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Six good reasons to buy a business this year

buy a business in hale

Alongside launching a company, buying an existing business usually ranks as one of the most exciting times of an entrepreneur’s career. It’s worth remembering that a successful acquisition takes patience, effort and plenty of homework before the deal is agreed.

When our entrepreneurial clients acquire a business, we take great care to make sure that the deal makes sense financially, practically and culturally. After all, it’s not for the faint hearted.

Buying a business

In our experience there are usually some common reasons why it makes sense for business owners to make an acquisition.

  • Geographical expansion. Rather than creating a new physical infrastructure to sell your services or goods and hiring new staff in a new location, it may be less risky and more profitable to acquire an existing business in your target location.
  • ‘Bolting on’ new services, skills or technology. Creating new products and services to add to your business can often be done more efficiently through acquisition than trying to build them in-house. If another company has expertise in an area you want to operate it can make sense to ‘bolt’ them on to your existing business.
  • Growth and exit. It could be that you and your boardroom colleagues are on a growth mission for your business and a strategic acquisition can add value to your position. If you have one eye on an exit (i.e. selling your business) you may be able to create more value in your business by growing it with a suitable acquisition.
  • Buying a competitor. It may be that you feel that your business and a rival business are in the same marketplace, fishing in the same pond for the same type of business and that you come up against each other all the time in pitches and tenders. By teaming up together you may be able to create a more successful business.
  • Getting presented with an opportunity too good to miss is common. Sometimes, you will see an opportunity to radically reduce costs, improve margins and cashflows in a target business. Good professional advisers will present opportunities to you where you might not ordinarily come across them. This strategy is where private equity firms excel.
  • Succession planning. Retirement, handing a family firm into new hands or undergoing a management buyout (MBO) are popular routes to acquiring a company.

If you are thinking of acquiring a business you need to make sure that you finance the deal appropriately, structure the deal correctly legally and ensure that a thorough due diligence process takes place. That’s where lawyers and accountants will be able to help you and add tremendous value.

If you are looking to acquire another business call Murray Patt on 0161 980 8788 or email murray@alexanderknightaccountants.co.uk

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Alexander Knight & Co advises football startup business in Manchester

Mi Hiepa Scout advised by Alexander Knight & Co

We’re delighted to be advising Manchester-based football technology startup Mi Hiepa Scout, an innovative company bringing virtual reality (VR) into the professional game.

Mi-Hiepa Scout has launched the world’s first virtual reality technology aimed at rehabilitating injured footballers and scouting new talent.

Top clubs, physiotherapists and sports scientists have been involved in the development of the product, which is being rolled out this season.

Premier League clubs

Premier League clubs are already looking at the system, created by Mi-Hiepa Scout, and its founders hope that it will also be used to improve current players and scout for players in the future.

The company’s proprietary limb tracking mechanism enables the system to track the movement of a player’s feet and shins independently in 3D space. With no need for handheld controllers to move feet, accuracy and immersion in the virtual reality experience is first class.

Joint venture

The company was created as a joint venture by leading Manchester developers Mi and sports data experts Hiepa and we’ve been appointed as their accountants and will be assisting the company moving forwards.

Adam Dickinson, Production and Development Director of Mi-Hiepa Scout, said:

We’ve been delighted with the reaction by football clubs in the professional game. We’re operating at the elite level of sport and clubs are keen to explore any advantage they can bring to their squad.

For the first time, coaches, managers, scouts and sports directors can produce rapid, standardised, measurable and comparable results from talent pools that may have been previously unmanageable.

Our system helps get players better mentally and physically through individual training drills.

From a talent spotting perspective, it provides an objective, sterile environment, meaning all players have exactly the same conditions and can be compared equally. A youngster could go through our tests in thirty minutes and you would get objective data about their ability and performance. You could test 1,000 players a week as a first point of filter.

One of the problems many clubs are trying to solve is player engagement during rehab after an injury has occurred. This product certainly does that while providing valuable data for players, coaches and club performance analysts.

Strong credentials

Murray Patt, founder of Alexander Knight & Co in Manchester, said:

The professional world of sport is increasingly looking at technology to amplify the recovery time of injured athletes. The management team at Mi-Hiepa Scout has got strong credentials and connections in the world of football and there is no doubt that the growth plans for the business are impressive. We’re delighted to be advising the team.

Gary Black of Manchester law firm Freeman Fisher, who is advising the company, said:

It’s great to see a local company making huge waves in the VR world within the sporting arena. Manchester is already known as being one of the leading cities in sporting success and Mi-Hiepa Scout is making sure that our city is seen as the leading city when it comes to technology in sport.

If you are a startup business in Manchester – and wish to be formed as a joint venture initiative between investors and/or other companies – speak to Murray Patt at Alexander Knight & Co.