Selling Your Business
vfdnet Virtual Finance Directors are experienced in selling and buying businesses with years of experience of being a trusted guide to SME business owners.
Do you have an exit strategy? What drives you to sell your business? Legacy, money or timeframe?
As a business owner don’t have to rely on the traditional Trade Sale as your only exit option. You can sell your business to employees via a Employee Ownership Trust, or your management team in a Management Buyout. It’s probably the most important decision you will make as a business owner. vfdnet are here to guide you through the maze and pitfalls.
vfdnet virtual Finance Directors have experience of all of these business sale options and work closely with business owners, stakeholders, lawyers and accountants. They use their wise judgment to ensure you make the right choice for you, as the business owner, and for your business.
Your Exit Options
There are many considerations and pros and cons of each – your key drivers, timeframe, funding, and the people in your business!
Below you will find the three key options, please click on each to find out more.
You can be confident that vfdnet Finance Directors will provide financial leadership and project management for whichever option is right for you.
Employee Ownership Trusts
Sell your business to your employees. An option that is growing in popularity. vfdnet help plan the transition, prepare the valuation and cash flow modelling, and then project manage to successful transition to employee ownership. Perfect for business owners who wish to leave a legacy, have a brilliant team and can manage the payout timeframe. Is this right for you?
Management Buy Outs
Selling to your managers can be a good option. Do you have the right team and funds?
vfdnet virtual FDs manage key stakeholders, increase your chances of funding and readiness of your management team. We work with lenders and private equity providers to secure funds for a successful deal!
Traditional Trade Sale
This could be for you if you’re not interested in leaving a legacy, and want the maximum return and a quick sale.
Found a buyer? Now you need experts to achieve the best deal for your exit and to pre-empt the buyer’s due diligence questions, so making a successful deal more likely.
EOT Story
The owners had always had a strong belief in the management team, trusting it to take the legacy created forward into the future.
The owners had already re-buffed many unsolicited approaches and also judged that a leveraged buyout not to be suitable, so when the owners heard about Employee Ownership, they felt they had found the right solution.
The typical 11th hour complication occurred early in discussions, was overcome, so that the deal progressed to a rapid close before the March 2023 Budget.
James Shand’s work included the business valuation, facilitating the ‘grand bargain’ between key stakeholders, and helping project manage the legal process to successful completion.
– Telecom & IT managed services provider with £3m turnover and 30 employees
MBO Deal
The addition of a part-time Finance Director from vfdnet made for a cracking management team to negotiate and complete our MBO. Although the MBO process was uncertain and difficult at times, vfdnet ensured that we remained focussed on forging ahead with the business, and really helped make the deal happen. With a strong market position as a leading waterless printer, together with a highly motivated management team that owns the business we now look forward to the future with confidence
Gareth
CEO, Successful SME Printing Business
Business Sale
“Our Virtual Finance Director and Virtual Financial Controller team brought a further tier of professionalism to our accounting processes. Our VFD and VFC helped considerably in working through the due diligence requests and preparing documents with the Auditors and our Accountants’ corporate finance team”. His previous experience was very helpful in achieving both our price objective of £2.4m and meeting the completion date before the end of the year, a 6 week deal timeframe.”
Sebastian
MD and Business Owner
Employee Ownership Trust (EOT) or Management Buyout (MBO)?
What is the difference and which is right for your business?
Click Here to read more articles about EOTs
