6 Things to Consider Before Selling Your Business

Despite global macro uncertainties, Irelands M&A (merger and acquisition) market is improving, with both buyers and sellers finding it easier to complete attractive deals in 2017. This increase is due to a number of factors: Improved banking environment, healthier companies and significant increase in additional funders coming on to the market. Below are a few tips to assist in maximising the outcome of any transactions in 2017.

  1. Assemble your selling team – A lot of time and effort is required preparing a business for sale, conducting detailed review of market, pricing analysis and assessment of structuring and tactical issues. The time involved in the sale process must not distract staff from their normal course of business, as any deductions in financial performance may lead to a deduction in sales price.
  2. Focus on Targets – Although this may seem like an obvious task, it is critical a business spends time analysing objectives prior to the sale. These may include considering whether you intend to sell the whole business or part of the business and if you and your senior staff are to remain in the business.
  3. Working capital – Having a healthy working capital balance can lead to a significantly higher sale price.
  4. Recurring profits – Profits can be adjusted for non – recurring expenditure and income. The deduction of items that are deemed to exceptional costs can lead to a higher profit and a higher price for the company.
  5. Keep an eye on tax – Keep an eye on the ownership structure of the business well in advance of a sale to determine how the beneficiaries of the sale will be taxed. All potential tax reliefs should be investigated.
  6. Stay focused – A large amount of time can be needed to maintain the momentum of a deal. It is fundamentally important that all work streams are managed until a deal is completed.

It is critically important to plan for any potential sale, ensuring the process is carried out in a professional and efficient manner in an appropriate timeframe.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

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    Posted on September 23, 2017 by Jack Gahan

    iXBRL deadlines 2017

    The Revenue Commissioners have maintained the deadline of filing iXBRL tagged accounts within three months of the deadline for filing the corporation tax return for those companies that are required to do so in 2017.

    If any refunds are due, these will be withheld by the Revenue Commissioners until after the iXBRL tagged accounts have been filed.

    Late filing of iXBRL tagged accounts with the Revenue Commissioners may lead to;

    1. A surcharge on top of your tax charge
    2. Restriction of group loss relief which may be available

    What questions do you have?

    We are happy to help. Please post your comment below or call Nigel Mayberry, Director of Audit Services at Cooney Carey, on 01 677 9000. Alternatively, send him an email: nmayberry@cooneycarey.ie

    To keep in touch, connect with our friendly team on LinkedIn.

    If you found this article interesting, please share it with other businesses. 

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      Posted on September 21, 2017 by Nigel Mayberry

      What are the benefits of offering an internship programme?

      Does your company offer an internship programme? Have you considered the benefits of such a programme?

      I have heard several people say that that an internship programme is beneficial for the intern only, while for the company the time invested in the intern is wasted as the intern returns to college just as they become useful.

      While it is true that there are several benefits for the intern; paid summer job, gaining on job experience and a perspective on a potential future profession they may wish to follow, your company can benefit too.

      Let us share with you our experience

      As a company,  we are new to the idea of internships. While in the past we took on summer students their role has been of an office admin type. However, since 2016 we have actively sought interns who are doing a business or accounting degree and who are looking to commence a career in accountancy following college.

      In our first year, we took on one intern as we wanted to see how the whole programme would work out. While this approach means more time and effort is spent when recruiting the intern, we felt the benefits far outweighed the costs. As a consulting firm, we tend to have many employees on study leave/annual leave over the summer period and the presence of the intern allowed us to alleviate some of the work flow issues that can arise around this time.

      Another benefit for us was that we could use the internship programme as a recruitment tool for future employees. It allowed us to assess the intern in a work environment rather than in an interview setting. This enabled us to gain a much more rounded judgement on the person and how they would fit into the team.

      Our first venture into the world of internship was so successful that this summer we took on two interns. And we never looked back.

      So, we would highly recommend that your company considers such a programme. As our experience shows it can be beneficial for both the intern and the company.

      What questions do you have?

      We are happy to help. Please post your comment below or call Will Townsend (ACA, BBS (ACC), CMC), Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: wtowsend@cooneycarey.ie

      To keep in touch, connect with our friendly team on LinkedIn.

      If you found this article interesting, please share it with other businesses. 

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        Posted on September 14, 2017 by Will Townsend

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