Having recently facilitated the sale of The SkyJacks Group of Companies to Waco International, George New of Horizon Capital (Pty) Ltd., a corporate finance and asset management company specializing in the sale and acquisition of medium-sized enterprises, emphasised that the expertise required lies not only in the transaction process and management, but also in the ability to ‘match’ the requirements of both seller and potential buyer. “It is crucial that the synergies from the transaction results in improved efficiencies, product range diversification, market share improvement, the creation of a competitive advantage, all of which must end in improved profitability after the acquisition,” says New.
As businesses strive to increase their earnings through organic and acquisitive growth, in a somewhat challenging economic environment, there has been a definite increase in demand from buyers to acquire financially sound businesses. This increased interest in acquisition opportunities stems from the local market as well as abroad. With this increased demand, sellers are achieving favourable and realistic prices and it is proving to be a good time to sell.
When discussing the sale of a business the question often asked is “why use an intermediary?” New explains, “Our experience shows that owners that try to sell their businesses themselves mostly end up in an absolute quagmire, often resulting in a cancelled deal at the last minute or the seller ending up with a less that satisfactory arrangement. This often only manifests itself after the deal has been concluded. Selling a business can be a very complex and time consuming proposition with many legal, tax, accounting and regulatory matters to address. Further expertise is required to seek and identify the appropriate buyer for the business and then negotiating and structuring the most advantageous transaction for both parties involved.”
“The decision to sell could well be the most important decision a business-owner will make. It is vital that a qualified professional corporate finance advisor be appointed to guide you through the sale process.”
New further explains that Horizon Capital offers a full, turnkey solution for the seller – from assisting the owner to prepare the business for sale, conducting a valuation, preparing an Information Memorandum and discretely taking the business to the market and introducing it to qualified potential buyers. Very importantly Horizon Capital negotiates on behalf of the seller to ensure the optimal deal structure, and a fair price, is realised. New concludes that Horizon Capital also assists with the overseeing of the sale agreement and supporting documents, as well as the facilitation of the transaction payment.