At Benchmark International we always encourage that business owners to plan their exit in advance, as businesses which are ‘deal ready’ often attract the highest values.

The Chancellor, George Osbourne delivered his 5^th and final pre-election Budget yesterday with a continuing pro-business agenda underlying it.

George Osbourne’s 2014 Budget has picked up where its predecessor left off for business owners, many of whom should continue to benefit from the government’s commitment to ensuring Britain remains one of the world’s most hospitable business environments.

The majority of our clients instruct Benchmark International with the task of generating the highest possible value for their company. Although this is our primary objective in any case, it is fully understandable that an outgoing business owner would wish to secure maximum value for what is possibly their most significant asset – it’s human nature, after all.

Benchmark International is pleased to announce that one of its several recently completed deals, in which 4 Sight Consulting was successfully acquired by Wilde Analysis, has been selected by Finance Monthly’s editorial panel for their ‘Deal of the Month’ feature in the April edition of the magazine.

According to leading alternative assets industry data and intelligence provider Prequin, ‘dry powder’, typically defined as capital that has been committed to investment organisations which generally has to be invested within 7 years, has now reached record levels and is estimated to be just over $1 trillion.

The middle-market is expected to drive M&A activity through 2014 according to M&A news (www.themiddlemarket.com). In a poll of M&A professionals including strategic buyers, private equity investors, investment bankers / corporate finance professionals, accountants and other advisers, it was highlighted that middle-market M&A, which saw a flurry of deals in Q4 2013, will accelerate through 2014.

Whether a decision has been made to sell a business or not it is always beneficial to consider how a prospective buyer would perceive your business. Viewing the intricacies of your business from an outside perspective is typically the best way to identify areas within your business that could possibly reduce overall value upon an eventual exit.

In a recent study of the lower mid-market M&A landscape, conducted by CASS Business School, it was revealed that both deal values and volumes increased significantly in the second half of 2013.

As we have previously mentioned, many M&A professionals will look upon 2013 fondly as the year in which confidence returned to the market. Following a slow start to the year, multiples and volumes of deals increased significantly throughout H2 2013.

Today we received a very nice letter of gratitude for our help from Coronation Street following their success at the National Television Awards 2014 which took place last night.

Today we received a very nice letter from one of our recent clients, Chris Cowan of Arrow Supplies. Chris recently sold his company to an Internationally operating, Danish acquirer, in a deal which he was very pleased with.

An improving global economy coupled with decreasing uncertainty, large cash reserves and attractive acquisition and investment opportunities saw confidence in M&A return in 2013. A continuation of these factors promises to run through 2014 with increasing competitiveness for opportunities from corporates and private equity acquirers driving deal values back to pre-recession levels.

2013 will be looked back on as the year when confidence truly returned to the M&A industry. After a slow start, buyers returned to the market in droves in H2 2013, with a strong focus on quality opportunities, backed with unspent cash and driven by pent-up demand.

Chancellor George Osbourne has presented his 2013 Autumn Statement which, on the whole, can be seen as positive, especially for business owners. Economic growth forecasts have more than doubled from 0.6% to 1.4%, however, the Chancellor was evidently keen to emphasise that there is still a lot of work to be done and achieving a ‘responsible recovery’ will be done through the austerity plan that has granted the results to date.

November saw Benchmark International’s UK Corporate Finance Team; based at the company’s Greater Manchester head office, complete a record ten (10) deals.

Following three years of gradual growth we now seem to be firmly within the growth phase of the M&A industry lifecycle which is great news for business owners who have been putting off the sale of their business for a time when they are better placed to receive the best price.

Benchmark International’s UK team were the proud recipients of the ‘Deal of the Year (Sub £5m)’ award at the Insider Dealmaker Awards 2013, held at Manchester Central, Thursday 24 October 2013.

As M&A specialists we are asked one question significantly more often than any other . . .  ‘How much is my business worth?’ Most business owners expect us to give a definitive answer, however, the simple fact is that whilst a tentative valuation can be placed on a company, the acquirer and the manner in which it is sold largely determine its value.

It appears that many buyers are currently on the prowl, attempting to bag bargain acquisitions by exploiting business owners blinded by multi-million Dollar cheques and disadvantaged by a lack of advice from a seasoned M&A professional.

Benchmark International are proud to announce that we have been nominated for an award at Insider’s prestigious Dealmakers award ceremony which will take place on 24 October 2013 at Manchester Central.

Market factors inevitably play the most significant role in successful deal completions. Industry conditions, the state of local and global economies and country specific governmental legislative environments will largely effect demand and realized value upon any company sale.

As we have mentioned previously, a lack of spending within the Private Equity industry is creating significant pressure to invest. This is good news for business owners looking to exit their company as the huge sums of money available means that Private Equity firms chasing well performing businesses.

In a blog featured on Insider Media James Thornton, UK managing director of Benchmark International, discusses the lessons he learned from his recent move into the US market. (Click to view James blog on InsiderMedia.com)

External market factors play a huge role in determining the value of a company. Regardless of how well your company may be performing, the disappointing thing for business owners is that a variety of factors that impact the value of a business are beyond the control of the owner.

Whether you are seeking an exit from your business in the short, medium or long term, it is always beneficial to bare in mind how any potential acquirers will perceive your business. In order to attain the highest value it is important to get the company in the best possible shape. In doing so, business owners should endeavor to eliminate any potential issues which may arise come the due diligence process.

Within the company sales industry many brokers, investment banks and M&A companies often adopt a 'one size fits all' approach when it comes to structuring exit solutions for their clients.

Key points

We recently received a very nice letter from one of our current UK clients, David Brown of Skypark Secure Ltd (Skypark).

Occupying the position of Director and based out of our Tampa office, Clinton performs an extremely important role in ensuring our US-based deals come to fruition. Holding an exceptional degree of knowledge, experience and drive, we truly believe that Clinton is one of the most talented individuals currently working within our industry.

Grounded within the theory that the whole is greater than the sum of the individual parts, synergistic acquisitions are one of the most common forms of company sale.

The process of selling a business often comes with a high degree of misconception surrounding it. During our initial meetings with clients, these commonly held misconceptions often come to the fore and our directors are tasked with presenting the realities surrounding the process.

A host of internal and external factors need to be considered when selling a company in order to ensure that maximum value is received upon its eventual sale.

Throughout 2013 thus far we have witness a surge of private equity activity within the middle market with firms seeking to expand their portfolio of companies with synergistic add-on acquisitions. According to leading private equity focused research firm Pitchbook, in excess of 50% of PE acquisitions were add-ons in Q1 2013.

From the early 1990s onward, China’s economic and business landscape has been in a constant state of evolution. As the country has adapted to the movement from a state system which largely depended upon command and control economics to a more open economic state the economic landscape has undergone vast changes.

As a business owner, there will be a variety of possible reasons for the eventual exit from your company, whether it be health, retirement, competition or many more. A question we face more than any other as company exit specialists is “what is my company worth?”. Well, the facts are that the answer to this question is affected by a vast number of external influences which all play their part in determining the peaks and troughs within the M&A industry life cycle.

Dealing with business owners day in day out we find it startling how so few have have a considered exit strategy in place. Many believe that when the time comes to retire or move on to something else, all will simply fall into place. The reality is far from that and due to external market factors, timing and planning is crucial in this decision in order to receive maximum value for what will most likely be a business owners most valuable and prized asset.

We are now almost two months into 2013 and we thought this would be a good time to analyze the trends we have seen thus far and make our predictions for the following 10 months. Well, to say we are pleased with what we have seen so far would be a gross understatement. Activity is soaring, well beyond what we could have expected, which is great news for sellers. In such an active market with heightened levels of demand for mid-market companies, owners generally receive high sale values due to the increased competition.

While not quite living up to high expectations, 2012 was a solid year overall in the global M&A market. The number of transactions was modestly below the all-time high reached in 2011, and announced dollar volume was slightly above the year-ago figure. The bellwether U.S. market, which accounted for 40% of deal activity and nearly half of dollar volume, marked an all-time high for transaction count while witnessing a moderate dollar volume decline. During 2012, positive forces such as well capitalized strategics and financial sponsors coupled with widespread credit availability were largely offset by uncertainties related to the  global economy, government fiscal challenges, and Europe’s debt troubles, causing many prospective buyers and sellers to defer decisions on potential deals. However, global dollar volume in Q4 2012 was almost 50% above the average of the first three quarters of the year and reached the highest level since Q4 2007, possibly boding well for increased M&A activity in 2013.