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When
it comes time to sell, many companies are not very well
prepared. Often they are too far down the road in the sale process to effect any
meaningful changes that will impact value. Preparing a
company
for sale ahead of time has two principal benefits:
- The sale process progresses more
smoothly and with fewer delays.
- The valuation of the company is higher.
If you are thinking about selling the company in the next six months to
24 months, our review process will help you get the company
ready. We have been arranging mergers and acquisitions for 27
years and have a wealth of experience understanding value and closing
transactions. We advise you on how to get your house in
order,
clean up loose ends and prepare the company for eventual sale.
We advise you on what actions and activities should be
undertaken to make the sale process as smooth as possible and bring the
highest valuation. Examples of the questions we address
include
the following:
Broad
Questions
- Where are you exposed?
- What are the red flags?
Risk
- What are the risk areas?
- What are the market risks, management
risks, technology risks, and financial risks?
- What risks could have a negative impact
on value?
- How can you minimize the risks for a
buyer?
Market and
Customers
- What marketing initiatives should you
start, continue, or cancel?
- Which marketing tasks will create the
most value?
- How should you weigh long-term versus
short-term benefits?
- How do you compare with your competition?
- What companies have sold in similar
markets?
Operating
Issues
- What management decisions and practices
should be reevaluated?
- Should you sign long term agreements or
leases?
People
Issues
- What people should stay on board?
- How can you retain key employees and
motivate them to stay committed?
- Should you cut back on staff?
- When and how should you disclose to
employees?
Financial
Review
- Are the financial statements in good
enough shape?
- Is your capital structure a problem?
- Is an audit necessary?
- What items raise a red flag?
- How should you deal with questionable
items?
Valuation
Issues
- What drives the valuation?
- What components of value are relevant?
- How would a buyer view the company's
value?
- What is the preliminary valuation range
for the company?
Positioning
the Company
- How can you position the company for
maximum value?
- What is the best way to communicate the
company's assets?
- How can you best emphasize your
strengths?
- How can you minimize any weaknesses?
The Sale
Process
- When is the best time to sell?
- What mistakes can be avoided when
selling?
- How do companies leave dollars on the
table?
- How can you make due diligence less
arduous?
- What documents and other information
should you prepare?
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