The private buyer option
If your business has been for sale for a number of months but you’ve not had any serious interest from a trade buyer or a private equity firm and therefore, there is no deal in sight currently, you have a number of options:
- Leave it with the selling agent and see what happens…..
- Take it off the market
- Find a private buyer to purchase it from you…..this is where Valius can help you.
Valius works exclusively with buyers to enable private company owners to sell their business.
A private buyer can effect a transaction to purchase all or part of the current owner’s share capital.
If you are a “paternalistic” business owner, then arranging a transaction with a private buyer can be a very effective way of securing your legacy for the future.
A private buyer can enable an owner to depart on a phased basis, which means that it is an effective way of overcoming some of the common sell side considerations, such as:
- warranties often associated with the departure of a key shareholder;
- alleviating funding “roadblocks” by considering accepting deferred terms for the repayment of their sale proceeds;
- an owner wishing to sell only a part of their shareholding and remain involved (possibly in a Non Executive capacity);
- a full retirement sale is not of interest but selling part of the business now and being involved part time is a serious option
There are many facets a private buyer can offer to a seller which are often very important, including:
- Preservation of the owner’s legacy
- Retention of all staff and the existing site(s)
- Business as usual post completion
- Peace of mind
- A safe pair of hands to operate the business in future
- Development of the business from the foundations built by the owner(s)
Circumstances which might present for an existing owner of a business:
- An owner who is keen to retire or reduce involvement steadily but has no immediate successor
- Entrepreneurs with a desire to realise some value in their business in the short term but remain involved for a number of years
- An owner who has been in a sale process for some months but as yet, hasn’t found the right buyer but who still wishes to realise value
- An owner who recognizes the need to bring in an outside investor/director to improve growth potential and thereafter release value
- An owner who has an exiting fellow shareholder and therefore needs a replacement
