This session looked at the key deal considerations and the sort of values firms are achieving.
- Definitely more buyers than sellers in the market place.
- Prices feel high compared with other industries.
- Finding quality is the hard part.
- CIPs have potentially made firms more attractive for acquirers regarding transition process.
Key issues and challenges:
- Cultural fit is key to any deal.
- Finding quality firms at the right price.
- Dealing with legacy issues.
- Impact of MiFid II on valuations regarding ‘Duty of Care’ if you are receiving income from the client.
- Cost of doing an acquisition dictates a minimum size and hence there are less of these firms.
Conclusions and solutions:
- The acquisition market place is active and will remain so over the next 5-8 years as ageing business owners look to exit.
- Have clarity on why you are looking to acquire.
- Transition process is key to embedding a deal and making it successful. The hard work starts after the deal is done.
- Look for cultural fit first.
Expert: John Chapman - Owen James
Facilitator: Martyn Laverick - Soprano Consulting