Despite the downturn, or maybe because of it, many business owners will still be considering when they might leave the business and either retire or start another one!
The best deals are always those that have been carefully planned over a relatively long time – at least a year, more often three or four years. It’s not just about how good your business is, it’s about how good it might be in future – the opportunity for the purchaser. You and your advisers have to understand what is important to any potential buyer – and they may have very different agendas.
Managing an exit is very time consuming and – we would say this of course – your best decision may be to appoint appropriate advisers early on, agree the objectives and leave them to it. You need to concentrate on making certain there’s still a saleable business at the end of the process, so choose your advisers carefully and then let them drive the transaction to a successful conclusion.
Friday 21 November 2008
The Snowball – Warren Buffett and the business life
This account by Alice Schroeder of the life and times of perhaps the best known of all investors is perhaps timely and will make interesting reading for any business owner.
Buffett always appears to be betting against the trend – as his recent multi-million dollar investment in Goldman Sachs demonstrates and when he famously avoided getting sucked into the dot-com bubble at the turn of the century.
It’s a fascinating book, particularly at the present time, but it should be remembered that he is perhaps best known for his views on the wisdom of investing for the long term and that he has recently given most of his wealth to the Bill and Melinda Gates foundation. Warren Buffett is definitely a one off – and this is a valuable book for anyone interested in business or investment.
Buffett always appears to be betting against the trend – as his recent multi-million dollar investment in Goldman Sachs demonstrates and when he famously avoided getting sucked into the dot-com bubble at the turn of the century.
It’s a fascinating book, particularly at the present time, but it should be remembered that he is perhaps best known for his views on the wisdom of investing for the long term and that he has recently given most of his wealth to the Bill and Melinda Gates foundation. Warren Buffett is definitely a one off – and this is a valuable book for anyone interested in business or investment.
How to lead your firm through the recession
Understand where your business stands and how the sector is performing.
Act decisively – don’t get paralysed by fear, try and identify new opportunities.
Cash is king – it always has been and always will. Get advice to improve cash retention.
Focus on customers – cash may be king, but customers are also vital to success.
Be future savvy – don’t panic, try and plan for the upturn as well as survival.
Innovate – cuts in R&D may help short term cashflow, but again look to the future.
Invest – many companies will struggle, so look for acquisition opportunities.
Keep your staff happy – you may need their support if times do get hard.
Thursday 23 October 2008
Dire straits or opportunity – will your business survive the downturn?
Don’t let your business become a recession statistic. Many firms will fail in the next few years, but help is at hand for those prepared to think strategically and plan accordingly. Mercantile offers a range of support services for SMEs and it is only those that plan meticulously that will survive the current downturn. Take advantage of the experience and expertise available at Mercantile to ensure your business survives and prospers.
*Improved Cashflow
*Greater confidence
*Accelerated sales success
*Less pressure from creditors
*Greater confidence
*Accelerated sales success
*Less pressure from creditors
For a free, confidential initial discussion contact our MD now: 01480 830494 or andrew@mercantile-group.com
Free Guides
As part of the Mercantile ‘added value programme’ we are pleased to be able to offer two new ‘expert guides’ – available free on the website.
All you need to know about key financial ratios:
Easily monitor the health of your business with these financial KPIs
GP Margin, Net Profit, Debtor Days
Print your free copy of this guide here: Key Finacial Ratios
New Entrepreneurs’ Tax Relief:
Learn how to gain maximum tax relief for disposals and other relevant transactions.
Print your free copy of this guide here: Entrepreneurs' Relief
Thursday 16 October 2008
SME funding still available
The papers may be full of doom and gloom, but strong SMEs can still gain support from banks, angels and other investors for inspired expansion plans.
Only yesterday we secured £200k additional bank funding as part of a £500k package for a small acquisition and other capital expenditure.
The equity gap is real - most VC firms are only interested in £5m + deals, but lesser amounts are available for SMEs with a carefully focussed business plan and committed people in the business. Apart from anything else the high street banks are swamped with problems and struggling customers and are very keen to see well thought out expansion plans.
Only yesterday we secured £200k additional bank funding as part of a £500k package for a small acquisition and other capital expenditure.
The equity gap is real - most VC firms are only interested in £5m + deals, but lesser amounts are available for SMEs with a carefully focussed business plan and committed people in the business. Apart from anything else the high street banks are swamped with problems and struggling customers and are very keen to see well thought out expansion plans.
Alternatives to insolvency for SMEs
Bank no longer supportive? Accountants suggesting insolvency? Your worst nightmare?
It may seem that you've reached the end of your resources, but often formal insolvency can be avoided. Don't believe all you are told by a predatory bank! There are often credible alternatives even for those who think the end is nigh!
SME cashflow problems are usually caused by unexpected, outside influences and usually lead to a rapidly deteriorating relationship with the bank - always keen to lend in the good times, less so when trouble occurs - followed by a loss of confidence in the market and orders dry up.
A rapid assessment of the circumstances by an independent third party followed by ACTION to stabilise the position and create a rescue plan can often dramatically change the situation and avoid the need for formal insolvency.
Follow a live example and the steps necessary to survive by subscribing.
It may seem that you've reached the end of your resources, but often formal insolvency can be avoided. Don't believe all you are told by a predatory bank! There are often credible alternatives even for those who think the end is nigh!
SME cashflow problems are usually caused by unexpected, outside influences and usually lead to a rapidly deteriorating relationship with the bank - always keen to lend in the good times, less so when trouble occurs - followed by a loss of confidence in the market and orders dry up.
A rapid assessment of the circumstances by an independent third party followed by ACTION to stabilise the position and create a rescue plan can often dramatically change the situation and avoid the need for formal insolvency.
Follow a live example and the steps necessary to survive by subscribing.
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