YOUR NEXT CHAPTER STARTS WITH A PLAN

Received an offer for your business? Get a financial review

Understand cash at completion, deferred payments and price adjustments before responding to an unsolicited offer.

Understand the numbers. Prepare the evidence. Decide with clarity.

ACA

Kishen Patel, BFP ACAICAEW Chartered Accountant

Put offers on a comparable basis

Two offers with the same headline value can have different cash outcomes. Compare cash at completion, deferred consideration, earn-outs and any rollover investment. Identify what is conditional, when money may be received and which assumptions sit behind each component.

Test what has to happen

We can model illustrative outcomes under different trading and payment assumptions. For an earn-out, that may mean looking at the profit definition, performance hurdle and timing in the proposed terms. Legal enforceability and contractual protections require advice from your solicitor.

A decision pack you can use

An agreed engagement can produce a financial comparison, questions for the buyer and a list of sensitivities to resolve. The objective is an informed decision, not a recommendation to accept the highest apparent number. Tax treatment, legal terms and your personal priorities should be considered with the relevant advisers.

BEFORE WE BEGIN

Your next-step
questions.
Answered.

What will I receive?+

We agree the deliverables before work starts. The scope will identify the schedules, analysis or preparation work you need and the information required from you.

Can you work with my existing advisers?+

Yes. We can scope the financial work around your accountant, solicitor and other appointed advisers, with clear responsibilities and your permission to share information.

MAKE YOUR NEXT DECISION A CLEARER ONE

Ready for the next step?
Let’s make it clearer.

Discuss my business sale ↗

A clear brief. An agreed scope. A useful next step.

CONSULT EFC · PRACTICAL GUIDES

Go deeper before your next decision.

Selling an SME: how to manage buyer due diligence questions

Build a useful due diligence question log, reconcile answers, protect confidential information and keep financial preparation aligned with legal and tax advice.

Read the guide ↗

Selling your business: make the owner handover credible

Prepare a practical owner handover before an SME sale: relationships, authority, replacement costs, transition evidence and the assumptions behind buyer expectations.

Read the guide ↗

What should I check before responding to an offer for my business?

Check what is being bought, whether the headline price is enterprise or equity value, how much is due at completion and which payments depend on future events. Ask what adjustments and assumptions could change the amount.

Practical example: Lay out completion cash, fixed deferred amounts and contingent earn-out payments in separate rows. Then ask how debt, working capital and deal conditions affect each amount. ICAEW: earn-outs in deals.

See the £1m offer example