Your focus as an entrepreneur is on growing your business. Exit might not be at the forefront of your thinking. But when you do decide to sell, you’ll want to be sure you’ve done everything possible to maximise the value of your business.
We know what sells. At Cavendish we’ve developed a unique Exit Planning process that we put in place between 12 and 36 months before the start of a sale exercise. Over the past 25 years we’ve honed and refined this process, based upon our experiences advising on the sale of over 500 businesses.
A great exit requires proficiency in management consulting and corporate finance. Our team is on the cutting edge of both – led by Caroline Belcher, whose decades of international experience have made her the undisputed leader in the exit planning field.
Through our rigorous research, we identity the right buyers for you and help optimise your business from their perspective. That means improving operations, developing a growth strategy, differentiating your offering in the marketplace, structuring management teams in the right way, and hitting EBITA targets. We’ll then position your business to achieve the best multiple.
Asking the right questions
Maximising your value for sale means approaching questions from a different perspective to when you’re running a business as usual. Questions such as:
- Will I enhance the value of my business if I expand internationally?
- Who’s going to be my successor, and what additions to my management team should I make?
- Should I make investments that will increase my multiple as well as EBITDA, such as brand investments and when?
The answers are often not straightforward. Especially in the years following the financial crisis, there has been a flight to quality. Purchasers will apply intense scrutiny to your business.
Our job is to know what they’re looking for.
What we do: Maximising value for exit – The Exit Review has three key objectives:
- To conduct an external assessment of the business to ensure that the client is focusing on the key drivers that will increase its exit price
- To determine the best exit route and position the business in the most appealing way to potential buyers
- To identify any weaknesses a buyer would highlight during the due diligence process
How do we get there? The Exit Review is focused on:
- Obtaining the highest EBITDA level in the specified time-frame
- Positioning the business to maximise the multiple
- Assessing how different buyers will value the business and position it accordingly.
- Managing risks so that they do not affect price
The Exit Review’s key output is a top-level action plan aimed at increasing valuation which includes:
- Strategic plan (organic growth and by acquisition) and operational improvement plan
- Plan for positioning the business to optimise the multiple and fit buyer’s strategy including the valuation of potential synergies
- Actions to reduce due diligence risks are also integrated with the exit plan
- A review and tracking process to exit to ensure that actions are implemented