Having recently facilitated the sale of 600 SA, the South African subsidiary of the UK based 600 Group PLC, to Eqstra Holdings Ltd, John Witter of Horizon Capital emphasises that it is vital that a qualified, professional corporate finance advisor be appointed to guide business owners through the sale process.
The expertise required lies not only in the transaction process and management thereof, but also in the ability to match the requirements of both seller and potential buyer. “It is imperative that the synergies from the transaction result in improved efficiencies, product range diversification, market share improvement, and the creation of a competitive advantage; all of which must result in improved profitability after the acquisition” says John Witter, CEO of Horizon Capital, a company that specialises in the sale and acquisition of medium- sized enterprises.
As the economy moves out of the recessionary period, there has been a definite increase in demand from buyers to acquire sound and financially healthy businesses. This increase in interest in acquisition opportunities stems from the local market as well as abroad. With this increased demand, sellers are achieving very realistic prices and it is now proving to be a good time to sell.
When discussing the sale of a business, the question often asked is “why use an intermediary?” John explains; “our experience shows that most business owners who try to sell their businesses themselves end up in an absolute quagmire, often resulting in a cancelled deal at the last minute or the owner ending up with a less than satisfactory arrangement, which often only manifests itself after the deal is concluded”.
Selling a business can be a very complex and time-consuming proposition, with many legal, tax, accounting and regulatory issues to address. Further expertise is required to seek and identify the appropriate buyer for the business and then to negotiate and structure the most advantageous transaction for both parties.” The decision to sell could be the most important decision a business owner will make and it is therefore vital that a qualified, professional corporate finance advisor be appointed to guide you through the sale process.
Horizon Capital offers a full turnkey solution for the seller – from assisting the owner to prepare the business for sale, conducting a valuation, preparing an Information Memorandum and discretely taking the business to the market and introducing it to qualified potential buyers. Very importantly, Horizon Capital negotiates on behalf of the seller to ensure that the optimal deal structure, and a fair price, is realised. Horizon Capital also assists with the drawing up of the sale agreement and supporting documents, as well as facilitating the transaction payment.
Please contact John Witter on 021 425 8586 for further information.
