The Devil is in the Detail

The Devil is in the Detail

The Devil is in the Detail 1650 730 H&Hendricks

Despite the challenges faced by most businesses over 2020, transaction multiples have remained surprisingly unaffected by Covid-19.

In some instances, where a business has been able to demonstrate an effective management response to the pandemic, and present credible recovery plans, company valuations have increased above pre-pandemic levels.

Whilst the appetite for M&A has not waned over the last 12 months, there has been a notable shift in the allocation of risk to sellers by way of more rigorous due diligence, novel earnout structures and stringent non-negotiable seller warranties. This has eroded bargaining positions for acquirees and equally increased uncertainty on the final value of an agreed transaction.

To ensure that business owners are not at a disadvantage during any future sale negotiations H&Hendricks recommends allowing at least two years of planning and preparation ahead of tendering potential suitors. This time must be spent wisely with particular focus on:

H&Hendricks specialise in helping business owners to increase the value of their companies and prepare for sale. Even if you are not currently considering selling your stake, there is often significant scope to maximise your company’s value, increase profit and cash generation, and improve its overall attractiveness to future buyers.

Simply finding out what your company is really worth is often the first step to ultimately realising its true value.

Maximising Value By Design™

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H&Hendricks LLP
Chartered Accountants & Business Advisors
33 St James’s Square, St James’s, London SW1Y 4JS
020 7873 2247 | enquiries@hhendricks.co.uk

H&Hendricks LLP is a Limited Liability Partnership registered in England and Wales under number OC428528. A list of members names is open to inspection at our registered office at 3rd Floor, 120 Baker Street, London W1U 6TU. H&Hendricks LLP is a regulated member firm of the Institute of Chartered Accountants in England and Wales.

© H&Hendricks LLP 2021. All rights reserved.

H&Hendricks LLP
Chartered Accountants & Business Advisors
33 St James’s Square, St James’s, London SW1Y 4JS
020 7873 2247 | enquiries@hhendricks.co.uk

H&Hendricks LLP is a Limited Liability Partnership registered in England and Wales under number OC428528.  A list of members names is open to inspection at our registered office at 3rd Floor, 120 Baker Street, London W1U 6TU.  H&Hendricks LLP is a regulated member firm of the Institute of Chartered Accountants in England and Wales.

© H&Hendricks LLP 2021. All rights reserved.

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