Delivering the right succession strategy for your business

Expert advice for successful business transitions.

Whether you’re considering stepping back from day-to-day involvement, transferring ownership to the next generation, or exploring a sale to management or an external buyer, our corporate finance experts can help.

We work with business owners to understand the full range of succession options available and what each route could mean for them personally and for the future of the business. Our team can help you evaluate, prepare for and execute a succession strategy that protects the value you have created.

Who we work with

The clients we partner with on succession projects include:

  • Business owners starting to think about a future succession event
  • Business owners looking to de-risk value from the shares in the business
  • Owners considering a transition to the next generation of the family
  • Those exploring a sale to a management team, private equity buyer or trade buyer

Where we can help

As experienced corporate finance advisors, we provide integral advice across the full range of succession options to help business owners understand the landscape and make informed decisions. Our key specialisms include:

Management buyouts and buy-ins

Where the management team is well placed to take the business forward, we can support you to:

  • Assess the feasibility of an MBO (either as a vendor or management team)
  • Structure a transaction that works for both owners and management
  • Identify and secure appropriate funding
  • Project manage the transaction through to successful completion

Family succession and next generation transitions

Passing ownership to the next generation can be complex, both commercially and personally. We work with business owners to:

  • Understand your ultimate aims and desired legacy
  • Explore the practical and financial implications of family succession
  • Appraise the next generation’s appetite and skillset to drive the business forward
  • Structure ownership transitions that support long-term business stability

Private equity investment

Private equity can provide a route for owners to realise value while supporting future growth. Our team can help you:

  • Understand how private equity investment works and prepare the business for equity investment
  • Identify suitable investment partners and compile an information memorandum on the business / proposed transaction for private equity consideration
  • Structure transactions that balance value realisation with future growth ambitions
  • Manage negotiations and project manage all parties through to successful completion

Sale to competitor or complementary business

In some cases, selling to another business (often referred to as a trade sale) may provide the best outcome for shareholders and the company. We support clients to:

  • Carry out financial analysis and sector research to provide a valuation of your business
  • Prepare the business for a sale process, including the compilation of sales documentation such as Information Memorandums (‘IMs’)
  • Assess, approach and negotiate with potential strategic buyers
  • Manage the transaction process through to completion

Employee Ownership Trusts (EOTs)

For some business owners, transitioning ownership to employees via an Employee Ownership Trust (EOT) can provide an attractive alternative to a third-party sale. An EOT allows shareholders to realise value while preserving the company’s legacy, culture and independence. We support clients to:

  • Assess whether an EOT structure is appropriate based on shareholder objectives and business readiness
  • Carry out financial analysis and valuation to determine an appropriate transaction value
  • Advise on the structure and funding of the EOT transaction
  • Coordinate legal, tax and trustee arrangements
  • Manage the process through to completion, ensuring a smooth transition to employee ownership

Our approach to business succession projects

Succession and exit planning starts with understanding and alignment with your personal objectives, protecting the value you have built and ensuring the business continues to thrive in the future.

Our role is to help business owners understand all options available and the implications of each route. By providing clear, independent advice across all potential outcomes, we give you the visibility needed to make informed decisions about your business and personal future.

In summary, we can support you to:

  • Understand the full range of succession and exit options available
  • Evaluate how different routes could impact business value and future growth
  • Prepare the business and stakeholders for a successful transition
  • Deliver your preferred succession strategy now or in the future

Speak to one of our specialists

Dave Baggott

Partner

[email protected]

Frequently Asked Questions

A corporate finance advisor provides specialist support on strategic and transactional financial decisions. At CN Corporate Finance, our team of experts help business owners understand their succession options, helps them plan and ultimately deliver the best route for you – this may include a Management Buy out, Private Equity Investment or a majority sale whilst still retaining equity and continuing to drive the business forward.

Business succession planning is the process of preparing for the transfer of ownership and leadership of a company. This could be to family members, a management team, employees or an external buyer. A well-planned succession strategy protects the value you have built, provides continuity for staff and customers, and ensures the business continues to thrive after you step back.

The main succession routes include a management buyout (MBO) or buy-in, family succession to the next generation, private equity investment, a trade sale to a competitor or complementary business, and an Employee Ownership Trust (EOT). Each route has different implications for value, tax, timing and legacy – we will help you understand all of the options so you can make an informed decision.

A management buyout is where your existing management team acquires the business, usually with external funding, but the level of funding can vary across deals. It can be an great succession route where the team is well placed to take the business forward. As part of our work with you, we will assess the feasibility of an MBO from both the vendor’s and management’s perspective, help to structure a transaction that works for both sides, secure appropriate funding (as required) and project manage the deal to completion.

An Employee Ownership Trust is a structure that allows shareholders to sell a controlling stake in the business to a trust held on behalf of employees. An EOT lets owners realise value, currently with significant Capital Gains tax advantages vs alternative options while preserving the company’s legacy, culture and independence. We assess whether an EOT is right for you and the business, provide valuation services, advise on structure and funding, and manage the process through to completion.

Private equity investment allows owners to realise some or all of the value in their shares while securing backing for future growth. We help you understand how private equity works, prepare the business for investment, identify suitable investment partners, compile an information memorandum, and structure a transaction that balances value realisation today with the growth ambitions of the business.

Family succession can be complex, both commercially and personally. We work with business owners to understand their ultimate aims and desired legacy, explore the practical and financial implications of transferring ownership within the family, honestly appraise the next generation’s appetite and skillset to lead the business, and structure the transition in a way that supports long-term stability.

A trade sale is the sale of your business to another company which can often a competitor or a complementary business. It can deliver the highest value as a strategic buyer can benefit more from synergies and savings from a combined group post-acquisition. We carry out financial analysis and sector research to value your business, prepare sale documentation including an Information Memorandum, approach potential buyers and manage negotiations through to completion.

The earlier the better, and usually at least 2 – 3 years prior to a planned event. Early succession planning gives you time to, strengthen the management team, address any value gaps and choose the route that best fits your personal and commercial objectives. Even if a succession event feels a long way off, an early conversation gives you visibility of your options and a plan to work towards.

Valuing a business can be a complex process and requires a detailed analysis of your business, operations, financials, industry and external market factors. Calculating the most appropriate basis of valuation can depend on many factors – some of the more common methods are market-based comparatives including multiples of maintainable profits, comparable transactions, levels of net assets in the business, and discounted cash flows based on future forecasts and expected cash flows.

Ultimately, the value of a business is agreed between a willing buyer and a willing seller, and in the context of a transaction, the ‘buyer’ can vary greatly (i.e. a management team ‘vs’ a larger corporate).

Our options and returns appraisals are a good start to provide a headline assessment of current value, highlight the value gaps holding your business back, and summarise your potential exit options, giving you a clear baseline for growth and exit planning.

If you’d like to get a more accurate valuation of your business, or you are looking to assess whether an offer you have received is fair and appropriate, don’t hesitate to get in touch with CN Strategic Advisors to provide you with our experienced assessment and strategic advice.

We partner with business owners at every stage of the succession journey. Our clients are established and profitable and can range from those just starting to think about a future succession event, to owners looking to de-risk value from their shares, families considering a transition to the next generation, and shareholders actively exploring a sale to a management team, private equity investor or trade buyer.