in a number of ways: Project Management There are a number of parties with differing objectives to the transaction; we set out a clear timetable and completion plan that everyone is advised of, and monitor and drive the delivery of milestones against this timetable. This fosters ownership and accountability of the delivery of the milestones. Such parties include: You The buyer Due diligence providers The buyers financial advisors At least two sets of lawyers Any of your staff who need to be brought into the loop to facilitate completion (e.g. Financial Controller)

Due Diligence We help you to produce any information requested by the buyers accountants, and ensure that it is presented in a consistent and constructive way, as we understand how the process works and the drivers behind such requests. Managing Bottlenecks In almost all deals, issues arise that are not core to the business but which need resolving (e.g. property, insurance, IT issues). Our experience enables us to resolve these as quickly as possible and maintain momentum. Act as a Buffer The process can be a stressful and emotional rollercoaster for both buyer and seller and tempers can become frayed, potentially damaging relationships. We can act as a buffer to keep things on an even keel and help raise issues in a constructive and impartial way.

Completion

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Additional Information
This guide outlines the basic process that we follow when we are instructed by a business owner to sell their business. We are certain that you will have additional questions relating specifically to your business. As we are experienced in a wide range of sectors we would be happy to discuss your circumstances in a more personal, yet confidential and obligation free manner. Please use your regional contact numbers to speak to an experienced advisor:
North West: 01204 465888 North East: 0191 230 5333 Yorkshire: 0113 250 5050 Midlands: 0121 422 0222 South West: 0117 922 0777 London/South East: 0207 584 5841 Wales: 01978 266655 Scotland: 0131 228 8777 East Anglia: 01603 424252

You can visit our website for more information on the benefits of instructing KBS Corporate to sell your business. Here you can sign up to our regular newsletter which identifies recent sales, sector news and much more.

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Regional Contacts

KNIGHTSBRIDGE HOUSE FOLDS POINT FOLDS ROAD BOLTON BL1 2RZ TEL: 01204 465 888 FAX: 01204 465 999