Extracting peak value

Your primary objective:

To achieve a premium price for the stake you want to sell by getting the timing and process right.

Your concerns:

Getting the timing right

You only need to live through one recession to understand why some people say "timing is everything". We've seen a few. In addition to market cycles, individual businesses have their peaks and troughs. But paradoxically, peak profits don't bring peak pricing. Because buyers want future growth. Too many sellers leave their sale too late. We can help you weigh the timing considerations from the market cycle, from the business, from the buyers and from the shareholders - to work out when to push the "Go!" button.

If you want to protect the wealth you have built up in your business but are not ready to retire from it, we can help you extract some value while retaining some (possibly all) of your stake. You may be able to have your cake and eat it - or at least have a second bite at the cherry!

Getting the process right

You only need to live through one failed sale to understand why some people say "process is everything". A business can collapse under competitive attack on customers and staff when uncertainty about future ownership and direction has undermined confidence. At the other end of the spectrum from failure to success, a process with panache can produce truly remarkable results. We've seen more than a few of those - with sellers achieving prices several times higher than they had thought possible.

It may be tempting to accept a request for exclusivity from a suitable buyer who seems willing to pay the price you had in mind. But paradoxically, restricting discussions to a single potential buyer is not usually the best way to protect confidentiality. Contact us to find out why. Certainly competition works wonders to maximise price, but that doesn't mean that an auction is the right approach in every case. We'd be happy to discuss your process options and what's best in your particular circumstances.

Working out what it's worth

Shield's valuation service will provide you with a good indication of what your business is worth on a stand-alone basis and taking synergies into account, both today and in the future. For a first approximation at no cost, please complete our Valuation Questionnaire.

Identifying the best buyers

You probably have plenty of good ideas yourself. We'll add a surprising number of further names, domestically and internationally, from our specialist Research Department and our extensive contact network. Our M&A partnerships extend to China and Japan. We'll investigate the track-records and financial capabilities of all of them, to give you a ranked long-list of potential buyers. Then we'll help you pick the short-list for confidential approaches.

Avoiding damage to the business as a result of sale

Competitors taking advantage of sale rumours
How would your competitors, customers and employees react if they knew a sale was likely? We help you think through the answers to this crucial question. For most businesses, it is vitally important to keep the fact of sale secret as long as possible. So it's best to work discreetly with a small team of specialists. The larger their firm, the greater the chance of a leak.
Competitors taking advantage of your trade secrets
This is a serious risk and it needs to be well-managed. We can reduce it by phasing the release of sensitive information. We can also help you work out the consequences of debarring some or all competitors from your sale process. Managing confidentiality is the core of our business.
Management distraction
Selling a business is a job in itself. Preparation is important and competition is key. Getting this right involves a mountain of work - and it's not the kind of work managers normally do. Management's job is to manage. Because if monthly performance is down when it comes to negotiating the sale, the buyers will have plenty of ammunition for a price reduction. So use competent advisors to run your sale process, and make sure they know what they're doing - otherwise your business will get damaged by distraction.
Failed sale
If any sale process fails, the business is in danger. Competitors will exploit the uncertainty over the future to destabilise your customers and staff. Management will be exhausted and morale will be low. You won't be able to come back to the market for at least a year, because it takes time to build a new story that will persuade buyers to look again.

What do I do next?

Shield has extensive experience of running successful sale processes and helping business owners to sell their businesses, generally for more than they were expecting. Contact one of our directors and we would be delighted to discuss our distinctive approach.

Selling a business