Selling your firm?

You may have been approached by a strategic buyer or investor interested in acquiring your knowledge-led business, or you may have reached a point in your firm's lifecycle when you are ready to sell your business. You and your fellow shareholders will want to ensure your exit strategy delivers the best outcome personally and collectively for the business.

What might be driving your decision?

There are likely to be a number of important questions, challenges and opportunities on your mind, such as:

  • Maximum Valuation – what is the maximum valuation of your company and how can it be achieved in a sale process?
  • Optimum Timing - Am I making the right decision to sell now or sell later?
  • Right Strategy – I want to be well informed on options to deliver shareholder objectives
  • Best Buyer – Should I go narrow or wide to find the best buyer for the firm?
  • Least Risk – I want to execute a sale process that will complete as expected
  • Preferred Terms – I want maximum value up front and great earn out conditions

What's the process?

These are the three stages to an Equiteq M&A process and what they achieve:

Note: If you are selling to a single buyer, not all of these stages and steps will apply

Prepare – Create the environment for a premium business valuation

  • Identify and mitigate risks to price diminution and the probability of completing successfully
  • Identify the buyer categories, synergy characteristics and target acquirer list
  • Create the value propositions and materials that will excite those buyers
  • Optimize EBITDA figures to maximize the company's valuation potential
  • Compile the evidence, content and data that supports the story

Engage – Attract a wide pool of hungry buyers

  • Increase buyer choice
  • Execute synergy arguments and business cases with buyers
  • Enhance price through competition with shortlisted bidders
  • Lock value into Heads of Terms with the preferred bidder

Deliver – Defend business value through due diligence and close

  • Maintain price agreed once into exclusivity with a single buyer
  • Negotiate detailed earn-out and commercial terms
  • Tightly project-manage through to completion of the agreement

How do we make a difference?

Half of what we do in a sale process will be consistent with traditional M&A advisors. However half is unique. Selling a consulting firm is unlike any other type of business, with many nuances that make profound differences. The assets in a consulting firm are largely intangible and most of the value is in the future profits relating to revenue you have not yet sold or generated. It therefore requires deep skills and buyer knowledge to translate what would normally be seen as a high risk acquisition into a compelling value proposition to a buyer. Preparing and selling consulting firms is our day job and yours is running your business, together we will make a good team.

Why use us as your M&A advisor?

Equiteq’s deep domain expertise in the knowledge economy M&A translates into superior valuations and better deal outcomes. With most of our fees contingent on successful completion and the deal terms agreed, we multiply the value of our fees many times over. When we meet, we expect you to rightly challenge us hard on how we outperform the industry and deliver at least 50% more value than non-specialist advisors.




Knowledge Economy Global M&A Report 2019 - Infographic

A summary of the latest transactional and equity market trends for owners of consulting businesses that are preparing for sale.

Download here