Selling a Business | What Makes a good Investment Proposal?

Selling a Business. Sale of a business. Nic Hanlon, Commercial Banking Director, discusses what makes a good business proposal and the importance of a good business plan.

Selling a Business | What Makes a good Investment Proposal?

Neil Ackroyd

Neil Ackroyd is the Founder and principle interviewer at Corporate Finance TV.

Nic Hanlon

Nic Hanlon of Natwest is a lead arranger in Corporate Finance to the SME market including MBO's, MBI's, Acquisitions & Share Buy Backs.


Dave Harries

Nic what can an management buyout candidate do to make it a more attractive proposal and gain attractive terms when selling a business.

Nic Hanlon

I think that the first thing is to get a good quality and detailed business plan together. We are not looking for a great growth story necessarily within the plan. Often we see plans with a 20% growth per annum where historically the business may be preparing a growth rate of RPI Inflation only but there might be a different emphasis if you are trying to attract equity investment but certainly not for the banks. For us it's about the here and now, it's about how the business is performing and how that is likely to transpire into cash flow going forward into the future. I think the other thing is being able to recognise the weaknesses within the business and to put in place specific strategies around those weaknesses and to find some mitagence as well. Ultimately what the bank is trying to drive at is the core cash that gets driven out of the business, so be then be able to service the debt. That is the key thing for us. It is about the quality of the business plan and really coming down to that core cash available to service debt.

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