Brabners Lancashire event highlights importance of market knowledge when selling a business

A strong understanding of mergers and acquisitions transactions, including what buyers are looking for, is key for entrepreneurs considering selling their business.

This was one of the key takeaways from Brabners’ latest Business Circle event held at the firm’s Lancashire office.

The invite-only quarterly group brings together like-minded business owners and entrepreneurs from across Lancashire, including Brabners clients and partners. Each session is designed to provide an open and confidential environment to share challenges and experiences, while building new relationships.

The event included an interactive masterclass on the mergers and acquisitions landscape from Ian Dawson, director and Hassan Ahsan, associate director from North West corporate finance advisory firm AMS Corporate Finance, including the key differences between trade sales and private equity and the pros and cons of each.

The firm specialises in deals between £5m and £100m and is led by a team which has completed over 200 deals with an aggerate value of £4bn.

Ian and Hassan claimed understanding not only the types of buyers, but also what they look for and how this was changing, was important to maximise the value of a sale.

Ian told attendees: “Trade buyers generally look for a range of factors when considering a business including growth acceleration, financial return and vertical integration. They will often pay a premium where money can be saved through synergies.

“Private equity will look for a strong financial return over a fixed term. Even when they buy a business, they have a focus on exiting and generally will not invest if there is not a strong management team in place. 

He added that different private equity houses had different preferences for sectors, however in general, professional services and accountancy businesses as well as ESG focused businesses were currently in-demand and said building an understanding of the market including ‘hot’ sectors could help business owners achieve the best possible result when selling a business, 

The pair also gave a brief overview of the Lancashire market, highlighting there had been a high volume of deals in October 2024, in advance of the new Labour government’s first budget which introduced a variety of changes to tax affecting business disposals.

The interactive event also included a discussion with audience members on key issues when selling a business such as integrating different cultures post-completion and the importance of choosing the right buyer or investor.

Brabners’ corporate team includes more than 50 experienced solicitors and legal professionals supporting businesses on a range of matters including business sales, acquisitions, buy-and-build strategies and employee ownership trusts.

Nikki Whittle is partner and the firm’s head of corporate in Lancashire.

She said: “The Business Circle gives senior business leaders and entrepreneurs in Lancashire the opportunity to make new connections as well as access to highly-regarded speakers on key issues. For many entrepreneurs, the ultimate goal is to sell, and Ian and Hassan’s overview of the different options and state of the market has received excellent feedback from our attendees. 

“We have a really strong and growing group of regular attendee business leaders who gain real value from the knowledge and high-profile contacts they make through the group. We plan to build on this momentum in 2025 and continue to grow it further.”

The next event will take place on February 25 at Brabners’ Lancashire office and will focus on employee engagement.