BUYING A BUSINESS FAQS

SELLING A BUSINESS FAQS

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BUYING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • What sort of insurance do I need?

    Your main cover will be Professional Indemnity Insurance. This is a vital consideration for any business that gives professional and financial advice. You may also consider more generic insurance options such as Public and Employers’ Liability.

  • How long does it take to buy a business?

    This time will vary greatly depending on the business. There are multiple factors to consider; whether your offer will be accepted, whether you have the right sort of solicitor, and how long the Due Diligence process will take. We advise purchasers on every single step they can take to speed up the process.

  • Will there be a handover period?

    Some vendors may stipulate an ‘earn out’ period as a part of their stability measures during the transition of ownership, this can be enacted for upwards of 12 months and is ultimately up to the vendors discretion.

  • What is a SPA?

    This is a Share Purchase Agreement, a binding legal contract between two parties to facilitate a transaction.

  • What is an NDA?

    This is a Non-Disclosure Agreement, another binding legal contract. When signed, it confirms that the person who signed the contract will not divulge any confidential information. We use this agreement to protect the rights of business owners, and we may ask you to sign one before we provide you with any information on businesses that are confidential.

  • What regulation must I comply with when purchasing an insurance firm?

    You must supply the Financial Conduct Authority with a Section 178 notice to notify them of the intended change of ownership.

SELLING A BUSINESS - FREQUENTLY ASKED QUESTIONS

  • How would you appraise my business?

    One of our Associate Directors will visit you and will conduct a Business Sale Consultation. It is in this meeting where the fundamental details of the sale project will be agreed. During this appraisal, the Associate Director will conduct a market appraisal for your business, and a guide price will be set. This appraisal will be based on both the details of the business, and the current market climate for an Insurance Brokerages.

  • Will I need to reveal details about my business that I wish to remain confidential?

    When we market your business to clients interested in the insurance sector, we can do so confidentially, without revealing critical information.

  • My insurance business operates in a niche market, how will you target buyers effectively?

    We utilise multiple channels of communication to target specific groups depending on the unique nature of your insurance business. Our main channels for marketing communications includes the use of email marketing tools to create bespoke campaigns; dedicated research aimed at identifying appropriate buyers; the collation of an Information Memorandum (IM) for distribution through our Corporate Sales Process; in addition to matching your business specifications against our extensive database of registered buyers to identify and liaise with potentially interested parties.

  • What is an IM?

    An Information Memorandum is a formal sales brochure that is distributed to interested parties. The brochure provides them with a summary of your business, highlighting key selling factors along with a relevant information regarding your business. Ultimately, an IM provides an interested party with an enhanced overview and an informed insight into your unique opportunity.

  • Will there be a handover period?

    You may wish to stipulate an ‘earn out’ period for the purchasers as the business transitions under new ownership, the length of this period will be down to your discretion.

  • Is my insurance firm large enough to be placed on the market?

    Our market analyse has indicated that buyers in the insurance market require a minimum turnover threshold of £250,000 per annum and at least 2 partners or directors within the company.