Description
We are a holding company that acquires assets, creating a management plan or work with incumbent management to elevate the asset's value or solve issues restricting its growth.
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We work in conjunction with consultants from various sectors and our own analysts, in order to understand, analyse and build a strategy for growth or asset rescue.
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We work closely with our sellers, for the fulfillment of their exit needs and will be as creative as possible, using investment banking techniques, to get the best financial outcome for sellers and a sustainable plan for the asset.
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We believe that by understanding what finance actually is, how numbers work and the creative options available to sellers and buyers, we can make mutually beneficial deals.
An example of the sequence of events
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Email to make contact and establish an interest in activating your an exit strategy without any substantial details or disclosures.
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We both sign the Non-Disclosure Agreement (NDA) and email it with a scan or copy of an ID.
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Email with some required details of the asset that might be sold.
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Email of a brief assessment of your sector and a few possibilities of gaining funds to acquire the asset and assist in your exit strategy.
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Telephone conversation to discuss the previous email and establish verbal communications.
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Meeting in person at your office/facility , our office or a location suitable to plan a basic outline for our coordinated efforts to complete a mutually beneficial deal.
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Then the usual meetings, full due diligence, legals and both of our people dotting the i's and crossing the t's.
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Post deal communication and maintaining our business relationship.
Your business options
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Some purchase options
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Your exit strategy
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State of your business
Some purchase options
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Purchase a company with cash funds. Buyer has the negotiation advantage.
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Gain Investors to back buying your business. There is a fiduciary obligation to Investor's opinions and expectations.
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Float a share of the business in a small trading market for share capital. Regulation hoops to be jumped through and very costly.
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Leveraged buyout
A leveraged buyout is one company's acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. Can be difficult to understand but usually yields the highest valuation.
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Management buyout
A management buyout is a form of acquisition in which a company's existing managers acquire a large part, or all, of the company, whether from a parent company or non-artificial person. Management-, and/or leverage d buyout became noted phenomena of 1980s business economics. Owner's can feel a sense of not being in control but yields a good valuation.
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Management buy-in
A management buy-in occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company's new management. A management buy-in team often competes with other purchasers in the search for a suitable business. Can yield a great valuation, however the incumbent management team usually is replaced.
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Financial Restructuring
Restructuring is an action taken by a company to significantly modify the financial and operational aspects of the company, usually when the business is facing financial pressures. Restructuring is a type of corporate action taken that involves significantly modifying the debt, operations or structure of a company as a way of limiting financial harm and improving the business. Can place the company in a more tax efficient position and assist in an LBO.
Your Exit Strategy
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Plan your exit
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Prepare your paperwork and accounts.
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Your expected valuation?
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Consider creative forms of financing and that an exit is merely an exchange of cash or cash equivalents for a liability.
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Always leave room for growth, as it gives the buyer a financial path.
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Have a team around you that have been empowered to maintain smooth operations while you absorb your exit possibilities.
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Listen to your Broker by absorbing their knowledge, considering their advice and focusing on what options they bring to the table.
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Gain tax advice as different exit options have different tax implications. Possibly consider restructuring your company or ownership to be as tax efficient as possible.
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Consider, with legal and accounting advice, the best and worst possible scenarios. And create a strategy that means the worst scenario is to achieve an exit with a valuation you find acceptable. And that the best scenario, maximises your company valuation.
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Consider the economic climate and how the expected economic conditions will affect your company?
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Consider the impact upon your family and social circle?
State of your business
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Pursuing other opportunities.
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Distressed business.
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Retirement.
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Next of kin have other interests.
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Tax reasons.
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Corporate takeover.
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Additional capital required for expansion or to alleviate financial pressures.