Business Exit Insights

CapEQ insights | M&A market outlook 2024 | when to buy a business

M&A Market Outlook: Trends and Strategies for 2024

In today’s rapidly evolving business landscape, mergers and acquisitions are emerging as a vital strategic lever to navigate for CEOs to navigate the seismic shifts in technology, sustainability, and consumer demands. Although the number of companies changing hands fell 27% in 2023 – a steeper decline than the pandemic year of 2020 – recent indicators …

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How to sell a business: Warranties and indemnity | CapEQ

Demystifying business sales: Warranties and indemnities

Approaching the end of a business sale process may bring thoughts of celebration, but acquirer protection is a top concern for legal teams. After due diligence, buyers use warranties and indemnities to fortify their position against post-deal surprises. Warranties vs. Indemnities: Unveiling the Distinctions Warranties affirm your business’s health, vouching for truthfulness, while indemnities commit …

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How to sell a business: earnouts and deferred payments

Decoding Earnouts and Deferred Payments for Business Owners

While payment delays mainly benefit the acquirer, it can also be deployed as an incentive for the seller, offering an additional payout if the business exceeds expectations. Discover the hidden potential in your business sale and learn how to avoid potential traps, such as ceding excessive control to the buyer. Congratulations, you’ve successfully sold your …

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Business sale process explained | CapEQ

Understanding the Business Sale Process: Your Ultimate Guide

You’ve made the decision to embark on the journey of selling your business. But what does the business sale process actually look like, and what can you anticipate along the way? In this insightful guide, we provide a high-level overview of the three key phases that characterise almost every successful business sale. Phase 1: Preparation …

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How to value a business | CapEQ M&A advice | company value

How much is your business worth?

At the heart of your business sale journey lies a fundamental question: how much is your company really worth? In this comprehensive blog, we delve into the intricate landscape of M&A, shedding light on the key factors that influence business valuation, including financial health, strategic fit, and scarcity value. The Intricacies of Business Valuation Financial …

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How to sell a scale-up business | CapEQ

Roadmap to exit – Scaling Up Your Business For Sale

Recent studies have shown a few trends that should perhaps worry CEOs. Firstly, two-thirds of the fastest-growing companies fail. You might think that reaching hypergrowth status puts you on the inevitable path to success. If only it were that easy. Other research suggests steady-growth businesses tend to do better in the long-run than their faster-growing …

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Mistakes to avoid when selling a business

12 mistakes to avoid when selling a business

Few business owners get everything right first time they sell a company. Common mistakes include setting unrealistic expectations around price or timescale,  misjudging market appetite, or going it alone without advisors to provide professional support. Here’s our take on the most common pitfalls.  I’ll sell my business on my own Who would learn to drive …

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Earnouts

Be aware of anyone who doesn’t start by explaining the risks and pitfalls, such as accepting large earn-outs without exploring the inherent risk. We can all get carried away with a high Enterprise value. The devil is in the detail.

Emotional intelligence in M&A

Read the room: Emotional intelligence in M&A

Whether it’s called people skills, empathy, or self-awareness, emotional intelligence is now firmly established as a critical component of business success. Hard to measure but easy to recognise, a team with high EQ is better equipped for the emotional rollercoaster of a business sale. For most founders and entrepreneurs, selling a business is an intensely …

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You’re thinking of selling (or exiting) your business

You’re thinking of selling (or exiting) your business

YOU’RE THINKING OF SELLING (OR EXITING) YOUR BUSINESS Great. ‘Can I sell my business?’ – and ‘How do I sell my business?’ are two of our favourite questions – because we have the answers. Making company sales work smoothly, effectively, and profitably is the backbone of what we do. We recognise that selling and handing …

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Delivering the business sale (leaving no stone unturned)

Delivering the sale (leaving no stone unturned)

Delivering the sale (leaving no stone unturned) So how do we go about shaping your business for sale? There is no single model: we always create a bespoke approach, tailored to your specific needs, which addresses: Timing: we give you market-based fact driven advice on when to approach the market. This combines new research with …

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Who to trust – and why you should say no - Mergers and Acquisitions

Who to trust – and why you should say no

Ask any shareholder who has successfully sold their business, or acquired another, to state the most important aspects of the transaction. Invariably they will mention trust: trust in their advisors and trust in the counterparty. Without this high level of trust, it is almost impossible to complete a transaction. Trust is the bedrock of relationships. …

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The add-back is only as good as its justification - Mergers and Acquisitions

The add-back is only as good as its justification

The Add-Back is Only as Good as Its Justification we take time to make sure we get the balance right. Especially during these unprecedented times For buyers and lenders to accept these “add-backs” into their valuation and underwriting methodology, add-backs must be reasonable, well-documented, and defensible. We recommend that business owners track the impact that …

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This business is my life! I can’t imagine my life without it!- Selling your business

This business is my life! I can’t imagine my life without it!

This Business Is My Life! I Can’t Imagine My Life Without It! We all know business owners whose belly fires have gone cold and whose animating goals have grown stale. Nonetheless, they hang on to their businesses because they cannot imagine life without going to work. We also know owners who remain energized and involved …

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Has covid killed your passion in your business? - Mergers and Acquisitions

Has covid killed your passion in your business?

From cutting global emissions, sparking a baby boom, killing off flu, or government scientists becoming household names – the Covid pandemic has had some unintended consequences. But for most business owners, the consequences are darker: with rapidly changing business models, political uncertainty, and huge financial pressure causing stressful days and sleepless nights. The evidence is …

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Using a trustworthy M&A Team - Selling your business

I Don’t Need a Deal Team to Help Me Sell My Business

It is surprising how many business owners think they can save on a deal team. While it may seem tempting to save the fees, it has been shown that having a trusted advisor like CapEQ on your transaction more than pays for itself, and generates an average of 20% more transaction value. Additionally, having the …

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