5 minutes read Following the widely anticipated increase in Capital Gains Tax (“CGT”) announced in last month’s budget (24%), our team has already seen a huge surge in enquiries from clients seeking alternative exit structuring options for future business sale transactions of their family firm. Questions around Inheritance Tax (“IHT”) are also growing. Many business owners…
15 minutes read As companies seek ways to adapt to an evolving social and economic landscape, traditional business models of ownership and operation are being re-evaluated. In light of ongoing uncertainty with the new tax regimes, business owners face increasing pressure to future-proof their companies. The Employee Ownership Trust (EOT) has emerged as an attractive option…
4 minutes read Many business owners are now turning to Employee Ownership Trusts (EOTs) as a more attractive exit strategy. Since their introduction in 2014, EOTs have offered appealing tax benefits, including a 0% capital gains tax for owners transferring a controlling stake. This advantage is even more pronounced following yesterday’s budget, which raised Capital Gains…
4 minutes read With the new budget just released, clients are understandably already questioning its impact. Unfortunately, for many, the response is probably one of disappointment or even frustration as overall there is a £40bn hike in taxes, with a significant proportion of funding falling on the shoulders of businesses. Key Budget changes affecting business owners …
5 minutes read Many of you may be familiar with Michael Porter’s famous work of the same title, on understanding business models more effectively. Porter’s book remains relevant and in 2016, our Chairman Kevin Uphill published “Creating Competitive Advantage in Dynamic Markets”, to address the question of how you stay ahead with your business model and…
12 minutes read There are still some business sales where the full consideration is paid on completion and in cash, particularly in situations where competition to acquire the company has been intense and the asset has been well prepared for an exit. However, in private company acquisitions, we are increasingly seeing ‘deferred or performance-related payment’ deal…
5 minutes read Capitalism is facing challenges, and Employee Ownership is part of the solution. Productivity in the West has stagnated and economic growth for most Western economies has slowed due to aging populations and the increased state burden of associated social costs. Additionally, consumerism, a cornerstone of capitalism, is under scrutiny due to its environmental…
10 minutes read The shadow chancellor is being lobbied heavily to increase Capital Gains Tax (“CGT”). Under the current system, profits from the sale of second homes or shares in businesses are taxed at a much lower rate than wages. For some, the prospect of a CGT increase is a driver for sale and for others,…
5 minutes read Many business owners planning their exit or retirement strategy may be attracted to the idea of transferring ownership to the employees via an EOT. However, for the transaction to take place the EOT needs to have sufficient funds to cover the purchase cost. There are three main routes to funding the Employee Ownership…
6 minutes read Dynamic markets dramatically threaten business models. Evolution may be too slow and so many businesses are turning to revolution as CEOs of larger and mid-tier companies increasingly turn to acquisitions of even small businesses, to satisfy both their market and future customer needs. In a recent PWC survey, 45% of CEOs believed that…
11.5 minutes read Contemporary management theory claims that the primary aim of a business is to generate profit, and this is linked to maximising shareholder value and returns. However, this view overlooks the interests of a diverse array of stakeholders beyond the shareholders, such as society, employees, and creditors. Ethical and social governance principles advocate…
4 minutes read In today’s climate of economic uncertainty and political turmoil, it is easy to succumb to pessimism. Every business encounters obstacles but dwelling on worries can exacerbate issues and lead to burnout. While conventional wisdom advises doubling down and pushing harder in tough times, what if you and your team are already stretched thin?…
3 minutes read Capital Gains Tax (CGT) We had cautiously hoped that Capital Gains Tax (CGT) for sellers of businesses would remain untouched following the recent adjustments that significantly reduced Capital Gain Tax annual personal allowances. However, Labour is now advocating an increase in Capital Gains Tax to 45%, specifically targeting private equity executives with the…
7 minutes read Succession has been a huge TV franchise hit for HBO. It has ageing patriarch Logan Roy contemplating what the future holds for him and his media empire. You may not have an empire, but your business is valuable, and you should consider succession. Will it be to the family, a trade sale, a…
10 minutes read In the title, we draw inspiration from the name of the renowned 1989 book “Barbarians at the Gate” on leveraged buyouts written by Byran Burrough and John Helyar. This narrative characterises financial buyers as modern-day raiders who are not armed with “real money.” However, contrary to the position in 1989, today the coffers…
9.5 minutes read Changes In 1972, David Bowie released “Changes,” a timeless song that still resonates strongly in today’s era of upheaval. Beyond its musical brilliance, the lyrics hold significant relevance to the ever-evolving landscape of business and exit strategies. They encapsulate the need to adapt to the turbulent environment in which today’s businesses operate.…
Understanding the technicalities of company valuations is of paramount importance for investors, entrepreneurs, and business professionals. Valuations also offer valuable insights into a business’s financial health and possible sale preparation. In our upcoming webinar, we explore: 1. Company Valuation Methods: Understanding how to assess a company’s worth, encompassing income, market, and asset-based approaches. 2. The…
9 minutes read The market has shifted, and for many, fast-track growth seems like a distant dream. Investors and buyers are treading more cautiously but there is still good money available for shareholders to sell or take investment where the business is profitable, predictable, and robust. So, you might ask “Why sell your business in a…
5.5 minutes read Preparing your business for sale is a critical step in ensuring a smooth and successful transaction. Even if you are not actively looking to sell your business, being ‘sale ready’ is essential if you are looking to sell in the future as you never know when a buyer may approach. There are many…
7 minutes read For many, selling your business is the ultimate reward. Providing the opportunity to secure wealth, time, and capital. For many that dream is having enough capital to comfortably live without concerns about work or business, or at the very least having the freedom to make that choice. Wealth is the freedom to decide.…
There are over 300 companies a year choosing Employee Ownership Trusts (EOTs) as their exit strategy. There are a number of factors which appeal to seller, including 0% Capital Gains Tax, a vendor-led process and the immediacy. But what is it like to run an EOT? Our Chairman, Kevin Uphill, examined life inside an Employee…
8 minutes read In 2022, the UK witnessed a surge in the creation of Employee Ownership Trusts (EOTs), with a record-breaking 332 companies joining the fold. This brought the total number of employee-owned businesses in the country to 1,418 (source: Employee Ownership Association). This trend can be attributed to various factors, including succession planning needs, the…
7 minutes read Achieving competitive advantage in business is synonymous with outperforming competitors. This advantageous position is founded on four key pillars: efficiency, quality, innovation, and customer responsiveness. By excelling in these areas, a company differentiates its offerings, delivers enhanced value to customers, and potentially operates at a lower cost base, thereby increasing market share and…
9 minutes read A sale of your business to all the employees via an Employee Ownership Trust (EOT) is a relatively simple, advisor and vendor-driven exit strategy and therefore more immediate than a trade sale. What’s more, to encourage such sales, they are currently subject to 0% Capital Gains Tax, provided they meet the qualifying rules.…
8 minutes read From a legal perspective, when purchasing a company in the UK it is your job to check that everything is accurately represented. UK law operates on the principle of Caveat Emptor, which is derived from the Latin phrase, “quia ignorare non debuit quod jus alienum emit” meaning, ‘let a purchaser beware, for…
In our live panel discussion on Employee Ownership Trusts (EOT) featuring Kevin Uphill (Chairman of Avondale), Mike Dinnell (Director of Business Development at Thincats), and Fran Lord (Head of Communications and Policy at Employee Ownership Association), we explored the competitive advantages of Employee Ownership Trusts (EOT), typical structures, valuations, pros and cons and funding options.…
4.5 minutes read Employee Ownership Trusts (EOTs) have become quite popular among business owners to sell their businesses. In the UK alone, there are now over 1,300 EOTs, and they received more than 400 applications last year. While the 0% tax break on Capital Gains is a significant advantage, there are other reasons why Employee…
Acquisitions have the potential to propel a company’s growth more rapidly than organic growth. However, they are often fickle, with over half of them failing to achieve the expected value or synergy post-deal. So, how can you improve your chances of success and ‘buy right’? One crucial aspect is to ensure that you don’t overpay,…
4.5 minutes read The impact of Capital Gains Tax rates on business sale timings The sale of a company is often the ultimate goal for an entrepreneur. Cash in the bank and freedom of time – however, with your business generating a good yield and alternative investments being volatile, many business owners understandably choose to…
6 minutes read Buyers and investors have remained highly active despite the market volatility, but how can you best prepare your business for sale to drive the “we need, we want” motivation in buyers in a market where quality pays? 1. Fail to plan, plan to fail This may be just a saying, but its essence…
4 minutes read EOT – Employee Ownership Trust Employee Ownership Trusts (“EOTs”) are becoming an increasingly popular way for business owners to transfer ownership of their companies to their employees. The UK Government introduced several tax incentives for EOTs in 2014, including a 0% Capital Gains Tax (“CGT”) rate on the sale of shares to an…
9 minutes read Acquisitions can propel companies to competitive advantage faster than organic growth, however, they are fickle with over half failing to achieve the expected synergy or value gain post-deal. So, how do you improve the odds and ‘buy right’? A foundation is to make sure you don’t overpay but rather than another focus on…
3 minutes read Mergers and acquisitions (“M&A”) are increasingly common however, the increasing frequency of M&A deals has raised concerns regarding the tax implications. There is a growing debate about whether Capital Gains Tax (“CGT”) rates should be increased for M&A transactions. Proponents of the increase argue that higher CGT rates will generate more revenue for…
5 minutes read In business valuations, ‘Debt Free Cash Free’ is a commonly used term that impacts the sale process. At Avondale, we know that selling your business is a huge step and one that will have a far-reaching, and hopefully positive impact on your future. However, the business sale journey will take you down many new…
3 minutes read With the economy stagnant and following Kwasi Kwarteng’s mini-Budget, major stumble in September, Jeremy Hunt today presented a slow and steady budget that aims to trim inflation whilst boosting productivity and growth. But will it work? The key changes for businesses are: Corporation Tax (“CT”): As previously announced this increases from 1 April…
5 minutes read An outstanding business, with great growth potential in an expanding market and strong recurring revenue, will always command a premium value. It can, however, take many years to design and create such a business, and often it requires time, capital, the right team and place. So, if we put aside the exceptions, how…
4 minutes read Why do some advisors insist on using all the legal terms when discussing Employee Ownership Trusts structures (“EOTs”)? Are they wanting to make these transactions seem complex and expensive? Why do they only seek owners who are ‘altruistic’ or team-driven? This approach simply puts people off Employee Ownership Trusts and yet, with nearly…
5 minutes read With nearly a third of M&A deals going to Private Equity buyers in 2022, you may be asking “should I sell to them?” The answer will be driven by several factors including the deal structure and of course price, but in a world of abundant capital, a Private Equity (“PE”) sale may be…
10 minutes read Our series of articles on the ‘Perfect’ Business Sale a couple of years ago proved to be very popular, so we thought it would be good to start 2023 with a summary of what we believe are the key strategies to achieve the perfect business sale. The ‘perfect’ business sale is a fast,…
3 minutes read Firstly we would like to wish everyone a Happy New Year. We hope you had a good break and are now ready to tackle the year ahead making 2023 a successful and prosperous year. With the announcement of the Spring budget set for the 15th of March 2023, there is speculation about potential changes…
5 minute read Know Your Business to Improve Saleability As a business leader, you hope your company will be profitable and achieve incremental growth. You have a good feel for the level of profit your company is going to deliver over the next 12 to 18 months but the value you have in the business usually…
11 minutes read Cost Reduction With margins squeezed and slow growth in a world of inflation, there are fewer opportunities to pass on your increased costs. Business costs are challenging, on second thoughts, they are psychologically difficult – but there are choices. How do you review your cost base and spot ‘layer cake’? Where can…
3 minutes read Today’s Autumn statement resembled a tightrope walk – increasing income (taxes), cutting costs (the state) and improving the balance sheet (debt and interest) – all whilst inflation is rife, and economic growth has stalled. It felt as though the Government was sway-dancing on the tightrope to ‘Everybody Hurts’ (the 1992 REM classic and…
12 minutes read The Market Recessions are not just about poor economic growth, they are often accompanied by other characteristics such as widespread job losses, fewer available jobs, and more Government relief. Investors may baulk, but stocks tend to bounce back rapidly making recessions a good time to invest. With all the turmoil in the…
With all the recent turmoil in number 10 coming after the shocks of Brexit, Covid and the Ukrainian war, one might ask whether now is a good time to carry out Mergers and Acquisitions (M&A)? The answer is yes – M&A creates synergy and economies of scale (which offsets margin pressure) and shareholder value growth…
10 minutes read Selling a business through an Employee Ownership Trust (EOT) is an excellent exit strategy for those shareholders who want to preserve the legacy of their company whilst realising wealth at 0% Capital Gains Tax. It can also be a soft exit for sellers who want to gradually relinquish control – but many, however, do not explore an EOT…
Environmental & Social Governance (ESG) has been undoubtably moving centre stage for businesses, driven by its significance as well as legislation. We are increasingly seeing ESG crop up on board agendas and throughout due diligence, as well as starting to play a crucial part in growing sales, managing costs and increasing productivity via the need…
With recession looming, companies are seeing their costs increasing and margins being squeezed. In today’s podcast Kevin Uphill, Chairman of Avondale, is joined by Simon Dodson of Expense Reduction Analyst, leading cost optimisation consultants, to discuss how to keep profits in the business through cost reduction and how to run a lean business model…
For clients thinking of buying or selling companies Capital Gains Tax (CGT) has by far the biggest impact and so far, there is no indication that the CGT rate has changed in this mini-budget – which is good. The trickle-down economic strategy that the new team in No 10 has adopted of trying to grow…
21 minutes read Everybody’s Free to Wear Sunscreen Some of you may recall “Everybody’s Free to Wear Sunscreen“, the brilliant song by Baz Luhrmann. The line “sometimes you’re ahead, sometimes you’re behind…” seems particularly apt in these crazy times, it’s also relevant for anyone selling their business – in that timing is important but so…
Whilst we do not believe that the perfect sale, whether trade or otherwise, exists, in this insight we share some ideas that will help you get as close as possible to your perfect sale. Although predominantly written for sellers, there are a few points that are relevant or even specific to buyers. The Decision to…
10.5 minutes read For many business owners, selling their company to exit is the ultimate reward for years of hard work. Most of the wealth in the world is capital wealth, not income, and realising this wealth can be an important part of a business owner’s journey and the peak of their ambitions. In a world…
12 minute read Introduction Negotiating the best price for your business is key when research shows that more than half of the companies in the UK are undersold. They do not achieve maximum negotiated value – they only secure financial sale value. Surprisingly, the cause of this is not always sale preparation or the company…
7.5 minute read Trade, Family Office, Private Equity, or Management Buy-Outs (MBOs) are all recognised exit options for business owners – each with its own pros and cons. However, we are increasingly seeing a changing trend with shareholders now opting for Employee Ownership Trust structures (EOTs) for sale and succession because they offer significant benefits over…
An exit strategy is a plan to create succession or liquidate the value of shares. A successful exit will focus on profitable value and ideally realise the goodwill inherent in a business; that being the customer loyalty that results in both current and future profitable revenue. Some corporates will also divest non-core assets to realise…
8.5 minute read The “perfect” trade sale – is a fuss-free, maximum value, strategic trade deal with buyers that just “get it”. Yes, this is great in theory, but how can you achieve it? The Right Stuff Preparation, timing, and process all have a bearing on achieving the “perfect” trade sale, however, strategic buyers will be…
Download file here. When successfully completed, an acquisition can have a dramatic effect on the business; delivering a significant increase in profit that would have taken many years of organic growth to perhaps achieve, with all the added uncertainties that are all too natural in the business world. Additional potential benefits of an acquisition are…
This article is contributed by our lead professional trustee firm, Independent Directors and Trustees (IDT). Any opinion expressed or advice is IDTs. The content is considered useful Continuous Professional Development material for owners considering an Employee Ownership Trust. If you have any questions or enquiries, please email us at av@avondale.co.uk or contact IDT directly quoting…
Acquisitions can propel companies to competitive advantage faster than organic growth can deliver. Carried out well, they can grab headlines and secure ‘CEO saviour’ or ‘leader’ reputations. Carried out badly they can also destroy value and create ‘CEO scoundrels’ as we saw with the UK’s Sir Fred Goodwin’s ABN AMRO purchase; poorly delivered and overpaid…
Download file here. Shareholder Disputes and Negotiations We call it shareholder fatigue. Quite simply, the owners no longer see eye to eye. Often this is driven by exhaustion and frustration; there is no common vision or there is a lack of agreement on the direction of the company. Sadly, it can also be driven by…
We call it shareholder fatigue. Quite simply, the owners no longer see eye to eye. Often this is driven by exhaustion and frustration; there is no common vision or there is a lack of agreement on the direction of the company. Sadly, it can also be driven by work ethic, with many owners believing and…
4.5 minute read Business Strategy “Good to Great” Top 10 Tips It’s 20 years since Jim Collins published his archetypal business strategy book “Good to Great”, a study on why some companies make the leap to success… and others don’t; it is still a great read today. Central ideas from the book which studied 28…
Download file here. Financing for Growth or Acquisitions – Podcast Organic growth is hard work, more so with the headwinds of Brexit, Covid and now the Ukraine war all creating drag, and yet there is superabundant capital, be it bank finance or equity looking for good returns. But which is best? Debt, equity or a…
Financing for Growth or Acquisitions Introduction Organic growth is hard work, more so with the headwinds of Brexit, Covid and now the Ukraine war all creating drag, and yet there is superabundant capital, be it bank finance or equity looking for good returns. But which is best? Debt, equity or a mix? Financing for…
If carried out correctly, acquisitions may be the best route to achieving competitive advantage and return on capital employed. However, as with so many elements of mergers and acquisitions, there is an art to financing the deal, including questions like ‘where do we best raise the money and which type and structure of debt is…
3.5 minute read So, there you have it another Spring statement and a very difficult act. Quite simply, the UK and increasingly the finances of its households are in a mess. Inflation is rife resulting in the biggest fall in disposable income since records began in the 1950s. Post-pandemic growth is being stifled and the war…
How to Improve the Saleability of Your Business Selling your company is the largest financial transaction most people ever undertake. Despite the large sums of money involved, it is surprising how most business owners do not plan adequately. This is one of the key reasons many business owners get a nasty surprise – approximately a…
Different people start companies for different reasons, which invariably influences their exit strategy. Trade sales catch the headlines, but family succession, private equity sales and management buy-outs are all commonly used exit strategies. There is however, a developing approach which is creating significant interest. In the last six months (Summer19) Arbuckles Restaurants, Aardman Productions (the…
How the Russian-Ukraine war affects Mergers and Acquisitions After the shock to the system that was the COVID-19 pandemic, the global economy seemed to be healing. This has especially been the case since late 2020 into early 2021, with last year being the best year for M&A, with a new deal value of nearly £4…
6 minute read Research & Development tax relief drives innovation and fuels growth, could investigating a claim transform your business? What is R&D Tax Relief? Research & Development (R&D) Tax Relief is a government tax incentive intended to reward UK companies who invest in innovation or allow them to mitigate the financial risks of unsuccessful development…
Securing Competitive Advantage through Employee Ownership Kevin Uphill, founder and chairman of Avondale Corporate, is joined by Ice Roof & Cladding managing director Gareth Davies in this webinar, ‘Securing Competitive Advantage through Employee Ownership’. Employee Ownership sales are becoming more popular, with 0% capital gains tax and not all companies being suited for trade sales.…
11 minute read Acquisitions can propel companies towards competitive advantage at a faster pace than organic growth can achieve. When well-executed, acquisitions can grab headlines and secure ‘CEO saviour’ or ‘leader’ reputations – but, when badly executed, they can destroy value and create ‘CEO scoundrels’, such as we saw with Sir Fred Goodwin’s ABN AMRO purchase.…
In an ever-evolving corporate landscape business leaders must recognise the importance of focusing business strategy on creating valuable companies as well as on maintaining day to day functions and profits. Valuations are centred around balanced risk and longevity of cash flow, present value of money and the likely yield we can generate from its effective…
8 minute read Employee Ownership (EO) is an established exit strategy, whereby shareholders sell their company to a trust for the benefit of their employees. Since 2014, (“CGT”) free – this advantage is primarily driven by Government studies demonstrating that Employee Ownership increases company productivity, sustainability, local investment, and social mobility https://www.gov.uk/employee-ownership. There are now circa…
How to Build a More Valuable & Sustainable Business Turnover is vanity, profit is sanity, but value is the reason. That is to say, the ‘reason’ many build successful businesses and work incredibly hard is the hope to sell those businesses for ‘beach money’ – beach being the metaphor for the financial freedom to choose…
9 minute read The skills and knowledge required to manage companies and create shareholder value have historically sat firmly in the realm of public companies. This is because listed public shares are ‘traded’ daily, thereby providing a daily ‘valuation’ of the business and company executives’ performance based on the value and earnings they achieve per share.…
6.5 minute read The M&A market continues to go from strength to strength. Trade buyers need to make acquisitions to shift their business models and create scale and private capital is looking for the yields that smaller businesses can provide. Valuations are holding and if you are planning to sell your business, the following revisited…
Mergers & Acquisitions post-COVID Kevin Uphill and Tim Hardman of Avondale Corporate will look at mergers & acquisitions post-COVID-19. From strategic trade deals to Employee Ownership, MBO sales and Private Equity investment. Topics covered include: • Valuation methods and deal structures • Latest trends • Identifying the right deals • Identifying the right buyers or…
Private Equity Demystified Over half of all M&A transactions in the UK in the last year have been Private Equity led or financed. It is no longer good enough to avoid understanding these transactions because we don’t like ‘the suits and spreadsheets’. When structured correctly, they can be hugely effective at blending both exit and…
Is this a lucky Chancellor? A faster than expected growth economy, plus inflation, has resulted in more taxes being collected and more money available to be spent. In relation to businesses, we see, and welcome, business rates being cut in hard-hit sectors like leisure and hospitality, and the R&D tax reduction remaining in place. Additionally,…
5 minute read Quite often a ‘good’ company is perceived as being average. In the 1990s, well-known management books such as “Good to Great” and “In Search of Excellence”, further re-enforced this view. ‘Great’ or ‘excellent’ is the mantra and ‘good’ is not sufficient. This is a shame, as it can result in CEOs and…
2021 M&A Trends and Mid-Year Review It’s a world of volatility and low organic growth; yet many businesses are still outperforming expectations. It’s also a world of superabundant capital – too much money that is looking for a yield, which is rocket fuel for buy-outs. M&A is a critical component of strategy, so what is…
6 min read With high fees, leveraged debt and now the takeover of cherished public companies, Private Equity firms (“PE”) may be viewed as the new imperialists, dominating every sphere of the corporate world. So how does this translate within the emerging mid-enterprise (EME) market – that is, businesses with an enterprise value of £3-£50m?…
4 min read An Employee Ownership Business could be described as ‘Purposeful Capitalism’ a term used to explain making money with ethics –it means there is a purpose to the venture and activities and a positive ethos or spirit to the business model. The strategic choice to be a ‘good’ company is no longer defined solely…
Business Exit Strategies: The Do’s And Dont’s A business exit may be the largest transaction a leader will undertake, and the right approach can make a fundamental difference between success and failure. Mistakes can be costly, and here we present the most common slip-ups and how to avoid them. In our Exit Strategies: 11 Worst…
9.5 min read 2021 M&A Trends and Mid-Year Review Increasingly we are witnessing in 2021 M&A trends as the pandemic has changed many aspects of our world. Whilst it has accelerated virtual working and placed technology at the centre of our business models, it has also left organic growth as no more than a pipe…
In our ‘Vendor Assist – How to Strategically Prepare for Sale & Vendor Due Diligence’ webinar Kevin Uphill, Chairman of Avondale, is joined by strategist Stewart Millington to discuss the objective of a vendor assist evaluation. Topics covered include building a ‘sale ready’ data room, valuation and finance, legal and business reviews. If you would…
9.5 min read A business exit may be the largest transaction a leader will undertake, and the right approach can make a fundamental difference between success and failure. Mistakes can be costly, and here we present the most common slip-ups and how to avoid them. 1. Failing to Prepare The Business Exit Strategy Many owners…
16 min read What Is An Employee Ownership Trust? Employee Ownership is now an established structure when shareholders seeking an exit sell their company shares to their employees. Since 2014, such sales have been 100% Capital Gains Tax (“CGT”) free. This is because the Government believes, quite rightly, that an Employee Ownership Trust increases company…
How To Sell Your Business To Your Team – The Employee Ownership Sale In our ‘How to Sell Your Business to Your Team’ webinar Kevin Uphill, Chairman of Avondale, is joined by employee ownership trust specialist Sue Lawrence, as well as Greg Vincent of Morrisons Solicitors LLP to discuss why employee ownership is centre stage.…
3 min read Selling Your Company To Employees: A Quick Glance There has been a lot of talk about employee ownership sales over recent months – and clearly, there are a lot of misconceptions. Many people regard it as being a ‘soft’ option to hand over a business to employees with no real upside…
6 min read The Semi-New Kid on The Bloc: Employee Ownership Sales Vs The Traditional MBO An Employee Ownership sale involves the sale of a minimum of 51% of your business to your staff through a Trust structure, whilst a Management Buy-Out (MBO) is where your company’s management team purchases the business themselves – not through…
Creating Competitive Advantage During The Covid Pandemic In the broadcast posted below, Kevin Uphill and business mentor Joe Hinton discuss how to create competitive advantage in volatility. The Covid-19 pandemic has created recession, accelerated virtualisation, and driven some sectors to the ground. Many leaders will focus on business maintenance and avoid deep decisions until there is…
4.5 min read Creating Competitive Advantage During The Covid Pandemic The Covid-19 pandemic has created recession, accelerated virtualisation, and driven some sectors to the ground. Many leaders will focus on business maintenance and avoid deep decisions until there is more certainty, with the belief that in a storm you should not aim for higher ground, but…
3.5 min read Let’s go invent tomorrow rather than worrying about what happened yesterday”. These were the words of Steve Jobs when he was reinstated as head of Apple Computers in 2007. The idea of looking to the future rather than dwelling on the past certainly resonates in our ‘new’ world. Covid-19 has undoubtedly had a…
5 min read SME Meaning: Putting Small and Medium Enterprises (SMEs) in Room 101 ‘Room 101’ is where we put things that we find torturous. The term comes from George Orwell’s famous novel ‘1984’ and, more recently, the great British TV programme. ‘So, are you suggesting we put 99% of the UK’s businesses in Room 101?’…
So long, and thanks for all the fish! Following Ursula von der Leyen’s announcement earlier today, some form of Brexit deal is looking more likely. Leaving the European Union is a political choice ultimately based on sovereignty, and of course ‘fish’ judging by newspaper headlines. My headline is borrowed from the Douglas Adam’s book -…
10 min read The Tax On Selling A Business And Its Effect On The Business Sale At the start of this series, we defined a ‘perfect’ sale as a fast, optimised sale, with the right buyers or investors, with the right terms and timing, minimal tax on selling a business, and a rewarding onward…
12 min read Completion: Selling A Business And What To Expect Once a deal is agreed, an exclusive period with one buyer is typically undertaken followed by a focused push to finalise the transaction. This involves the purchaser ensuring that they are buying what they believe are being sold through a process of due diligence, finalising…
The Tax On Selling A Business And The Budget In this broadcast, Kevin Uphill and James Heathcote, director of private client advisory services at Lancaster Knox, discuss the current tax regime, potential 2021 budget and opportunities. The webinar is available below, however, first lets talk about the ‘perfect’ business sale, the tax on selling a…
8.5 min read In Week 3 of our ‘perfect’ business sale series ‘Creating Competition’, we examine how to best drive value in your company sale and attract the right buyers through competition. Creating an Auction For Your Company Sale You have worked hard for your success and now you want to realise that value by…
7.5 min read Market Presentation To Sell A Business Presenting the business to create a “we want, we need” motivation in buyers is essential to achieving the ‘perfect’ sale. Here are our top five tips to positively engage the market when you have taken that first step to sell a business. Advisors Making the choice…
The ‘Perfect’ Business Sale – Selling A Business In this broadcast, Kevin Uphill and Tim Hardman discuss the different types of exits, the steps to the perfect sale and the timeline of selling a business. The webinar is available below, however, first we shall talk about the ‘perfect’ business sale that is ‘easy to define…
The ‘Perfect’ Business Sale – A Fast, Fuss-free Transaction on The Right Terms With The Right Buyers, With A Rewarding Journey Afterwards And No Sting in The Tail. The ‘perfect’ business sale is ‘easy to define but hard to align’. Despite the huge distraction caused by the COVID crisis, buyers are still highly active as…
In this broadcast, Kevin Uphill, Tim Hardman and Peter Drinkwater discuss unlocking growth and breaking the glass ceiling. They also share why most companies plateau and how to create value in business. How To Create Value In Business And Promote Growth To create value in a business is hard and with the current volatility it…
5 min read Strategies for Business Growth Through Mergers & Acquisitions The restrictions on our personal lives and businesses are gradually beginning to ease, but the coronavirus will likely have long-lasting effects, with no quick return if ever to how things were. For a business to drive change against slow or negative business growth, part…
In this broadcast, Kevin Uphill and Sue Lawrence discuss how to build the right team for Employee Ownership sales, how to understand the financial model and how to prepare for the process. They also share the 0% tax and HMRC clearance and why more companies are using the approach post-COVID. Employee Ownership Trusts In the…
8 min read Employee Ownership Trusts In the last two years, the number of UK Employee Ownership Trusts (EOT) businesses has doubled. This is because, if structured correctly, they can match the value of trade sales but with a capital gains tax of 0% to the selling shareholders. They can also create a more productive…
How To Prepare a Business for Sale During the Covid Pandemic In this broadcast, Kevin Uphill and Tim Hardman discuss how to be sale ready despite volatility, how to create a standout position and a ‘we want, we need’ buyer motivation and how to scale to sell. They also share why information technology is critical…
3 min read Blue Ocean Strategy in a Covid and Post-Covid World Confidence is rising, with the expectation that the economy will soon return to sustained growth as the lockdown continues to ease. However, the longer-term recovery prospects remain highly uncertain. Some of the recent gains in markets reflect short-term bounces as businesses returned…
How To Prepare a Business for Sale During the Covid Pandemic: Things to Consider The M&A market continues to be buoyant, with buyers actively seeking out investments. In the main, this is due to trade buyers need to make acquisitions to shift their business models and create scale and there is private capital looking…
Some of the best business ideas have come out of economic recessions, as entrepreneurs challenge old ideas to find new markets. “Survival of the fittest” is a phrase that originated from Darwinian evolutionary theory and in that sense, now is the time for bravery, vision and material positive business disruption. Organisations that successfully adjust to…
Private Equity: Myth Vs Reality In this broadcast, Kevin Uphill discusses how investors add value, what private equity looks for and typical structures and costs. He also shares ideas on investment and Covid-19 and some success stories. What Is It Really Like Working With Private Equity and Should You Explore This Route to Sell Your…
What is it really like working with Private Equity and should you explore this route to sell your business? Conventional wisdom is that a trade buyer who can gain economies of scale and synergy will pay the most for your business. Today, however, with so much private money looking for yield, Private Equity (PE) is…
Corporate Strategy During Covid: What Can be Done As the Economy Changes? As a result of the Covid-19 pandemic, many people will be changing their behaviours, which in turn will impact how we trade, just as lockdown has hit the cash reserves of many businesses. Absolutely no one is safe in the Covid-19 world, and…
M&A Jargon and Its Place For those of you who do not know, a Babel Fish comes from the Douglas Adams comedy science fiction book “The Hitchhiker’s Guide to the Galaxy”. In the book, he describes a bright yellow fish that, if placed in your ear, can automatically translate any language into your native tongue.…
Business Post-Covid: Remain Positive, React Accordingly and We are Usually Successful The media reports constant gloom and we know that shutting sections of the economy such as leisure and travel is going to have a significant long-term shock. However, the history of the economy proves that there are reasons to be cheerful, and the road…
Business Post-Covid: Remain Positive, React Accordingly and We are Usually Successful I was listening to some old songs over the weekend that got me thinking. The lyrics “The road I must travel”, from Mr Mister’s cheerful 1986 song entitled Kyrie Eleison reminds me of the current challenges ahead. What is going to happen to business…
Precis On changing your business model to drive change. Discusses harnessing technology to Ignite your brand, increasing productivity and collaboration. We have launched our ‘Lead Ahead’ Webinar Series in line with our weekly articles. Join our ‘Selling a business during Covid-19 – 9 Things you can do to prepare’ webinar on 6th August 2020, 9.30 to…
There is the return to work versus a return to the office debate post-COVID. The endless social-media work-life balance comments have reduced in the pandemic, however the 4-day week and flexible working agenda still seem to be in the news. Are these aspects relevant? After all, In the 21st century, we have 24/7 connectivity and…
Private Equity: A Gold Mine Waiting to be Exploited? Economic growth was slow before the pandemic, but the resultant lockdown and social distancing will undoubtedly create more drag. It was hard to grow quality companies before COVID-19, now it will be even harder. Yet there is a real solution in the estimated £2.3 trillion of…
The M&A (Mergers and Acquisitions) strategy in both a volatile market and a dynamic market should remain the central theme (Kevin Uphill ‘Creating Competitive Advantage’): Look at who your future customers will be. Take time out to think and research to lead ahead, rather than manage. What niche can you own, where you create pull…
Is being Employee-Owned the Future? The economy is slowly opening after the lockdown. Hopefully, the ice will gently thaw, albeit warm weather may be some way off. We have already written about how an economic slowdown should encourage evaluation, and the latest news on this came from the John Lewis Partnership. This goliath of the…
Is Employee-Owned the Future? The economy is slowly opening after the lockdown. Hopefully, the ice will gently thaw, albeit warm weather may be some way off. We have already written about how an economic slowdown should encourage evaluation, and the latest news on this came from the John Lewis Partnership. This goliath of the high…
Business Sales During and After Covid-19: What To Expect and Our Predictions There is no doubt we are at the beginning of this journey and we don’t know how long it’s going to last, or how far into the future there will be a knock-on effect on society and the economy. What I can tell…
EBITDAC Valuation Methods During the Covid-19 Age and What It Means for M&A Discusses latest trends and risks, together with possible methods and approaches. Looks at how professional buyers are tackling the challenge and driving shareholder value. Many of you may have seen the coffee mug circulating on social media; EBITDAC, earnings before interest depreciation,…
Business Productivity Ahead of The Covid-19 Pandemic Last week our partners at the Institute of Directors IOD, published a Directors’ Priorities List which shows the support available to UK businesses under Lockdown. Whilst being quite helpful, it somewhat misses the point. If it is aimed at the CEO, the list really should start and end…
Entrepreneur Lifestyle in The Age of Covid-19: Time to Reflect It is said there are two certainties in life, death and taxes; now we must add Coronavirus. This new certainty will be with us for some time, and with it comes economic damage and a detrimental social impact, and part of that social impact may…
The Importance of a Covid Business Strategy The interplay of how we protect lives versus the economy is unprecedented, yet essential. When this crisis finishes the economic fall-out will be huge, with a real drop in gross domestic product. In the 2009 credit crash, the UK saw a drop in GDP by 5% and this…
Remote Work and its Evolutionary Transition IT now sits firmly at the heart of businesses, making up a remote working ‘Business Hub’ of remote work- however flimsy or sophisticated it is. Coronavirus has enforced nearly every organisation to embrace virtualisation, however, research suggests that many businesses have layer cake operational and divisional models where…
Remote Work and Its Impact On Business In this broadcast, Kevin Uphill explores the opportunities for efficiency in business operations, remote work, leading to increased profit, enhanced shareholder value and improved business value. He looks at working from home and conjoining systems, increasing collaboration and reducing the management layer cake. IT now sits firmly at…
What exactly are the the Entrepreneurs Relief changes and what will be the Covid-19 impact on the value of businesses Yes, we should worry, as we aren’t sure if covid-19 can be slowed down. However, if a tidal wave can be reduced to a heavy sea we should not worry. This can happen if…
Entrepreneur’s Relief: What Does the Price Cut Actually Mean for Entrepreneur’s? It looks as if the chancellor, Rishi Sunak, rather predictably, didn’t read my article “Could entrepreneurs’ relief be a benefit to the economy rather than a drain on the treasury?”. Announced this afternoon in the budget statement, Entrepreneur’s Relief (ER) – the relief…
The Entrepreneurs Relief Fund And What It Might Mean for The Economy According to the Guardian on the 1st March 2020, Chancellor Rishi Sunak is planning to scrap a £3bn tax relief in a bid to raise cash for an expected increase in public spending in the budget on 11 March. With the budget just…
Tim Hardman, Managing Director of Avondale was invited onto an episode of The Leaders Council podcast, which also included an interview with Lord David Blunkett. Host Jonathan White asked both guests a series of questions about leadership and the role it has played in their careers to date. The Leaders Council of Great Britain and…
Do we create our own luck? Whatever your point of view on Brexit, at least the election result will draw a line under the issue. The Prime Minister will be determined to implement it fast and allow the country to move on. History may yet prove that it is to our advantage to have left…
Business culture and it’s importance in the M&A world There is a saying, “before you presume to manage others, know yourself”. The same may be applied to business culture. When you know your people, their values, beliefs and how these combine with decision-making, and therefore how things get done in an organisation, you may understand…
Business failure: Here are three reasons why companies fail to sell and what you can do to prevent them Although rarely spoken about, the fact is that successfully selling a business requires considerable expertise and experience. Businesses are both unique and complex and there is a myriad of reasons why they may not sell. More…
Transactional Risk In Business Sales Business sales are complex, and no two are the same – we all know this. Because of this, many sales fail and leave a very disappointed seller and buyer. Even when an advisor is familiar with the type of challenges that occur most regularly, there will always be issues which…
So How Exactly Did We Help Double A Business Offer Then? Expertise is a word used by many companies; but what does it actually mean? What difference does business expertise actually make in an M&A business offer? In the example we will be talking about today – one of the first in a series of…
What is my business really worth? Lets find out… We’ve all heard the question ‘How long is a piece of string?’. Ignoring the answer that it’s twice as long as half its length, what does string length have to do with the value of your business? Well, the length of this said piece of string…
Christmas is past but for many business owners it was a life changing time. Read my article to find out why
Christmas is past but for many business owners it was a life changing time. Read my article to find out why
Successful leaders recognise that M&A is critical to business strategy – whether acquiring, creating shareholder value, merging or selling.
Acquisitions can be a vital component of business strategy. However, for an acquisition to truly add value to a business, it must fulfil a range of requirements.
In recent years, the number of MBO deals has seen a steady rise. Last year, the number of deals rose 20%, from 76 deals in 2016 to 91 in 2017. In the same period, the total value of MBO deals grew from £2.6 billion to £2.7 billion – a 4% increase.
Britain’s SMEs are a critical driver of the economy. Now more so than ever. At a time of heightened economic and geopolitical uncertainty, it’s essential that private mid-market companies continue to innovate, grow and create jobs.
A solid understanding of the tax environment is critical when planning a merger or acquisition.
In our annual survey in association with the Institute of Directors, we surveyed the views and opinion of IoD members and users of IoD.com. The results, on the one hand, highlight the difficulties facing CEOs and owners at a low- and emerging mid-market level. However – amid emerging threats and challenges – we are also seeing resilience and a determination to carve out new paths to growth.
M&A activity, whether buying, selling or merging has always been a strong complement to business success and in today’s slow-growth economy, it moves centre stage.
Buying or acquiring a business is a major milestone in any entrepreneur or business owner’s career. And it’s the one that invariably throws up the most challenges and concerns. With so many potential complexities to navigate, even ‘serial’ entrepreneurs and seasoned M&A veterans struggle to make the process of buying or selling work for them.
Undertaking your business sale is one of the most important financial decisions you will make and an M&A advisor will help enable you to achieve maximum value and an optimum deal structure.
With the Brexit deal still locked in controversy and confusion, accompanied by pessimism in the press about the economic implications, it is easy to feel downhearted about investment for SMEs and the mid-market particular.
At Avondale, we, as much as anyone, understand the value of M&A in driving business growth and wider economic expansion. For small- and medium-sized companies in particular, acquisitions provide a vital avenue for growth and a key outlet when considering an exit or succession planning.
M&A is technical, so when it comes to selling a business, the focus has tended to fall purely on the “how”. Yet the most effective business conversations start with the “whys” or the “what ifs” – the personal motivations that drive a sale carry their own value and are not to be downplayed.
Big acquisitions create headlines, but lately, Avondale has observed a growing interest in smaller transactions across global M&A markets. With larger, “scale” deals failing to generate substantial returns over a long period, buyers are seeing the long-term potential lurking in the mid-market.
The head of Avondale’s strategy practice, Mark Baldwin, discusses some of the common patterns holding back mid-tier companies, and looks at how they can kick on to the next stage of growth.
Britain’s SMEs are a critical driver of the economy. Now more so than ever. At a time of heightened economic and geopolitical uncertainty, it’s essential that private mid-market companies continue to innovate, grow and create jobs.
Here are our six key predictions for 2018 that we believe will make an impact on the year.
Download our Strategic M&A Outlook Report to gain valuable insights into the trends and dynamics of mergers and acquisitions market.
Read how technology deals remain high in the M&A world as business owners want to stay ahead of the competitors, bringing technology in-house through acquisitions.
