According to a recent report, more than 60% of board directors are willing to take on additional risk next year. A survey found that many directors’ appetites for risk has been boosted by a number of factors. These include the prospect of falling interest rates and the availability of more ‘distressed’ sales. There is also a ‘feeling’ that prices for takeover targets are dropping. This has made deals more attractive and affordable, particularly in the case of distressed purchases.
Having said this, the survey also shows that some 18% of directors expect to become more cautious. The main reasons for this apparent fall in risk appetite are inflation and political instability. Despite being prepared to consider increased risk, directors have particular concerns about tensions in the Middle East and Ukraine. There is also worry about the risk of recession in major global economies.
iBOSS Comment:
Whilst this item applies particularly to larger corporations, if you are considering business acquisition, especially if it is for the first time, then come and talk to us at iBOSS. We have broad experience of supporting both individuals and companies in this kind of project. Call Peter on 07770 866 955 for an initial consultation or e-mail him on peter@theiboss.co.uk.
The team at iBoss have increasingly become involved in projects that extend beyond their planning and advisory services. One recent example of this arose when we were approached by a Partner in charge of a specialist division within a prominent Law Firm. His employers offered him the opportunity to hive out his division, which was achieving annual billings of circa £4m, as it was decided that the service offering was one that the Law Firm, for strategic reasons, wanted to exit.
The Partner was keen to explore the opportunity but first wanted to ensure that this was a viable business opportunity. He also wanted to understand what terms could be agreed and what funding would be required for the new proposed Legal Firm. In order to be able to do this he engaged iBoss to prepare a Business Plan and Financial Forecasts. Once prepared, he discussed with two of the directors of iBoss how best to negotiate and structure a deal that would be acceptable to both parties. Fortunately with a willing buyer and willing seller the focus on the deal was not purely based on financial considerations but how a smooth transition of live client cases could be handled.
Once the Heads of Terms had been agreed the biggest challenge the Partner faced was how to set up the new business at the same time as he continued to run the existing division. In this respect the iBoss directors experience was such that they were able to become actively involved in setting up the new business, whilst the Partner continued his commitments to his existing firm.
Setting up a new solicitor’s practice has many challenges, not least of which is obtaining an offer of Professional Indemnity Insurance [PII], which is a pre-requirement, of applying for Solicitors Regulatory Authority [SRA] and SRA approval, which in turn is a pre-requirement of opening a bank account for a new solicitors practice. Both parties were keen to conclude a deal as quickly as possible, whilst the ‘regulatory’ matters were being dealt with and a plan was agreed to start the process of putting in the new place the infrastructure that would be required to ensure a smooth transition of clients cases.
Whilst one iBoss director focused on the ‘PII, SRA and funding requirements, the other iBoss director project managed the move to new office premises, IT software and hardware requirements, existing employee transfers, new staff recruitment and contractual requirements etc.
Consequently, once the PII, SRA approval and bank account where opened a successful completion of the ‘hive out’ was achieved very shortly afterwards. The practice was able now to ensure that no client was impacted by the agreement and a smooth transition was achieved to the delight of the both exiting Partner and the Law Firm.
This was an unusual project in so far as it required a number of component parts being put together but not necessarily in what would be regarded as the normal order. The focus was to make the opportunity work for the exiting Partner who was very excited about running his own business and he was very pleased with the outcome.
If you have a project whether straightforward or one that may require a more ‘out of the box’ approach, then the team at iBoss would be happy to have an initial discussion on a no fee/no obligation basis.
For more details of this project, contact Phil Jones on 07876 503830 or e-mail him at phil@theiboss.co.uk . For information on the full range of services that we offer visit our web site at www.theiboss.co.uk or give us a call on 0800 093 5240.
In the Daily Express, a report from Royal Mail suggests there was a 7% increase in new companies launched during the lockdown. The research indicates there were 315,000 company start-ups between March and July – fuelled by a boom in e-commerce businesses as consumers shifted to online shopping.
From April to June, Companies house recorded 176,000 start-ups, the highest number for any second quarter on record. The question is, how many of these companies will survive?
With the end of the furlough scheme getting closer and closer and more businesses making more and more people redundant, the new ‘entrepreneurs’ are likely to continue to rise for some time.
Get a business mentor to help your new startup
Even with the best professional advice, there is no guarantee that your ‘business dream’ will be a success. However, with good advice from experienced people such as a business mentor who have already walked that long road may help. A business mentor will give you an honest appraisal of your chance for success. They can advise whether you are seriously risking your life savings or redundancy package on an ill-fated idea. Conversely, however, your chosen professional advisor with a proper business plan in place may not only agree you have the potential beginnings of a successful business; but could show you where the cost
savings could be. That initial advice may stretch your initial investment at the critical start of your business.
We were pleased to be asked to take part in the NLive radio production on Tuesday night at 7-9pm. We spoke about how our business mentor support services help local SMEs. We also got to listen to some great music too, so Listen (or Listen Again) on www.nliveradio.com right now – or catch up with the interviews at https://anchor.fm/nliveopen4business
Small business success report shows ‘it’s good to talk’
iBOSS loves to give free business advice to all our clients. This is our advice today!
A report in Business and Money highlighted that Allica Bank had commissioned a new study, the SME Guide to Success, revealing that SMEs’ prospects of success depend to a large extent on engagement and interaction with external institutions and resources. Chris Weller, chief commercial officer at the business lender, remarked: “In the UK there is a wealth of external advice and support for small businesses and we urge every company out there to tap into the external resources around them.”
iBOSS free business advice Comment:
There is no doubt that business networking groups like The Business Community and Collaborate as an example in the East Midlands region, are a rich source of information. These Groups help to promote business whilst also giving tremendous support to each other. These groups often have professional business advisors who can also provide direct help to new business start-ups or established companies that in these difficult times may very well need a fresh approach or are even considering remodelling of their business. Although business owners may have excelled in their given industry, they still in these unprecedented times may need a business review on how to maintain or better still, increase business profit.
Contact us today if you would like to join the next meeting or get a FREE business advice consultation from us!
In the Daily Express, a report from Royal Mail suggests there was a 7% increase in new companies launched during the lockdown. The research indicates there were 315,000 company start-ups between March and July – fuelled by a boom in e-commerce businesses as consumers shifted to online shopping.
