Businesses may have different values!

A proprietor of a small new venture company was introduced to us by a professional contact. The proprietor wanted to know if we could help raise additional finance for an overseas project.

Whilst considering options we identified that a large multi national group could be interested in the new company.

The net asset value of the company was minimal and therefore an initial offer of £15,000 was eventually received by the multi national.

We further investigated the  potential value to the multi national and it led us to believe the intellectual property  was much more valuable to the multi national than first thought and way beyond our clients expectations.

The client therefore asked us to lead negotiations.

A long process followed culminating in face to face meetings at which we our presented our client’s position. Offers and counter offers were made to the point both parties were still wide apart on value. (The multi national were not wrong either in that the value of the business to anyone else was minimal).

We finally brokered a deal for the company to be sold for over £700,000.

Our parting shot was that the purchaser pay the costs of the client’s own solicitors and our costs. They agreed.

The clients accountants and solicitors finalised the mechanics of the deal.  The client was very happy and his professional advisers were even happier to support their client.