Companies for Sale

Axis have a wide selection of companies for sale throughout the UK in a number of key sectors. To register your interest in companies for sale as well as your acquisition requirements please contact us. Alternatively take a look at our online listings by sector:

Companies for Sale – The Current Climate
The last couple of years have been difficult times for many businesses and there have been significant shake outs in some sectors. So it may be surprising to discover that there are still significant levels of interest in companies for sale, especially in some sectors.

Buyers with cash to invest can find good value in many areas provided they do their homework and match prospective companies for sale to their investment resources, skill, and wider portfolio. Above all, they need to have a sound business plan for the new business.

Experienced buyers will know that looking just at the overall economic picture can hide what is really going on in specific companies or in particular sectors. In other words, buying companies for sale during a downturn isn’t always a bad idea, any more than buying during a boom is always a good idea.

It is therefore helpful to identify some of the sectors that are doing well in order to understand the factors contributing to their success.

For instance, within the Healthcare sector, domiciliary care companies for sale are still producing healthy returns for their owners at the moment. This may seem counter-intuitive since local authorities across the UK have introduced cuts to local care budgets. But the demand for high quality care is not going away – if anything it is increasing and likely to continue to do so for the next couple of decades as a result of demographic changes. Many national care providers are taking the opportunity to expand their national presence by acquiring independent care companies for sale. This is creating a win-win for buyers and sellers, with buyers keen to buy into a stable sector and sellers able to attract good sale prices for their businesses. As always, quality counts and buyers are especially interested in companies for sale which have been awarded a minimum 2 star or good rating by the Care Quality Commission. Buyers are also looking for good capacity and a good mix of funded and private work. The presence of some private work protects the business from any sudden changes in government funding, as well as proving the ability of the business to attract private clients. Care companies for sale which can continue to run by themselves following acquisition are also attractive to buyers – e.g. those with registered managers in place or where the vendor is willing to continue running the company for a period of time to help recruit a replacement. Companies for sale that specialise in particular types of care are especially sought after, for example providers offering palliative care, or those dealing with learning disabilities or autism.

By contrast, recruitment companies for sale show a more mixed picture. While there has been an understandable drop in demand for permanent recruitment, some types and sectors remain steady or are even growing. For instance, there has been an increase in temporary employment and contract employment, so recruitment agencies specialising in this type of placement, or who have intelligently diversified into this area, are holding steady. Although margins tend to be lower in non-permanent recruitment, it allows agencies to maintain a steady cashflow and strengthen relationships with clients by flexibly meeting their needs. Recruitment agencies often specialise in a particular industrial sector, and so many have followed the fortunes of the sector they serve. Consequently, some agencies serving steady sectors are thriving – at the moment specialist recruitment into areas such as oil and gas, specialist engineering and IT are benefiting from these buoyant sectors where demand is high. A prospective buyer therefore needs to understand the sector(s) covered by an agency in order to assess its potential over the next few years. As ever, recruitment companies for sale which have proven themselves to be flexible and able to adapt to these changes will be an attractive proposition.

How to Choose Companies for Sale
What can buyers learn from these examples? Of course every sector and every company is different, but there are a few key factors which are good to look for whatever company you are considering.

1. Look for companies providing essential services which are going to be needed regardless of the economic climate such as healthcare, property management, cleaning, and logistics. These companies are generally a safe bet provided they are well run and finances are secure.

2. Look for companies with a track record of providing quality and/or satisfaction. Have clients renewed contracts? Does the business have relevant quality ratings? Does the company win business through recommendation? All this points to a well run business with good people delivering a good service.

3. Choose companies which are not overly dependent on one large client or a small number of clients, as these will be more resilient to change. In a government related sector such as healthcare, it is helpful if companies can show at least 20% private funding.

4 Even if the overall climate or a particular sector doesn’t look too rosy, look for companies or geographical areas which seem to be bucking the trend, and try to ascertain what is different about them. There may be bargains to be had if you can find a successful company in an otherwise deflated sector.

5. Look for companies which can continue to run in the absence of the vendor, to avoid a hiatus in activity and ensure a steady income from the beginning. Look for strong management teams where the owner has successfully delegated key roles. Alternatively, arrange for a handover period as part of the deal.

6. Finally, make sure you have an experienced business broker on hand to help you assess prospective businesses, as well as assisting in negotiating a deal through to completion. With our extensive experience Axis can help you understand the finer points of the acquisition process and ensure you get a good match for your needs. And with Axis working on your behalf, you need not wait for a suitable company to come up for sale – we can research companies and approach them on your behalf, giving you an important advantage over other potential buyers.

To find out more about how Axis can help you buy or sell a business, please contact us or register your requirements.