FAQs

Selling your business can take anywhere from 5 to 12 months, depending on various factors. We've worked on projects spanning just a few months to over two years. Factors influencing the sale timeline include the quality of information available for an Information Memorandum, ongoing financial performance, market conditions, and the preferences of potential investors.

There are lots of things that can affect the value, like how well your team runs things, your financials, and even the size of the market you're in. We can use various methods like discounted cash flow forecasts or comparing multiples from similar market data to give you an idea. Let us know if you’d like a free business valuation.

We specialise in transactions for SMEs, focusing on businesses with an EBITDA of £1 million or more.

When you're thinking about selling your business, consider how much longer you want to keep working. Many buyers will ask you to stay with the business for a couple of years after the sale. If your business is consistently profitable, it's never too soon to go to market.

We don't limit ourselves to specific sectors, so it doesn’t matter whether you’re a SAAS business or own a business that specialises in renewable energy – we’d love to help.  Our focus is on using our knowledge and skills to achieve the best outcomes for our clients. Plus, location is no hurdle - we can work with businesses located anywhere.

We're here to guide you through a successful business exit. As an independent firm led by directors, we offer impartial advice tailored to your long-term goals. Our role includes advising on preparations, guiding valuation and timing, crafting the equity story, researching prospective buyers, leading negotiations, and providing unwavering support and project management throughout the entire process.

With LockDutton, you get a dedicated team committed to your success every step of the way. We ensure no conflicts of interest, with all directors actively involved in every transaction. Your business matters to us personally, and we project manage every aspect of the transaction from start to finish. Plus, you'll have access to experienced professionals with the right skills and knowledge, as well as an extensive network of quality contacts. Our proven track record, supported by exceptional client references, spans various industry sectors including manufacturing, technology, and business services.

We handle every aspect of your business sale with the utmost confidentiality. This includes carefully controlling the flow of information, ensuring all parties sign non-disclosure agreements, and customising the approach to your specific situation. Together, we determine what information is shared and when, starting with a ‘no-names’ teaser that provides enough detail to pique interest. Whether it's a targeted approach with one buyer or a broader auction, we will tailor the process to meet your exact need.

Management buy-out (MBO), management buy-in (MBI), and Buy-in Management Buy-Out (BIMBO) are variations of transactions where:

• MBO: The existing management team buys the business
• MBI: New management is brought in to acquire the business
• BIMBO: Both the existing and new management teams collaborate to purchase the business.

Absolutely! At Lock Dutton, we've successfully facilitated the sale of minority stakes for business owners and management teams, using our network of financial investors and expertise in the process. This strategic move can bring in much-needed capital for growth or working capital, while allowing existing shareholders to realise value from their stake. The process typically requires an investment from a private equity firm, a venture capital trust (for new money) or a family office. A partial sale not only provides cash liquidity but also maintains future growth potential. Plus, bringing in professional investors can propel the business forward and open up opportunities for new management or succession planning.

In most cases, you'll receive about 70% of the payment on the day the sale is completed. Then you'll get another 15% after one year and the final 15% after two years.

When it comes to taxes on the sale of your business, it's essential to consider various factors, including the structure of the sale, the type of business entity, and your individual tax situation. Taxes can vary significantly based on these factors, and it's crucial to consult with tax professionals to understand your specific obligations. We can connect you with experts who specialise in business sales taxation to ensure you have the guidance you need throughout the process.

An Earn Out means the seller gets extra money in the future, but only if the business hits certain financial goals, like reaching a specific EBITDA target. Deferred Earnings on the other hand are payments made to the seller on agreed-upon future dates, without any financial performance requirements.

Getting started is easy! Simply reach out to us via phone or email, and one of our experienced directors will be happy to chat with you. We'll discuss your goals, outline the process, and answer any questions you may have. From there, we'll work together to create a personalised plan that meets your needs and sets you on the path to success.