Something that hasn’t changed during the Covid crisis is the need to prepare properly for a sale.
Nothing disrupts a process like ‘a surprise’ and now more than ever, being able to demonstrate trading fundamentals, the impact of Covid-19, the businesses’ true working capital requirements and articulation of future sales projections are critical.
To make an analogy, if you were selling your house would you invite potential buyers to view it without having fixed a leaky roof or make the garden look its best?
Addressing the issues that a potential buyer may wish to understand early in the process, can help you preserve value.
Vendor Assistance services may include:
- Undertaking an early review of financials
- Financial data book preparation or information pack
- Assistance with managing the data room
- Assistance with Information Memorandum preparation, management presentations and business plan
- Financial model build
- Management of the third-party DD process
- Assistance with financial aspects of the SPA negotiation
Taking things a step further, you may wish to commission a Vendor Due Diligence (VDD) report which is an independent report instructed initially by the vendor but designed to satisfy investors’ need for information and independent evaluation (due diligence) and is carried out from an investors’ perspective.
VDD can give even greater control of the process allowing you to drive the timetable and minimise disruption to the business and is especially useful if a competitive auction is likely as all prospective buyers are issued with identical information.
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Enjoyed this? Read more from Nicola Merritt, Cortus Advisory Group