The Business Broker’s Blog
A resource to help you sell your business successfully
In our Blog, we aim to bring you a variety of articles to help you further down the road to selling your business successfully, from
our view on the general economy and its current impact on business mergers and acquisition activity, to our spotlight on the issues
faced by SME businesses and the help available. We also highlight our “Business of the Month” and give advice
on how to prepare your business for optimum sale.
We hope this is a useful resource for you and would appreciate your feedback. As always, please do contact us if you have any questions
Updated 17 June 2024 Our ongoing mantra is that the value of your ICT business lies predominantly in your service contracts. They are absolutely the jewel in your crown so it pays to make sure they stand up to buyer scrutiny! Review your contract documentation for improvements You want to ensure that your client,...
Article updated May 2024 Whilst a trade buyer’s desire to acquire your ICT business will be driven by the strength of your service contracts and operational prowess, their valuation will always be based on your financial performance. It is therefore paramount to provide them clear financial information so that they can make their best offer....
Developing effective operational teams is key to maximising the value that a buyer will pay for your business – ICT, Engineering, SaaS – whatever your industry, this is always the case. Assuming that you are planning to leave the business when you sell, any buyer will look for a strong 2nd tier management structure which...
Updated 15th January 2024 As we discussed in an earlier edition “Who would buy your IT support / telecoms business?“, buyers of ICT companies with revenues in the £500k to £5m bracket are most likely to be strategic trade buyers and one of the key elements of their acquisition is your client base. In putting...
So far we have looked at valuations, deal structures and what are the tipping points that drive sales and acquisition activity between SME’s in the IT support and telecoms market. Where your business sits within the upper and lower limits of the valuation range will depend on the strength of your business. It is factors...
Article updated: September 2024 The value of service contracts: are longer term contracts worth more than short term, 30 day notice, contracts ? Service contracts are a key revenue source for ICT businesses, alongside management services, ad-hoc projects, and hardware/software sales. These contracts provide predictable income and allow for better financial forecasting. The length of...
Article updated March 2024 How long will you remain involved in your company once the deal to sell the business is completed? To a large extent this will depend on the deal structure that is agreed as the buyer’s strategy for the business post completion will be linked to the type of deal structure they...
Updated in March 2024 Most business owners have a figure in their mind about how much their business is worth when the time comes to sell their company. Did you know that the value that you achieve will largely be determined by the type of deal you agree with the buyer? You may have a...
In our last E-Tutorials to-date, we have looked the multiple of earnings method for assessing the value of an IT support / telecoms business. Now we will look at the second theoretical method of assessing the value. Method #2: Multiple of Turnover This valuation method is used for IT support and telecoms businesses where there...
So far in our E-Tutorials to-date, we have looked what drives sales, mergers and acquisitions of IT support and telecoms businesses and the motivations of both buyers and sellers. Now we will look at the first of two theoretical methods of assessing the value. Method #1: Multiple of Earnings The multiple of earnings valuation is...
Article updated 19th June 2023 Few people these days can manage without using some form of IT. Whether it’s for streaming their favourite shows or running a business, staying connected via IT or telecoms is essential. According to the latest figures, IT support services firms are expected to increase turnover in 2023 compared to 2022’s...
Article updated 19th June 2023 Latest research shows that the number of businesses sold in the UK is at record levels. And even though there may be financial uncertainties, strong businesses continue to attract buyers. The strength of the business’s sector is a key aspect for business buyers. IT support and telecoms businesses are in...
Article updated 19th June 2023 No matter where you are in the world, the types of people who buy businesses are, typically, the same. And those looking to acquire companies tend to fall into four categories. While the type of buyer varies according to the size and nature of the company, the four categories are:...
(Updated February 2023) It’s wrong to think that business owners only sell companies when they are in trouble. In fact, the best time to sell is when a business is doing well. Business owners should be considering selling when the company is at the top of its game and has room for growth. In the...
Have you ever wondered how much your ICT business is worth? Hornblower specialises in the sale of IT support and telecoms companies and we would very much like to share our knowledge of the sector with you. We have therefore prepared an “E-tutorial” specifically for IT support and telecoms businesses. The first edition is entitled “Why would you...