|
Selling a company is the most exciting business trip there is. For many, it's the trip of a life-time; the culmination of a career. For all, it should be an adventure; building value and then extracting it by finding the peak price achievable for the business through a journey of discovery.
Years of experience at international investment banks have convinced us that most businesses are sold short. Bankers brought in to handle a sale arrive on the scene too late to add much value. With little time to get a business into shape for sale, the best they can do is grooming. But superficial, cosmetic touch-ups are no substitute for the attractions of a vigorous, fit and healthy business.
1. Build Value
So Shield is ready to start earlier, with value-building. The sooner the better, in fact. Our 'Value Builder' programme builds value for you in 3 ways, by:
- Increasing profits
- Boosting the profit multiple by which your company will be valued
- Removing obstacles to saleability ('Value Depressants', as we call them)
2. Prepare for Sale
Before contacting or responding to potential buyers, our 'Sale Fitness' programme helps you work out:
- What you really have to offer, and how to present your potential.
- Who the best buyers are, and how they will view your business.
- When is the best time to sell (for owners, buyers and the business).
- How best to sell (in parts or as a whole? Assets vs. shares?), and who does what to make it happen.
- How to answer the inevitable question, "Why are you selling?"
We'll indicate to you how much you can expect from the sale, but recommend that the buyers be given no clues; they should be encouraged to put their best foot forward on the basis of a strong set of marketing materials. Our 12 week basic 'Sale Fitness' programme is the ideal way to lay a solid foundation for any future sale process. The sooner this is done, the better, in terms of likely sale proceeds.
3. Sell at peak value
Sale Execution is the final leg of the expedition to discover peak value. It starts with contacting and engaging selected buyers in strict confidence. It should involve educating them about the opportunity, presenting the best possible business case for the acquisition of your business and coaxing them to compete with their initial bids. Due diligence investigations by selected finalists then call for discipline: to keep the disturbance of the business within manageable bounds, to prevent collusion and to avoid leaks, while enabling buyers to assess the risks and opportunities in order to get comfortable with paying a high price.
All too often treated mindlessly as a mechanical process, this is the crucial climax of all the efforts that have gone into building the business over many years, as well as into preparing for the sale. Shield is alive to the dangers and to the potential of the final ascent. We relish the fight to the finish and work skilfully with your legal and tax advisers to get you to the top of the highest value-peak attainable.
|