FAQs

You will be put through to one of our experienced team and we will initially ask you to engage in an informal, but confidential discussion over the telephone. This will give us the chance to understand your proposition and its requirements, appraise the project and provide you with some immediate feedback. At the end of this initial conversation, if both sides agree, we will suggest a follow up face to face meeting. There is still no commitment by you at this stage.

Depending on your requirements, some of the following questions may be raised during our discussion. Initially we need to understand in outline your opportunity and the reasons for your interest. All information will be treated totally confidentially.

The information we may need will vary on the type of transaction you wish to discuss:

MBO

• What does the business do?
• Operations?
• Markets?
• Management?
• Brief financials (historics and forecasts (if available))
• Current ownership?
• How far has the proposition progressed to date and who else is involved?
• Who is part of the team & their background?
• Do you have a business plan or some thoughts?
• Do you / the team have any personal money available to invest?
• Are there any specific timescales and what, if any, are key decision points?

MBI

• What is your background?
• Why do you want to acquire a business?
• What personal funding do you have available?
• Are there any other members of the team?
• What sort of business do you wish to acquire:
• Turnover?
• Sector?
• Location?
• Have you any targets in mind?
• Are there any specific timescales and what, if any, are key decision points?

Acquisition

• What is your existing company:
• Operations?
• Markets?
• Management?
• Brief financials & current funding status?
• Ownership
• Why do you want to acquire another business?
• What sort of business do you wish to acquire:
• Turnover?
• Sector?
• Location?
• Have you any targets in mind?
• Are there any specific timescales and what, if any, are key decision points?

Disposal

• What is your existing company:
• Operations?
• Markets?
• Management?
• Brief financials & current funding status?
• Ownership?
• Why are you thinking of exiting?
• Have you been approached by any companies looking to acquire your business?
• Are there any specific timescales and what, if any, are key decision points?

Raising Finance

• What is your existing company:
• Operations?
• Markets?
• Management?
• Brief financials & current funding status?
• Ownership
• What is the current funding and financial position of your existing business?
• Why are you thinking of raising finance?
• Are there any specific timescales and what, if any, are key decision points?

We would work with you from start to the completion (and beyond) to help deliver a successful conclusion of the project. Our specialist team at M3 Corporate Finance has the expertise to provide you with any or all of the following, ensuring a successful transaction:

• Obtain further information about the business and familiarise ourselves with the operations and the current and projected financial performance.
• Confirm the overall feasibility of the MBO by carrying out some financial modelling on possible deal values and structures.
• Assist with or lead the negotiations with the vendor and its advisors to determine mutually agreeable pricing and deal structure leading to signed Heads of Terms.
• Assist in the development of a comprehensive Business Plan that accurately captures the unique characteristics of the proposed transaction. Prepare a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability. Ensure that the Business Plan answers the anticipated questions which funding sources are likely to ask.
• Provide corporate finance support and advice and to project manage the proposed acquisition. This will include working with and co-ordination of the vendor and other professional advisors to ensure the process runs smoothly and within agreed timeframes. This will also involve working with your solicitors and other advisors, and assisting in their appointment if necessary.
• Lead or provide assistance in finding and matching potential sources of finance with the needs of the business. Establish a "shortlist" of potential funders after considering the criteria, and take responsibility of ensuring that the investment proposition is communicated to prospective lenders. Lead or assist in selling the proposition and, once interest is generated, crafting a deal to meet the requirements of the business and satisfying the needs of the funding sources. Support with the presentation of the Business Plan to potential funders.
• Obtain written conditional offers from the funders setting out the structure of the proposed deal. Having evaluated each offer received, lead the initial negotiations as your adviser with the funders, advising you on the most suitable. Having chosen the preferred funder, lead the detailed negotiations with them.
• Lend support as required with negotiations with potential finance sources to determine mutually agreeable deal structure and associated paperwork.
• Assist you in dealing with further enquiries arising during the due diligence and legal process. Lead or assist in any further negotiations with the vendor.

We would work with you from looking for a business to the completion (and beyond) to help deliver a successful conclusion of the project. Our specialist team at M3 Corporate Finance has the expertise to provide you with any or all of the following, ensuring a successful transaction:

• Provide acquisition search work using our databases, contacts and research facilities to identify suitable acquisition targets and to present our findings to you for assessment.
• Obtain further information from the Target's advisors to assist in this assessment.
• Arrange to meet the Targets with you to see the business first hand and to meet the shareholders or parent company to determine their objectives and aspirations and agree a way forward.
• Work with you to assess each opportunity, obtaining additional information as necessary.
• Assist with or lead the negotiations with the vendor and its advisors to determine mutually agreeable pricing and deal structure leading to signed Heads of Terms.
• Assist in the development of a comprehensive Business Plan that accurately captures the unique characteristics of the proposed transaction. Prepare a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability. Ensure that the Business Plan answers the anticipated questions which funding sources are likely to ask.
• Provide corporate finance support and advice and to project manage the proposed acquisition. This will include working with and co-ordination of the vendor and other professional advisors to ensure the process runs smoothly and within agreed timeframes. This will also involve working with your solicitors and other advisors, and assisting in their appointment if necessary.
• Lead or provide assistance in finding and matching potential sources of finance with the needs of the business. Establish a "shortlist" of potential funders after considering the criteria, and take responsibility of ensuring that the investment proposition is communicated to prospective lenders. Lead or assist in selling the proposition and, once interest is generated, crafting a deal to meet the requirements of the business and satisfying the needs of the funding sources. Support with the presentation of the Business Plan to potential funders.
• Obtain written conditional offers from the funders setting out the structure of the proposed deal. Having evaluated each offer received, lead the initial negotiations as your adviser with the funders, advising you on the most suitable. Having chosen the preferred funder, lead the detailed negotiations with them.
• Lend support as required with negotiations with potential finance sources to determine mutually agreeable deal structure and associated paperwork.
• Assist you in dealing with further enquiries arising during the due diligence and legal process. Lead or assist in any further negotiations with the vendor.

As an owner managed business we can be flexible in terms of how we charge for our work. We tend to work mainly with a modest upfront fee and our main fee being contingent on a successful outcome. All fees are negotiated and agreed in advance, so there are no hidden costs or surprises. We can charge on an hourly or day rate basis but most clients prefer the success related fee.

You will find our rates highly competitive and offer excellent value especially given the experience in the team. Before you commit to us we will be able to give you an estimate of all the costs involved in executing your project, including other professional fees (e.g. lawyers).

In the unlikely event that we cannot achieve a successful transaction, success fees would not be payable.

The work will be carried out by one of our experienced partners. We don’t believe in delegating work to juniors who are learning their role on your transaction and at your expense. In most cases two of our partners will be involved (one will lead it) to cover for holidays, etc. and to ensure your transaction progresses as required.

If you are looking to raise finance due to a short term problem then we will be able to make a quick appraisal and secure the necessary funds. However, if the problem is likely to be more long term, we would suggest a more in-depth review of your operations. In these circumstances we would construct various business models which will show how the business would be affected by implementing any changes.

Our experienced team are ideally placed to advise and secure funding required.

Transactions vary in time primarily due to not being able to put a time limit of the many negotiations that are required. However, as an indication MBOs will take four – six months, as will MBIs from finding a suitable target. Disposals should be planned upfront and we would always suggest planning for an exit at least six months ahead of when you want to start a disposal process. The disposal process will typically take three to six months depending on complexity. Corporate acquisitions can be completed in a matter of weeks from finding the right business and assuming it is being funded by existing funding. Normally, though three months would be a reasonable estimate.

Raising finance can be completed in less than a month if absolutely necessary but ideally, to ensure a proper and thorough process, three months should suffice.

Banks generally only provide funding and only recommend their own products. They are specialists in their particular field of funding, but they will likely not have the breadth of experience we have in our team at M3.

We provide all the tools and services you need to complete a successful transaction. We do not sell product. We provide independent professional help and resources that ensure our clients get the very best out of every project or transaction.

Your accountant probably advises you on audit, accounting, taxation and, maybe, due diligence. We don't pretend to be specialists in these fields although we do have experience in all of these areas. A corporate transaction such as an acquisition, sale or MBO is likely to be something you do once or twice in your lifetime. Therefore it pays to take specialist advice and most accountancy firms (excluding the multinationals) do not have specialists who focus purely advising on such transactions.

We will typically work alongside your existing accountants and shouldn’t be seen as a threat by them as we don't carry out audits and give tax advice etc.

The simple answer is "yes" and we have a track record to demonstrate it. Through our detailed research, we can identify overseas acquirers as readily as we can UK buyers. We will, from time to time, also use our international network of contacts built up over many years of doing this type of work, to make an approach or to identify potential acquirers in their region. However, we will always be your adviser and will manage the transaction throughout