Why you should consider buying a business
posted 4th January 2022
For many businesses, acquisitions can successfully secure future growth. The GS Verde Group supports clients from the very start of the acquisition process, through negotiation, to deal agreement and beyond.
A total of 143 UK companies made acquisitions during 2021, a 49% increase on 2020 as the M&A market rebounded to unprecedented levels following the initial shockwaves of the pandemic. According to data platform MarktoMarket, these deals had an average EV/EBITDA value of 15.11x, compared to 10.22x the year prior.
With the new year and possibilities ahead, it is an apt time for businesses to consider the future and whether this involves an acquisition. Acquiring has several advantages compared to starting from scratch, as the groundwork to establish the business has been completed and its proven track record can make obtaining finance easier.
Furthermore, a market for the product or service will have already been demonstrated, there should established customers, a reliable income and a reputation to capitalise on and many of the initial problems will have been solved already.
An acquirer can draw on the valuable experience and knowledge of the business' existing employees, and the existing business plan and marketing strategy. But before embarking on this journey, it is important to establish a motive for an acquisition.
Guide to Buying a Business
Download our FREE guide to buying a business for all the information, tips and guidance you need when considering an acquisition.
A business acquiring a rival in the same market can grow its market share, becoming a bigger fish in a smaller pond without depending on organic growth. In a mature industry, removing a competitor can streamline supply, reduce buyer confusion and reduce marketing costs.
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Alternatively, purchasing a viable business to merge with another's operations can gain instant access to new markets, expanding into a new vertical more efficiently that forming an entirely new division specifically to do so.
Integrating a smaller business can allow an acquirer to increase its pitching ceilings, taking the business beyond the threshold of opportunity sizes and increasing its chances of securing lucrative contracts.
An acquisition of a business with a desired piece of software, a product or service can also reduce the long-term costs of paying for that technology. Acquiring a similar business can allow the owner a step back from managing operations, into a more strategic role, by utilising the management team of the acquired business.
Knowing where to begin the acquisition process and how to make the crucial decisions along the way can prove challenging.
The GS Verde Group provides specialist guidance across multiple disciplines from legal, finance, tax and communications providing comprehensive advice to all clients in a confidential, timely and cost-effective manner.
Able to act as your complete advisory team, we add value to your existing management team, saving you time having to manage several advisors and reducing the risk of delays and deals collapsing.
Guide to Buying a Business
Download our FREE guide to buying a business for all the information, tips and guidance you need when considering an acquisition.
Learn more about how to buy a business in our downloadable guide or contact the GS Verde Group for expert advice.
Recent Deals We've Advised On
Posted 19th August 2024
Posted 3 weeks ago
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Flotek Group Expands with Acquisition of Colbek Systems Ltd, Marking Their 12th Acquisition to Date
Flotek Group continues its growth trajectory with the acquisition of IT & Cyber provider Colbek Systems Ltd, solidifying its presence in the Midlands and paving the way for future expansion.
Posted 14th August 2024
Posted 4 weeks ago
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GS Verde acquire Anderson Shaw Corporate Finance
The GS Verde Group, a UK & Ireland based dealmaking business, has expanded with the acquisition of West Midlands based Anderson Shaw Corporate Finance.
