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Improving a company's
practices, operations and strategy can have a positive impact on the
valuation when a company eventually sells. This advisory service is
targeted towards companies that plan to sell down the road and who want
to obtain the best price when the time comes to sell.
We recommend ways to increase revenues and profits, and how to reduce
the perceived risks. We advise on how a buyer will view value. We point
out areas that might raise red flags, anticipate problems and address
areas of potential weakness.
Every company has areas that can be improved. Our review and
recommendations help you impose sound disciplines so that when the time
comes to sell, you will achieve maximum value. Even if you don't plan
to sell in the near term, establishing disciplined practices will
provide numerous benefits.
Increase
Revenues and Profits
The most important
action areas for improving value are increasing revenues and boosting
profits.
- Increase recurring revenues
- Build on your core capabilities
- Capitalize on your company's strengths
Reduce the Perceived Risks
Reducing the risks to a
buyer is the second most important action for improving value.
- What areas will buyers view as risky?
- How does risk affect the valuation?
- How can you minimize the risks for a buyer?
How Buyers View Value
We help you understand
how buyers think about value. This is particularly important for
companies with strategic value.
- What drives the valuation?
- What components of value are relevant?
- How can you avoid leaving dollars on the
table?
How a Buyer will View your Company
- How will a buyer view the company's
performance?
- What might performance look like as part of
a larger firm?
- Tell the growth story effectively
Review the Capital Structure
- Clean up the capital structure
- How will a buyer view your financial
statements?
- Evaluate contingent and off-balance-sheet
liabilities
Customers and Market Issues
- Keep customers at all costs
- Reduce the risks of customers leaving
- Should you move into other markets?
Management Issues
- How might people issues affect a sale?
- Advice on founder and family issues
- Keeping people on board
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