Yorkshire and North East Dealmakers Guide 2016 - 25
Q&A
25
What are the top ten things to
get right for a successful and
premium value company sale?
Get your timing right and sell on a tailwind Maybe blindingly obvious, but
not only does the timing have to be right for you it also has to be right for the
business and the buyer.
Do the groundwork Proper planning, implementation of business improvements
and identifying risks will ensure value is improved and there are no surprises for
the buyer or opportunities to re-negotiate price.
corporate
finance partner
Garbutt + Elliott
Email: rfeltham@
garbutt-elliott.co.uk
Tel: 0113 273 9609
Mobile: 07970 836 080
Assemble and incentivise your team in the run-up period to maintain focus
and growth.
Make yourself dispensable It is key that the value is in the business and will
continue and doesn't reside with the exiting owners, their skills or customer
relationships.
Appoint an experienced adviser A good adviser will be worth their weight in
gold in terms of delivering the right result, managing the process, advising on
tax and maximising value for the shareholders.
Accentuate the positives (eliminate the negatives) Getting the right selling
story across is paramount to capture the attention of buyers. In a growth situation
this will encourage bidders to focus on the forecast and the future opportunities.
Find buyers likely to pay a premium In-depth research of the market you are
in and wider less obvious buyers who may see strategic value will pay dividends
in terms of a premium to the norm on sale proceeds.
Create competition A defined process with controlled timelines will enable
buyers to be pitched against each other and improve upward negotiation of
offers. In my experience this could itself add 20% to the price.
Keep the business on track Use your advisor to run the process, keep
management focussed on the business.
Manage the emotions Select an adviser you feel comfortable with as part
of your team. There will be many highs and lows through a 6 month plus process.
Emotional aspects and fit with the buyer and their team are all important for a
successful sale, handover and integration.
Q&A
Richard Feltham
Table of Contents for the Digital Edition of Yorkshire and North East Dealmakers Guide 2016