Prepare your Business before you sell

Blackthorn Capital was recently formed by the merger of Origin Corporate Finance (one of the leading M&A Advisors in Ireland since 1999), Oregan Financial (Personal Financial & Wealth Advisors) and Grant Reddy Fitzgerald (Tax Advisors) and brings together 3 experienced teams of Advisors to offer clients a multifaceted approach that gives a full 360-degree view of Financial Transactions. As Dermot Grant, Director Corporate Finance said, This multi-disciplinary approach enables us to offer clients a far greater range of expertise covering all aspects of a transaction for the benefit of clients. In an M&A context it means as well as Corporate Finance services we offer advice on the deal taxation structure, due diligence, negotiation, funding and related wealth management issues that may arise for the vendors.”

 “When you do a deal it’s not just about selling the business it’s usually a wider issue for shareholders. Because our multidisciplinary team provides a 360-degree view of the transaction and we can examine all of the options. Our clients are not getting piecemeal advice instead they are offered a holistic service. To date, we have advised on over 80 completed M&A transactions and we believe that there is not much we haven’t had to deal with across these ranging from large corporates to smaller SME’s transactions and including many typical family owned business’."  

Pre-Sale Review

He reminded us that up to 50 percent of private business sales have difficulty finding a buyer or fall through before reaching completion. “There are many reasons for this but it is very clear that far too many business owners try to sell when they are not fully prepared. The legal structure also requires careful consideration and expert input.  You may need to review the legal structure of the business and depending on circumstances you may need to legally clarify assets ownership, subsidiaries, group structure etc".

Similarly, taxation is another area where expert input is needed.  Grant said, “The potential tax liabilities on the sale of business need to be calculated and if necessary re-structuring measures can be put in place to minimise tax and take advantage of reliefs. Don’t rush into a sale, is Grant’s advice. “Take the time to determine likely purchasers. Is there a possibility of an MBO/ family buy out /strategic purchase/private equity or would you sell to a competitor?”

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