Understanding the art of a good deal

By Mark Brooks, Rickard Luckin.
As Rickard Luckin’s corporate finance director, I support clients in the buying and selling of their businesses. This means I regularly face scenarios where a healthy degree of tenacity is required.
Published in UK Director Magazines Summer 2024

Accountancy: Mark Brooks, Rickard Luckin

Mergers and acquisitions are often complicated, involving moments when it feels doubtful that a deal will complete. The following examples highlight times when trust, determination, and courage were essential in bringing the deal to a positive conclusion for all concerned.

Changing views

It can be challenging for a business owner to part with a company that they personally founded and grew over many years. Although we make every effort to ensure that business owners are ready to sell – and that the businesses themselves are saleable – some clients can have second thoughts. In these cases, our approach is to return the client to their original thought process. Why were they looking to exit the business, and what will the future look like for them once the deal is achieved? 

Unexpected changes

In one case, the sale of a family-owned business went awry when the terms of the agreement changed suddenly, with no justification. Although the original terms had been agreed with the buyer, such changes meant the deal would progress to our client’s detriment. Our response was to persevere, doggedly sticking to the original terms and ensuring an effective outcome.

Alternative options

Identifying a buyer for a client’s business involves months of dedicated research and planning.  However, there is still a risk that no suitable buyer will be found. A recent example involved a strong trading business that was significantly impacted by matters outside the owner’s control, almost as soon as their business was taken to market. Drawing upon our expertise, we were able to present new-found growth opportunities to a buyer who would otherwise not have been interested.

Lessons learned

  • Be prepared: When unexpected issues arise, a keen understanding of the details will determine what must happen next.
  • Be fulfilled: It’s important to enjoy the work you do. If you don’t, you may lack the inner drive to push on through challenging situations.
  • Be determined: When it looks like there is no way forward, optimism, expertise – and plenty of grit – will help you find a workable solution.
  • Be knowledgeable: It’s hard to stick to your guns if you don’t also have the knowledge that dictates what can and can’t be achieved.
  • Be trustworthy: When people know they can count on you – and that you will fight their corner if necessary – they become easier to deal with.

At Rickard Luckin, we pride ourselves on our tenacious, committed, and dependable approach, which helps my team and me bring many transactions to a successful completion.

Understanding the art of a good deal 1

GET IN TOUCH

Mark Brooks is Head of Corporate Finance at Rickard Luckin.

T: 01245 254266
E: mark.brooks@rickardluckin.co.uk
Or visit
www.rickardluckin.co.uk/corporate-finance

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