You only get one opportunity to exit your business. Nothing should be left to chance. Furthermore, careful planning allows the business owner to remain in control of any process. It also focuses the business on the most important, value-enhancing strategies prior to an exit.
Important considerations include:
- Current value of the business
- Key value drivers
- Nature of the market (e.g. number of potential buyers, pricing trends)
- Potential barriers to a successful exit
- Aspirations of the business owner
Our team of Corporate Finance experts can provide pragmatic advice on all of the above.
Formulating an exit strategy will help to clarify the most appropriate timing for an exit. However, it is sometimes necessary to achieve certain pre-sale planning objectives. Often, these objectives will centre around improving the valuation of the business. As a gap may exist between the perceived current valuation and the aspirations of the owners.
A well developed strategy will help identify those steps and must be taken prior to exit, in order to successfully close this gap.
- Profit enhancement measures
- Strengthening of competitive position
- Revealing future growth opportunities
- Demonstrating the continuity of key management and/or expertise in the business
- Balance sheet improvements
- Enhancing the quality and timeliness of financial information
- A full legal review, helping to identify and address any gaps or weaknesses in the businesses affairs
Our prime objective on a disposal is to deliver the best deal for the shareholder(s). The first consideration is always whether disposal is indeed the best option in releasing value for the owner. Significantly, we seek to establish realistic price expectations and valuation parameters.
Our approach to disposals is to establish a controlled auction process.
- Initial planning and preparation including
- Appraisal of the business. This includes indicative valuation and timing of sale
- Appropriate grooming. This ensures the business is presented in the best light
- Purchaser research
- Consideration of structural issues and tax planning
- Preparation of an information memorandum
- Marketing to selected purchasers
- Assessment of offers received
- Negotiation and delivery of the preferred purchaser
We would be happy to talk to you further about this. We also offer other forms of disposal. These include cash-out, flotation and MBO. We would be happy to discuss these further with you.