16/04/24
Whether you’re looking to expand your existing portfolio, grow your current concern, or take on a new venture, there are various factors to consider when buying a business.
According to recent studies, between 70-90% of mergers and acquisitions fail. To ensure your next business purchase is a success, it’s important to seek a holistic balance of legal, accounting, and business planning advice. This way, you can be confident the finances and forecasting align with your growth expectations, and the legal implications of acquiring a new business are also taken care of.
At CTT Accountancy, we are experienced in helping clients formulate business plans for new acquisitions. We take the time to get to know you, building a strategy that focusses on your financial and business goals while supporting a sustainable path to growth.
By working closely with our partners at CTT Law and CTT Private Client, we offer a unique service that provides accounting, financial, and legal advice under one roof, ensuring your business purchase is a smooth and stress-free success.
Here are the ways your accountant can help support you in making your next business purchase.
Financial Statements
Reviewing the target company’s financial statements is the best way to assess its financial health and performance. By doing this, your accountant can help you gain valuable insight into your acquisition using its balance sheets, income statements, and cash flow statements to produce a comprehensive report.
Due Diligence
Conducting due diligence is means of verifying the accuracy of financial information provided by the seller. With this information your accountant can assess potential risks and identify any hidden liabilities.
Accurate valuation
With information on the target businesses’ assets, liabilities, cash flows, and future earning potential, your accountant can determine the fair market value of the business to ensure that the purchase price is reasonable and justifiable.
Financing Options
At CTT Accountancy, we work closely with our IFA partners to offer clients insight into the various financing options available for the purchase of their acquisition. These include advice on bank loans, private equity investment, or seller financing. We can also assess the potential impact of these options on the company’s financial structure and cash flows.
Assess Tax Implications
By analysing the potential tax implications of the acquisition, including tax liabilities, available tax incentives or relief, and any tax structuring opportunities, your accountant can arm you with a tax-efficient plan from the outset.
Regulatory compliance
As well as assessing your acquisition’s financial health, your accountant can also carry out checks to ensure it is compliant with all relevant accounting standards, regulations, and legal requirements, sparing you any issues post-acquisition. At CTT Accountancy, we work closely with our legal partners to offer clients legal insight and support into business purchases and acquisitions, ensuring they can proceed with total confidence.
Integration Planning
Your accountant can help you assimilate your new acquisition with your current operations by formulating a comprehensive integration plan that ensures a smooth transition for merging accounting systems and processes, including Making Tax Digital.
In conclusion
Acquiring a new business can be stressful; it’s a big decision and requires multiple avenues of investigation to ensure you’re making the right choices for your current concern and your future goals. By using CTT Accountancy, you have access to a team of Chartered Accountants with a keen eye for detail and a wealth of experience dealing with a broad range of business acquisitions.
You also have the benefit of working with multiple industry professionals, including FCA-registered IFAs and legal specialists, so your potential concerns – be they legal, financial, or accountancy related – can all be addressed under one roof.
Using our combined expertise, we can ensure you next business acquisition is a smooth, stress-free process. To learn more, contact a member of the CTT Accountancy team today.
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