Frequently Asked Questions
We’ve compiled these frequently asked questions from the many we’ve received to help visitors to this site address any outstanding concerns they may have. If you would prefer to speak to a person then please feel free to call our team.
Are You a Brokerage Firm?
No. We ACQUIRE & MERGE companies (M&A) directly, we don't find a seller for you.
How Does The Process Work?
This is a brief outline of the key stages in the process.
Once you've decided you want to explore the sale of your business and make contact with Acceleron V, we will arrange a call (voice or video) to better understand your situation, business and outcome requirements as well as getting to know you.
If we can both see a potential acquisition being worthwhile exploring, a meeting will be arranged to expand in more detail which may require an NDA (non disclosure agreement) signing to prevent sensitive information from being shared inappropriately.
An acquisition may not be appropriate or even make sense in some cases. If the business is viable and shareholders see a future, we occasionally partner to create value for the right opportunities. This is a rare outcome though as our focus remains on acquisition.
As things progress, if anything remains unclear or further analysis is required then additional meetings will be arranged to go deeper into these areas.
Again, if we can both see good reason to continue further, after the initial analysis is complete, an offer is constructed expressed in an IOI (indication of interest) and later expanded into Heads Of Terms (HoT) or a Letter of Intent (LOI )which also includes deal terms and is signed by both parties.
More information on LOI's and HoT's can be found here:
A due-diligence process is then undertaken in an attempt to support the assumptions made during the IOI and HoT/LOI stage. If these assumptions are found to be incorrect then the offer is adjusted accordingly.
The final stages involve the construction of a purchase agreement and the closing process which depends on the situation at the time.
Professional advisors are typically involved in the later stages of the process and it can be as quick or take as long as is necessary depending on the complexity and clarity of the situation.
We advise all sellers to seek appropriate advice and plan to ensure a tax efficient sale.
What If I Dont Want To Sell?
For most businesses and business owners, selling is the best and only option.
However, for unique cases, there is another option, especially if staying with the business and working on its growth makes sense for both parties.
We're establishing a group of companies with clear synergies within a public listed internationally traded vehicle which creates a number of clear advantages.
The first being that all officers in the group own a piece of the group and so benefit from the significantly larger multiples that listed companies are able to command.
The second comes from the additional value created through cross synergies within the group.
This is much faster and more predictable than organic growth which most SME's experience.
In addition, listed companies can create large liquidity events which can further fuel growth, until such a time that an exit can be achieved by a larger acquirer.
How will you finance the purchase or acquisition of my business?
We have financial backers and funds are in place for the right business and the right deal.
Where possible we prefer not to burden the business with unnecessary debt through over leveraging. Instead we seek to structure deals that make sense for both parties (and the business) whilst achieving the sellers valuation if possible and reducing the inherent risk in these transactions.
The deal and the business though must make sense and be viable in the first instance.
Acceleron V is not directly capitalised because we understand the acquisition journey could take a long time (to find the right deal) and there is no point having cash sat in a bank account doing nothing just for the purpose of showing others.
We prefer sanity to vanity.
Questions Of CONCERN
Why should I/we trust you?
Trust is an issue for both parties in this transaction and there are a number of ways we can work with you on building trust.
One such example is we can work for a sellers business on a consultancy basis to deliver a business improvement outcome in exchange for equity and the opportunity to work together on selling the business.
Will you asset strip my business?
Ideally no, we are not asset strippers. If it's an excellent business and buying the shares makes sense then we plan to keep it that way.
However, if there are risks involved, or the business is in financial distress, then we may be left with no alternative than to buy just the assets. This does not mean we are asset stripping. Whichever approach we use, our aim is to make the business better.
The main difference is that with a share purchase we effectively take over the entire company including its assets and liabilities.
With an asset purchase the specific business activity is transferred along with its assets and employees into a new entity, protecting the business and its assets.
Will you fire all my staff?
Again no. If it's a good business then it got there because you had equally good people to help you, so we'd like to keep them.
However, with any major event in a businesses life it can be a trigger which sends people in new directions and some may decide to leave the company.
In worst case scenarios, like high risk or distressed businesses, we may be left with no alternative than to make some very difficult financial decisions in order to save the business and secure its future and the people that remain with it.
This could result in cut backs or even job losses. We want to do the right thing and for the right reasons.
Will you relocate my business?
Ideally no. Assuming your business is located in a geographically appropriate location (most are) and resides in a building that is adequate for its operation and affordable then we would prefer not to relocate the business. However, in some instances we may have no other option to relocate, typical locally to where the business is already based, to more appropriate premises.
How is Acceleron V structured?
Acceleron V Ltd has been established purely as a vehicle for acquisition.
For all intents and purposes, it looks like a shell company and is actually better known as an SPV (special purpose vehicle).
It is a standard practise used in acquisitions or asset transfers as the links below will demonstrate
Any broker or advisor telling you otherwise is most likely misrepresenting the situation (scaremongering) for their own gain.