A symptom of the Irish economy's success has been a surge of interest in raising venture capital and in mergers and acquisitions, not just among bigger firms and public companies, but smaller ones as well. Combine this with the usual number of higher-net-worth-owner managers of family companies who may be looking to sell up while the selling is good, and you have a business opportunity that has resulted in the launch of IBI Corporate Finance's new Private Company Unit.

It is aimed at private companies with a good profit stream, ideally with turnover of around £10 million a year "though we certainly do not turn anyone away", says the unit's associate director, Mr Ted Webb.

The unit has been set up to fill a gap in the market for smaller companies and owner-managers who may be looking to exit from a business they have been growing for 20 or 30 years and may not have anyone to succeed them in their immediate family. On the other hand, the unit acts for small companies who want to expand their business by raising more money or by taking over an established firm. This is a service, Mr Webb says, that IBI and others have specialised in for 30 years, but the surge in turnover and earnings in the last five years means doing the same work for the small to medium-sized firm can be just as profitable. According to Mr Webb, the Private Company Unit aims to give a service to owner-managers who are at a stage in their careers when they are wondering whether they want to continue when what may be required is a major reorganisation and a whole new set of risks to lift their company onto a higher growth level.

Others have no one in the family to leave their business to and are wondering when the right time would be to exit. Some people need advice on what to do with their money if they do sell out. The unit's function, he says, is to help assess what is needed and then to either raise funds for future expansion and development, to find strategic partners, to arrange management buyouts or to look for another company to buy out the operation altogether.

"We want to match those people who want quality homes for their money," he says, with others who may be ready to sell their business and/or those who are prepared to stay with a smaller equity stake for a few years to take advantage of a potentially greater earnings stream over the next couple of years.

For the latter group, says Mr Webb, the question is a difficult one because timing is everything. Leave too soon, when a profit-growth pattern has been established and you could be walking away from extra millions, he says. Some owner-managers may just want an assessment of their business's value and its potential worth, others are looking to set in process the selling of the firm to the highest bidder.

Once the unit has a mandate from the owner to sell the company, a lengthy process begins which starts with site visits, standardising of the accounts, formal valuations and the creation of sales documents and company profile. A list of prospective buyers is drawn up.

When the bids come in, the most suitable one must be chosen, due diligence carried out and sale or shareholding agreements are then drawn up by the lawyers. In the midst of all this, the owner is encouraged to get all his own personal financial affairs in order, says Mr Webb.

"The whole process should ideally take four to six months," he says. "Our fee is usually a percentage of the sale value."

The fee is understood to range from 1-4 per cent. He insists the

fees are "all up for discussion, depending on the company, the amount of work involved, the state of the company affairs".