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Blog - Benefits of using a corporate finance team

Blog - Benefits of using a corporate finance team

Tuesday, 04 April 2017

While business owners are experts in running their businesses, the sale or acquisition of a company is a complex, strategic, financial and legal process that should not be underestimated. For such a crucial financial transaction, it is always best pursued with highly skilled financial and legal professionals by your side.

Your corporate finance advisor will be responsible for finding the right buyer for your business, or helping you identify the right acquisition target to meet your strategic ambitions. The best advisors will also advise on valuation, deal structure and tax planning and help project manage the whole process from start to finish.

The benefits of using a specialist corporate finance advisor include:

  • Flushing out deal breakers at an early stage – Whether buying or selling, early discussions with your corporate finance advisor will give you the greatest chance of getting the best possible deal. Whether you are looking to sell in 2-3 years’ time, or looking to market the business as soon as possible, there are always things you can do now to maximise your post-tax sales proceeds and minimise the risk of a deal falling over during the due diligence stage. Likewise if you are looking to purchase another business, an early meeting with your advisors should ensure your deal is structured in the most tax efficient way and focus is drawn to any potential deal breakers as early as possible.
  • Retaining confidentiality – A corporate finance advisor will act between you and other parties, screening your identity in the early stages and implementing a legally binding Non-Disclosure Agreement with other parties.
  • Secure the best deal – When selling, a good corporate finance advisor can generate multiple leads and generate a competitive bidding process to help maximise sale proceeds. When buying, a good corporate finance advisor can structure the deal to ensure you have maximum protection.
  • Leaving you to run the business – The process is usually quite time consuming and can be a significant drain on a business owner, stopping you from focusing on your key priority, which is running your business. In particular, sellers must not take their eye off the ball as a short-term dip in company performance during the sales process can reduce the price.
  • Minimise your tax bill – No one wants to pay more tax than they must. Using a recognised firm of advisors with in-house tax experts will ensure your deal is structured in the most tax efficient way.

It is crucial to pick the right corporate finance advisors as it can be the difference between a deal completing and falling through. Therefore, it is key to pick an advisor with experience and knowledge of completing transactions whilst also being personable and approachable.

To contact Jack call 01603 624181 or email jack.minns@larking-gowen.co.uk

Jack Minns
Manager
Larking Gowen Corporate Finance

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