Tag Archives: Family Business

SME Values On The Rise

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Recent data indicates that multiples being paid for SME businesses is increasing. Clearly this includes a large range of deal sizes and different industry sectors, but this is excellent news for business owners considering their exit options. The Small and Medium Enterprises Valuation Index issued by the UK200 Group indicates the mean P/E (Price / Earnings) multiple was 9.6 at November 2015 compared to 7.3 at November 2014.

Achieving a successful disposal requires planning to ensure the business is well positioned to achieve its full value. In general the longer the length of time available to plan for a sale, the better the outcome. There are however a number of areas within a business which may only require a few simple changes, that in turn lead to a significant increase in the value achieved on a sale.

Expert advice should be obtained on the areas to consider when there is a relatively short amount of time available before selling. These simple changes can increase the overall value of the business without impacting on the day to day operations. When you consider that many businesses sell on the basis of a profitable multiple, a £1 increase in after tax profit equates to an increase in potential value of £9.60 based upon the above P/E average.

There are currently many trade buyers with cash resources, who are looking to make acquisitions. Furthermore there are debt and equity providers with funds that require lending and investing. The combination of these are leading to more potential buyers and so if you are thinking about your exit strategy, my advice is…

Get on with it.

Tim Mills – Corporate Finance Partner

Family businesses often give rise to issues and opportunities not found in other companies. The PM+M Corporate Finance team are hosting a seminar to provide you with valuable information and simple, adaptable methods to increase the value of your business, whilst overcoming family and non-family issues.

Date: Wednesday 20 April 2016
Time: 8am – 9am (breakfast will be included)
Venue: PM+M, Greenbank Technology Park, Challenge Way, Blackburn, BB1 5QB

To book a place on this seminar, please email seminars@pmm.co.uk or call the Marketing team on 01254 679131.

Helping Family Businesses Achieve Their Goals

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Running a family business can be challenging and it’s common for conflict to occur. Whilst family businesses are becoming more prominent and recognised as the ‘backbone of the UK economy’, they come with the risk of family dynamics interfering with the running of the business. Our expert team specialises in helping families build high performing teams through vision, creation and strategic planning to prepare the next generation for leadership and succession.

However, having your family there to support the business can be rewarding as well as challenging. The key to running a successful family business is balance; balancing family and business interests, which often requires compromise. It is often personality and emotions that cause conflict within a family business, making it essential to integrate succession and leadership plans.

Family businesses that are in transition from one generation to the other are often the ones that face conflict. Conflict can often escalate over time due to the root of the problem being ignored. Succession planning for a family business gives you peace of mind and having a plan in place lays down the firm’s direction for the future, giving security when handing over to the next generation.

As the North West Centre for Family Businesses, the experts at PM+M give advice and guidance in succession planning, vision and strategy, and our expert advisers are trained in conflict mitigation. PM+M has over 90 years of experience working with family businesses in the North West and we provide support every step of the way.

For more information on how to have a successful family business, come along to our FREE seminar on Tuesday 18 November (8am-1pm, breakfast and lunch provided) and hear from award-winning guest speaker Peter Roper, The Family Business Man.

To book your place on our FREE family business seminar, call 01254 679131 or email familybusiness@pmm.co.uk.

 

Would you like to win an iPad? Take part in our Family Business Survey 2014.