Q.
We are a 17-man IT consultancy which has been running for just over a year. Our biggest client has just offered us a massive piece of business in its US and Paris offices, starting immediately. The contract is a profitable one, which would triple our turnover. The problem is that we would have to double our staff numbers to service the contract straight away. I have three main concerns. The first is the disruption this would cause to the business, at the expense of my other clients. The second is becoming over-reliant on one customer. The third is the strain on the company’s funds that will be made when new staff are hired. I’m starting to think that turning down this contract may be best for the health of the business. What advice can you offer?
Q.
I run a manufacturing business which I inherited from my father. The business has grown nicely – turnover is about £11m a year and profit is around £1m. We also have some good contracts and own our premises. But the business is no longer my passion and I wish to move on. However, I want to maximise value in the business and I am nervous about letting people know I am looking to sell – I don’t want to alarm staff or inform competitors. How do I get the most out of this deal and keep my plans under wraps while making deals?
Q.
A business friend of mine has just seen his company sale fall through for the second time in two years. I was planning to exit my own business within the next three years, but his experience has put me off. What do I need to do to make sure I don’t suffer the same pain?
Q.
I run a corporate catering business, employing 50 staff and have several blue-chip clients. I want to take on more work, but feel that to do this I will need to take on more staff and move to larger premises. I don’t want to signifi cantly raise my expenditure without first securing clients, but don’t feel I can offer the same quality of service without the company growing. What should be my fi rst steps in this expansion?
Q.
We’re a £5m-turnover businesses operating in the mobile connectivity market. Although our technology is differentiated, there are many alternative solutions available in an increasingly populated market. What action can I take to ensure that my business stands apart from its competitors?
Q.
I run a technology business based in Manchester. I’m looking to expand the business overseas, beginning in the United States. However, I’m uncertain how to monitor such an operation, particularly in ensuring a coherent strategy with a diverse workforce based many miles apart. Are there any particular monitoring mechanisms I can employ?
Q.
I would prefer to pay in paper than cash. Is this sensible and if the seller accepts to sell this way, how much more should I expect to pay than if it was a cash deal?
Q.
I am one of three directors (all of us are shareholders in the company), one of my fellow directors, the FD and minority shareholder has, after a period of ongoing dispute, requested that we buy him out of the business. Assuming this is the right thing to do how should we go about resolving this situation without causing any undue disruption to the business?
Q.
I’m bidding to acquire the company I worked for before leaving to run my own IT services business. The company I plan to buy is in big trouble but I think it’s a case of poor management and underinvestment. I’m preparing myself for the worst though and considering every conceivable angle before I take over. What’s the secret of a successful turnaround?
Q.
I own and manage a company that produces high-quality furniture. I have thought about exporting and expanding to foreign markets, but recent international trade disputes have made me think twice. How can I be sure that exporting or expanding abroad is the right choice for my company?
Q.
We are a small technology company and have some product ideas in the final stage of development – with a lot of potential for the Asian market. We have heard a lot about China as the world’s manufacturing centre and using Hong Kong as the platform for business in the region. How can we get started?
Q.
I’ve built an industrial components business over the past five years to an £8m turnover. My management team has grown with the business, however I don’t feel they possess the necessary skills or formal training to take it to the next level. Ultimately I would like to step down in the next few years and sell the shares to the management team, retaining a non-executive role on the board. How can I ensure the team is best placed to take the business forward?
Q.
My two-year-old software business has developed a mobile technology offering picture and text-based translation services for English speakers abroad. I’m keen to raise finance and pitch to mobile operators, but feel I need greater endorsement and protection first. How would you advise going about this?
Q.
A business I’d earmarked for possible acquisition in the future has been offered to me now for a very decent price. I’d planned to concentrate on developing core business this year before looking at acquisitions in 2006. I’m worried about losing focus but am tempted by an opportunity that appears too good to turn down. What should I do?
Q.
I run a media recruitment agency and am considering diversifying into providing employee training to both the companies we currently serve and the individuals on our books. I think it’s a good fit, but can’t decide between starting from scratch or acquiring one of several companies successfully operating in our area. How should I decide on the best strategy?
Q.
I’m thinking of selling off an arm of my business to concentrate on other avenues. I’ve had it valued at £600,000. Should I use a broker for the deal or is it something my lawyer would be able to handle?
Q.
I’ve run a successful textiles company for the past 25 years but would like to step away from the business later this year. Ideally I’d like to keep the business in the family and have my 27-year-old son become a director. How do I decide if he’s ready to run the business?
Q.
I’m looking to retire in the next 18 months and am in the process of choosing a candidate to head up my 30-person business. Although I’ve selected someone from the company’s existing management team, I’m concerned that those who didn’t get the job may leave. How can I ensure this doesn’t happen? Is it easier to reconsider and go for an external appointment?
Q.
My 32-person fashion business includes two Yorkshire-based boutiques, a recently opened outlet in central London and a small design studio on the wholesale side. I have a £250,000 factoring facility in place to support the wholesale side, but need to raise funds of around £1m to open four further retail outlets, for which we have options in place. What method of funding would complement my existing arrangement?
Q.
I had planned to exit my 10- year-old software company, which has revenues of £10m, in the next two to three years. Our VCs invested £2m four years ago for a 40% stake, but now I find they expect to exit within the next year to year and a half. What are the most tax-efficient options available to me and will I have to compromise my own plans to make the most attractive gains?
