Sourcing a business
There are a number of factors which, if present, make a good case for a private buyer to be able to effect the purchase of an SME business. Some of these include:
- A business which has been for sale for over 6 months – these businesses have often, by this point, exhausted the idea of a trade or private equity sale and might be more likely to welcome an approach by a private buyer.
- A solid balance sheet, typically with over £250,000 net asset value – this will give funders some comfort around assets which can be leveraged in the context of providing funding for the business.
- A retirement sale – an owner who is approaching or over traditional retirement age is more likely to be realistic about price and structure of an offer to buy the business.
- A business where the owner might consider