Growing to sell your firm in the future?
If you are thinking of selling your knowledge-led business in the future, or want that as an option, be it in 2 years or 5 years’ time, you need to be planning and executing for that event now. Why? Because most firms don’t make it. With the right guidance you can. The probability of being attractive in the market at the value and exit terms you want will be greatly improved.
What might be driving your decision?
There are likely to be a number of important issues on your mind, such as:
- Exit Strategy – what is the plan to meet my personal and financial objectives?
- Valuation Ambition – what is my business worth now and where could it be in 1, 2, 3, 4, or 5 years?
- Financial Growth – I want to make sure that we have three good years of growth before I sell
- Equity Growth – alongside scaling, I want the valuation multiple to grow towards 10 x profit and beyond
- Sale Ready - when I'm ready to sell or be approached, I want to be in control and decisive
- Transaction Ready – I want to enter the sale process well prepared to defend value and succeed
What’s the process?
Equiteq will help you address all of these issues. We have the enabling tools and expert advisory capability to help you navigate on the journey to your exit destination, with no wrong turns, a clear route-map and course corrections to avoid looming value growth blockers. There are three key stages in the journey:
1. Strategic review operational assessment
We begin with an operational assessment of your business which will draw a line in the sand and help you and us understand how your operational strengths and weaknesses align with best practice, will be viewed by a buyer, and impact valuation. Aided by our proprietary Equity Growth Accelerator (EGA) software, in a moderated assessment, we will work our way through 80 Measures of our Equity Value model and discuss what they mean in the context of your business. We will benchmark your business against peers and best practices, identifying strengths and weaknesses in firm performance. We will then prioritize a roadmap to identify opportunities and address operational risk.
2. Strategic review valuation
Building on the operational assessment, we will use our valuation model to evaluate the market and your financials and also identify any risks to a successful transaction and price integrity. We will produce a risk adjusted, market premium and synergistic valuation, custom revenue and EBITDA multiples and will model future EBITDA and revenue scenarios, showing the impact on valuation.
3. Prioritization and implementation of work streams
Once the strategic review has been completed we can develop a project plan based on operational strengths and weaknesses and your exit objectives. We agree the plan with you and will work together to begin implementing the necessary changes to drive equity value.
Subsequently you will be ready to enter a sale process at maximum value and saleability.
How do we make a difference?
In the knowledge economy a very small percentage of firms scale to be the size, or shape to be either attractive to buyers, or valuable enough to make it worthwhile running a sale process. Why? Although knowledge-led business leaders are highly capable people, they are typically challenged by a range of factors unique to the knowledge economy. Equiteq knows how to surmount the challenges and create equity growth alongside financial growth, where the latter does not always drive the former.
Why use us?
We’ve done this kind of work with over 300 firms around the world and seen it all. You know your business and we know ours. When you add your sector expertize, with Equiteq’s experience in growing value and realizing equity in the knowledge economy, it will be a powerful combination to ensure success.