What happens on an initial call with the sellers?

The initial meeting with sellers, and their advisers, is a “get to know you” type meeting. This is your chance to talk directly to the owners of the business and carry out a general fact find, asking questions on specific areas of the business operations.

You should treat the call as a conversation rather than having to stick rigidly to an agenda. The call is intended to build rapport with the sellers in order that they see you as a credible, knowledgeable and interested buyer and wish to progress further discussions with you to the next stage in the process.

The conversation may include the following: -

·        You, the buyer – Introduction about yourself, your background and why you’re interested in the business for sale

·        The company for sale - quick overview of the business.

·        Roles of the shareholders. 

·        Current business profile including activity levels

·        Financials 

·        Management accounts - progress to date in the current financial year

·        Timeframes / roles post sale / handover / retention of equity on sale, etc

Questions about valuation are not normally approached at early stages.

After the initial discussion, if you’re keen to pursue matters, you may wish to request further detailed information, particularly financial information, including management accounts, which are normally reserved by the sell side advisers for release after the initial call.