Preparing to Transact
The Challenge: The process of preparing your company for sale or merger is complex and requires much more advance work than generally assumed. The closing table is no place to learn the key aspects of creating value and avoiding the pitfalls that erode value. By then, if you haven’t prepared, the battle is probably already lost and you and your team will suffer the consequences.
The negotiations over business valuation are an integral part of an M&A transaction and, it is true, how you handle them will determine how well or poorly the process works for you. But prior preparation will allow you to bring much more ammunition to the table and be in a much stronger position to defend your valuation.
Our Approach: The Federal Circle gives you the essential and timely information and practical knowledge you need to successfully prepare for and navigate the M&A process. We can show you how to develop strategic value which will survive the negotiation and closing process and help you to maximize the return for you and your shareholders.
Our engagements begin with a through assessment of the current condition and potential of your company. We focus on such issues as:
- Depth, strengths and weaknesses of your team
- The present and future revenue with an emphasis on recurring revenues and free-and-open contracts
- Your revenue pipeline
- Product diversity
- The intellectual property, competitive advantages and in-process development
- Your customer diversity and the strength of your client relationships
- The company’s internal accounting, controls and forecasting
- Strategic alliances – both current and potential
- In-house industry expertise
- Strategic plan
- Capitalization table
- Investor participation and controls
- Likely acquirers
Our focus is on those things which you can accomplish which will create value which will survive the negotiation and closing process.
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The process of preparing a company for transaction is much longer than most CEOs think. many of the steps that create enduring value have to begin well before putting your company on the market. These days the diligence process is par more extensive and, if you have neglected key areas, you will end up having to settle for a much lower price. Fortune favors the prepared.
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Our planning process begins during the diligence phase. The objective is to develop a strategic plan to increase the value of your company to potential buyers. As a result, we create a plan which will increase value and the price you receive
