M&A Valuation Report for April 2022 | Branta Corporate Finance

As we traverse the first quarter of 2024, the UK's small and medium enterprise (SME) sector continues to evolve, presenting unique challenges and opportunities for business owners looking to sell. This analysis seeks to provide a clear view of the current trends affecting business sales, offering insights that are crucial for making informed decisions.

In the bustling world of small businesses, where innovation can be hampered by financial hiccups, Branta stands as a beacon of hope. Our recent collaboration with The Homemade Brownie Company, a UK-based artisanal brownie maker, illustrates a scenario where determination meets opportunity head-on, resulting in sweet success.

Branta is on the lookout for innovative BMS companies in the South-east UK with potential for growth and success

Legal due diligence is a crucial part of any business transaction, especially mergers and acquisitions. It is a comprehensive examination of a company from all angles to ensure that there are no hidden liabilities or potential legal issues that could arise post-acquisition. The process typically begins with the receipt of a legal due diligence questionnaire from the buyer’s solicitor. This questionnaire serves as a roadmap for the due diligence process, outlining the various areas that need to be inspected.

If you own a small or medium-sized business and have ever applied for a loan or credit facility, you may have come across the term "personal guarantee." Simply put, it's a legal contract between the lender and the borrower that states that one or more individuals will act as a guarantor for the loan, should the business be unable to repay it. In this blog post, we'll explore what personal guarantees are, why lenders require them, and how you can deal with them to protect yourself and your business.

It's an open secret that the construction industry is currently going through a challenging period. This predicament has resulted from a confluence of factors, including the COVID-19 pandemic, escalating materials costs, labour supply issues, main contractors failing to meet payment expectations, and banks reducing their support for the sector. With increasing cash pressures and banks reducing the availability of borrowing facilities, the traditional avenues for financial support are becoming less accessible. But what options does a construction business owner have during these difficult times? Thankfully, there are alternative financing structures available. At Branta, we're dedicated to helping you navigate these financial waters and move your business forward. The Current Financial Landscape in the Construction Industry The global COVID-19 pandemic has wreaked havoc across all sectors, and the UK construction industry hasn't been spared. The pandemic has disrupted supply chains, leading to increased costs for materials. The problem has been compounded by labour shortages due to Brexit-driven immigration policies and self-isolation requirements. Moreover, main contractors are not meeting payment expectations, exacerbating cash flow issues for many businesses. Banks, traditionally a reliable source of funding, are reducing their support for the sector, leaving many companies in the lurch. And finance directors are increasingly anxious as cash always seems to arrive too late. Late payments can wreak havoc with a company’s reputation, which in turn hampers their ability to procure labour and materials. Which may then affect their hard-earned commercial advantage when tendering for new work. Issuing a notice to suspend work - a last-ditch effort to remedy non-payment - is proving to be a futile exercise rather than a solution. These mounting pressures have left many construction firms in a precarious financial position, struggling to see a long-term future for their company. What Does This Mean for Construction Business Owners? In these challenging times, construction business owners may feel like they're in a financial squeeze, with dwindling resources and limited avenues for financial assistance. This could lead to a slowdown in operations, layoffs, or worse, business closure. However, it doesn't have to be this way. There are still viable financial solutions available, and that's where alternative financing comes into play. Managing cash flow is a universal challenge for businesses, with 61% of small business owners regularly struggling with cash flow issues. Poor cash flow management can lead to serious problems, even when a busine ss appears profitable. The struggle to maintain cash levels often stems from a variety of factors. Low profit margins, holding too much stock, giving customers too much credit, and unnecessary spending are all common causes of cash flow shortfalls.  Moreover, small and medium-sized businesses are particularly prone to irregular cash flows and limited liquidity. This makes it crucial for these businesses to pay close attention to their working capital and cash flow management. Introducing Alternative Financing In the face of these challenges, where should a company turn if it needs additional financial support? Traditional UK banks may not be the most reliable source of aid in these trying times. Thankfully alternative financing options exist that construction businesses can explore. These include solutions from various non-traditional sources, but companies should be assured that alternatives to traditional banks do exist. Alternative financing refers to financial channels, processes, and instruments that have emerged outside the traditional finance system such as regulated banks and capital markets. These may include peer-to-peer lending platforms, crowd funding, invoice trading, supply chain and trade finance, among others. These financing options can offer more flexibility, shorter approval times, and potentially lower interest rates compared to traditional banking facilities. How Can Branta Help? At Branta, we understand the financial challenges faced by businesses in the construction sector. That's why we're committed to guiding you toward the most suitable financing options that will support your business's needs. Our team of dedicated professionals will work closely with you to understand your business's unique challenges and goals, allowing us to recommend the most appropriate financing options. Whether it's identifying suitable alternative financing structures, helping you understand the risks and benefits, or assisting with the application process, we're here to help every step of the way. Take the Next Step Don't let financial constraints hold your construction business back. There are alternative financing options out there that could provide the financial support you need to keep your business thriving even in these challenging times. Contact us at Branta today to learn more about how we can help you navigate these alternative financing options and keep your business on the path to success. Conclusion Navigating the current financial landscape in the construction industry can be daunting, but it's not a journey you have to take alone. With the right guidance and access to alternative financing options, your construction business can weather the storm and emerge stronger. Reach out to us at Branta today and let's explore how we can build a stronger financial future for your construction business together.

Navigating the Complex Landscape of Pre-Packed Administrations: A Dive into the Advantages, Disadvantages, and Essential Role of Independent Evaluator Reports

Branta's M&A Advisory Services Help Facilitate Strategic Acquisition by HeiQ

Discover how Piota Apps, a mobile app development company struggling to commercialise, turned things around quickly and started generating £2m ARR with the help of Branta. This success story is a testament to the power of networking, expert advice, and customised strategies. Learn how seeking expert advice and guidance can change the course of a business and help you achieve your goals. Read on to find out more about Piota's turnaround and the role played by Branta in this inspiring journey.