Buying
A Business

This can often be the most difficult part, particularly if you have no idea where to start. We can assist in finding suitable buyers using our company databases and other platforms.

We will advise you on what we think the target business is worth and draft non-binging heads of terms.

One of the first questions we help you answer is whether to buy the 'shares' or the 'assets.'

Buying shares means taking on the company as a whole, including its past risks and liabilities. An asset sale is often cleaner, allowing you to acquire specific business components like plant, machinery, or customer lists.

Because the legal and tax implications vary so significantly, The Law Society identifies this choice as one of the most critical steps in the entire transaction process.

Once potential buyers are found, it is essential you have an advisor that thoroughly assesses the business you are acquiring. This is often split between commercial, financial and legal due diligence. We project lead this process and work with your chosen solicitor throughout the process.

Professional financial due diligence is critical to validate the 'underlying' earnings of a target. According to ICAEW, this process identifies potential financial risks and hidden liabilities that could affect the final purchase price or the long-term viability of the acquisition.

If external funding is required, Gravitate have the network contacts and partnerships to ensure you are getting the best and most suitable funding for the transaction.

For SMEs looking to scale through acquisition, the British Business Bank highlights that 'Debt Finance' and 'Private Equity' are the most common routes.

From initial discussions all the way through to deal completion, we coordinate the entire process. That means identifying and approaching the right buyers, leading negotiations, overseeing due diligence, and working with legal and tax advisors. Our commitment is to keep everything moving while you stay focused on running the business.

Following due diligence we will often revisit the terms, particularly the price structuring initially agreed and assess whether this is still relevant. If not, we will work with the solicitors in the drafting of key documents particularly the Share Purchase Agreement (SPA), through to legal completion.