Acquisition Strategy

Business owners with a mature and profitable business need to avoid a potential decline due to challenges in the market from new competitors, new products or a change in customer demand. To help sustain maturity you can refresh your product or service offering, and/or introduce new products to keep up with the market and your customers. To extend the life and success of your business, you may consider undertaking this within the business that you have or through an acquisition.

Our consultants can help you put together an acquisition strategy which includes:
• Establish top down goals and objectives that results in a screening criteria
• Identify and profile potential targets and valuation criteria
• Manage due diligence and acquisition process
• Develop integration plan

 

Succession Planning/Exit Strategy

All business owners want to maximise the value of their business when they exit so that they can reap the financial rewards for all their effort, and be financially ready for their next business or for their retirement. To do this successfully, all business owners should have a Succession Plan. It may seem obvious that businesses should prepare and plan for a succession event, but it is often not the case.

Business owners should consider putting together a plan for succession in advance of their planned exit. This gives the owner enough time to make a decision to transfer the business to family/partners or prepare the business for sale and maximise their return. Whether you are planning to transfer the business or sell it, planning and formalising the transfer of power and assets is extremely important.

Our consultants can work with you to navigate through the many decisions relevant to the succession planning process. And, if necessary, our consultants can help you take a step back to revamp your business, to become saleable at the most attractive price.

Some of the questions to consider:
• What are your retirement income goals
• What is the value of the business and how can that be maximised upon planned exit
• Should you transfer the business to family members, execute a partnership buyout, or sell
• Who is ideally suited to replace you upon exit, i.e. assess the key skill sets of employees/family members
• What talents/skills need to be developed in core functional areas of the business when you exit the business
• Whether you are planning to transfer the business or sell it, planning and formalising the transfer of power and assets is extremely important and can help make understanding the process easier for all parties

 

Preparing for sale

All business owners want to maximise the proceeds from a sale of the equity in their business. To do this successfully, business owners need to be aware of the criteria considered by potential buyers.

The business needs to demonstrate a sustainable track record of profitability; processes need to be documented and systemised as much as possible; significant revenue and supply arrangements should be contracted if possible; financial and management records need to be up-to-date, accurate and sufficiently detailed; liabilities and any loan or equity arrangements need to be brought to full account.

Potential buyers need to have the right information, presented in the right way. You need to be able to demonstrate the strengths and potential of your business; this must be captured in the information memorandum.

Our consultants can undertake a full review of your business to prepare a comprehensive information memorandum that includes a detailed description of:
• Your customers
• Your market
• The strengths
• The business potential
• Financial and revenue analysis
• Core Operations
• Management and Staffing
• Key contracts, suppliers, distributors, purchasers
• Compliance
• Ownership and legal structure