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
Fri 13th March 2015
Review your ICT service contracts to realise their full value
You may have noticed that our ongoing mantra is that the value of your ICT business lies predominantly in your service contracts. They are your crown jewels so it pays to make sure they stand the test of time. 1. Review your contract documentation Ensure that your client, supplier and employee contracts as well as...
Fri 27th February 2015
5 rules of financial management that will increase the value of your ICT business
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 paramount to provide them clear financial information so that they can make their best offer. 1. Forecast your next year’s...
Fri 13th February 2015
3 key objectives for developing your ICT business’ operational team
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...
Fri 30th January 2015
5 top tips on Sales and Marketing to maximise the value of your ICT business
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 together your sales and...
Fri 16th January 2015
How to maximise the value of your ICT business?
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...
Fri 09th May 2014
Value of service contracts for ICT businesses
The value of service contracts: are longer term contracts worth more than short term, 30 day notice, contracts ? In this E-tutorial we deal with the value of support contracts for ICT businesses. The revenues of an ICT business are typically divided into the following revenue streams: support contracts, management services, ad-hoc projects and hardware/software...
Fri 21st March 2014
The hand-over and your involvement post sale
How long will you remain involved in your ICT 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 propose. We will...
Fri 28th February 2014
Deal structures to optimise the deal value
In the last few editions, we have looked at two valuation methods which give a headline figure based on a multiple. However the value you obtain will be determined to a large extent by the type of deal structure you agree with a buyer. Whilst being paid 100% of the deal value on completion would...
Fri 07th February 2014
Multiple of Turnover Valuation for IT support and telecoms businesses
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...
Fri 24th January 2014
Multiple of Earnings Valuation for IT support and telecoms businesses
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...
Fri 10th January 2014
How to value your IT support and telecoms business?
It is important to remember that the true value of a business is where the balance is struck between what a buyer will pay for it versus what a seller is prepared to sell it for. The value of any one business will be different for each buyer and the type of buyer they are....
Wed 18th December 2013
What would potential buyers of your IT support / telecoms business be looking for? Where is the value?
Buyers of almost any type of business are generally looking for the standard traits of a strong business, namely: Potential for growth A strong team that can manage the business day-to-day without the owner Client relationships not dependent on the owner Low dependency on a few top clients Good financial management systems in place However...
Fri 06th December 2013
Who would buy your IT support / telecoms business?
The type of buyer will vary according the size and nature of the company; however they generally fit into one of the four categories below: 1) Trade / Strategic buyers 2) Private equity with management buy-in 3) High net worth investors with industry experience 4) Entrepreneurs with spare cash of £200k to £1m In the...
Fri 22nd November 2013
Why would you sell your IT support / telecoms business?
The reason for sale is one of the first questions asked by buyers and it can have a major impact on the sellability and value of a business. If the reasons do not stack up, it can give the perception that the seller is selling because the business is in trouble. In deciding whether to...
Mon 11th November 2013
Introducing our E-Tutorial for IT support & telecoms business owners
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...