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you understand what’s valuable to a buyer The main areas of advice you will need
and what’s not. They know who’s buying, Members before, during and after exit are Corporate
the right time to sell, and how to prepare highlight the Finance, who tend to be the lead adviser;
your business to achieve the highest importance Legal, for the agreement and warranties;
valuation and multiple. They can also of personal Accountants, for tax advice; and Wealth
chemistry with
advise on methods of valuation used by advisers as you Management, for personal financial
trade buyers or private equity. will be working planning (see Planning for life after exit).
closely with them
THE VALUE OF ADVISERS on one of the CORPORATE FINANCE ADVISERS
Various advisers are involved in selling most stressful The role of the financial adviser in
a business, from legal and corporate projects you have the process includes everything from
finance to wealth management. To get ever undertaken. preparing the Information Memorandum
the most value from them it’s important to (IM) and Data Room to approaching
understand their role in the process and potential purchasers and structuring the
the various ways they can help you. sale. They are also M&A professionals and
so add huge value to the process through
Members who have gone through the sale knowing how to play the game.
process say that the main advantage of
using corporate finance advisers is that Lead advisers fall into several broad
they are professional negotiators who can categories. Investment banks and the
help you to get a better deal. They can
play the ‘bad cop’ to your ‘good cop’ to
maintain a good founder to investor/buyer The best multiples are from a clean
relationship. They can provide an overview When chooising business with its house in order, and the
of the market and buyer interest to a lawyer, get fee sooner you speak to an adviser about
present you in the right way. They can flag quotes up front your plans the sooner they can flag any
anything on the horizon that could impact and either agree issues and address them before the
the sale or valuation. They can defend you a fixed fee based process begins. The best financial result
on time costs or
from the buyer’s advisers and help you to contingent fees comes from setting expectations early
prepare due diligence to prevent the sale with an ‘abort
falling through. Ultimately, you get what costs’ element in and tax planning to maximise wealth on
you pay for. Members have said the best case the deal falls exit.
advice more than paid for itself in the through.
capital value uplift or avoided pitfalls. Edward Persse, Partner, Osborne Clarke

PARTNER INSIGHT: THREE • Get a strong management team: A team A team
PARTNER INSIGHT: THREE
• Get a strong management team:
WAYS TO MAXIMISE VALUE that can take the business to the next
WAYS TO MAXIMISE VALUE
that can take the business to the next
level, which has a track record in doing
Caroline Belcher, Partner & head of exit level, which has a track record in doing
Caroline Belcher, Partner & head of exit
that, will really come across in meetings
planning, Cavendish that, will really come across in meetings
planning, Cavendish Corporate FinanceCorporate Finance
with buyers and show how they are driving buyers and show how they are driving
with
value. And they will help you sell into your
value. And they will help you sell into your
buyer, showing how they can make two
•
• • • Differentiate your Differentiate your buyer, showing how they can make two
business in your
business in your and two equal six.
and two equal six.
market: Demonstrate Demonstrate
market:
• Sell your growth story: What’s the What’s the
your leadership in your • Sell your growth story:
your leadership in your
marketplace, your
marketplace, your potential of your business and your track-
potential of your business and your track-
value proposition, and
record in that growth story? Is it new
value proposition, and record in that growth story? Is it new
products or services, new industries or
what type of business products or services, new industries or
what type of business
markets, or is it international expansion?
you are. Then position
you are. Then position markets, or is it international expansion?
When we sold Gu, for example, they
your business to get the maximum multiple of
your business to get the maximum multiple of When we sold Gu, for example, they
EBITDA. For example, a travel business may
EBITDA. For example, a travel business may entered France to show how they had
entered France to show how they had
get a multiple of 6 or 7 but positioned as a proved themselves in an international
proved themselves in an international
get a multiple of 6 or 7 but positioned as a
market and could do the same in others.
luxury service business may have a double-
luxury service business may have a double- market and could do the same in others.
digit multiple. If you’re a standard contract If you’re selling a roll out story, and you’ve
If you’re selling a roll out story, and you’ve
digit multiple. If you’re a standard contract
done it a few times already, you can justify
or permanent recruitment business, consider
or permanent recruitment business, consider done it a few times already, you can justify
the huge growth opportunity.
launching a consulting arm to boost valuation. the huge growth opportunity.
launching a consulting arm to boost valuation.