BROKERTALK
Moorhouse to back broker start-ups
Even the MMA logo, part of the towns skyline, turned pink on 16
Broker Moorhouse has launched Moorhouse Enterprise, which will
October. The event is in conjunction with the Breast Cancer Campaign
enable individuals start up their own commercial brokerages.
initiative to Paint Reading Pink running throughout last month. Activities
Moorhouse Enterprise will provide a range of facilities for individuals
included a pink cake sale and charity raffle.
and teams, to help overcome the difficulties associated with establishing a
new business.
Business briefing -
The move follows intense consolidation in the UK, which has caused
How to sell your business
many individuals within these new enlarged groups to feel disaffected, said
Peter Allen, a partner and head of financial services with Grant
a Moorhouse statement.
Thornton provides guidance on an effective disposal and debunks the myths
Moorhouse Enterprise aims to help those that are frustrated within
which surround the process
acquired firms, and others who have the desire to set up their own
While the overall process of selling a business can appear complicated
businesses, overcome the barriers to entry.
and protracted, its individual parts are in fact simple and involve common
Start-ups will operate as appointed representatives of Moorhouse and
sense attributes such as proper planning, an awareness of the issues, good
support will be available in the following areas:
advisers and sheer grit and determination.
● Compliance
Making it happen
● Marketing (including online)
Planning for a sale may well start years before you actually intend to
● Agencies
sell, and this time should be invested wisely in ensuring that every bit of
● Products and schemes
the business – succession, systems, sales etc - is in excellent shape.
● Systems
Once the sale is on, valuations usually go up initially and then down
● Trading website and technology
the longer a sale goes on. The aim of the seller and the adviser is to keep
● Head office functions
the process moving on and the price up.
Chairman Lyndon Wood said: “There are currently many people within
From beginning to end the majority of private company transactions
acquired firms who have been through all the upheaval but seen no direct
take around six months. Realistically it is worth anticipating that it could
benefit. Many have the drive and the aptitude to succeed on their own but,
take up to nine, but if it is taking much longer than this is rarely a good
because of the obstacles that must be overcome, plus the general sense of
sign.
economic doom and gloom at the moment, many are staying put.
Stringing out the deal is unlikely to make one buyer pay more, but
“This is why the time is right for a vehicle to help budding
could mean other potential acquirers drift away.
entrepreneurs get started. Their frustration is part of the hangover from
consolidation but out of it will emerge the next generation of
Use the right advisers
entrepreneurs and Moorhouse Enterprise hopes to help many realise their
Not getting one, or getting the wrong one, is a common reason for
ambitions.”
deals failing. Everyone should have a financial adviser and lawyer to ensure
the deal happens, promptly and properly. Try to match the size of your
MMA turns pink
advisers to yours, so the deal will get their attention and best efforts.
Broker-only insurer MMA turned pink last month in support of Breast
They also need to understand your market so that they know who are
Cancer Campaign. Over 300 staff at MMAs Reading head office wore pink
the trade buyers as well as the professional investors. Lawyers should have
in aid of Breast Cancer Awareness month.
a wealth of transactional experience.
The price is right
Whatever your business, agreeing a price for a company is a vital part
of completing any transaction. Understanding some of the basic issues can
help you to arrive at a mutually satisfactory conclusion.
How much a company worth is rarely a question with an easy answer.
You could start with the premise that it can be calculated by a standard
multiple of earnings, revenue or adjusted profits. But in the real world,
each buyer will have their own price depending on their perceived strategic
interests. They will also make assumptions, and apply different valuation
models to parts of the business that really matter to them. Knowing what
drives the vendor and the relative importance of each issue is key.
Many try to build in some element of future earnings and see the
value today. However, any assumptions about future income are likely to be
fundamentally flawed. For example most purchasers are unlikely to have
4 Insurance Brokers’ Monthly
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