Preparing for Sale
Once you decide to sell your business, you have one last chance to maximize value. The degree to which you prepare can either make or break your sale process. To maximize value, you need to know answers before asked by potential buyers, run your process as fast as possible, and avoid costly stalls - all while continuing to run your business at peak performance.
You shouldn’t try to do it alone: BluWave’s best-in-class network of private equity-tested resources, including specialists in outsourced analytical services, sell-side diligence providers, and force-multiplying interim resources can bolster your team and optimize your outcome.
Preparing for Sale Solutions
Sell-Side Quality of Earnings
One of the top reasons why companies fail to sell and/or purchase prices get reduced is the financial figures aren’t consistent with those presented when scrutinized in due diligence by a third-party accounting firm. Some buyers will proactively look for foot faults, others identify true disconnects. Your prior audits aren’t enough. Take this risk off the table by having a credible third-party accounting firm perform a preemptive review of your numbers: the risk-reward trade-off is a no-brainer. BluWave can connect you with the best PE-tested groups for this job.
Sell-Side Market Studies
Don’t try to sell your company unless you know the size of your directly addressable market, how fast it’s growing, what your market share is, and how you stack up against your competition -- you will be asked these questions. Let BluWave connect you with the sell-side market study groups that are private equity-tested, have the industry expertise you need, the credibility that is required, and the budget that you want. These groups can also help you identify and present credible growth and value opportunities that you didn’t even know were possible or think to project.
Outsourced Financial Analyses
Most buyers will need to know your revenue and profitability by customer and product over time, as well as all sorts of other unique requests that you couldn’t fathom anyone would ever want to know. Bring in a seasoned financial analyst expert from BluWave’s network to credibly construct these answers before you’re asked, have to pause your process to find them out, lose momentum, and risk value.
Once you know about your market and margins, you need to translate it into a credible five-year annual and 24-month monthly financial projection. Hire professionals who can construct a detailed financial model to enable buyers to reach the appropriate valuation for your company. BluWave can connect you with the experts to do this for you credibly, confidently, and quickly.
Data Room Preparation / Organization
When you sell a business, buyers have countless requests that will only grow by the day. Preparing the baseload of information and keeping up with ad hoc requests is a tedious and detail-oriented task that is very important. However, this job should not be done by your CFO, Controller, or by investor professionals, as their opportunity costs are too high. Outsource this to excellent professionals who can get this critical work done while enabling your other team members to continue to run your operations and/or focus on more strategic imperatives. BluWave can help.
Investment Banker Selection
It’s hard to know who the best investment banker is to sell your company. For an event of this magnitude, don’t just choose the first person who calls or the closest person in your social circuit. BluWave uses its proprietary network, years of private equity experience, and robust datasets to assess a sell-side intermediary’s capabilities, industry experience, and appropriateness for the size and scale of your business, allowing us to connect you with the right investment banker to sell your company at a value maximizing price.
Sell-Side Presentation Coaches
Tom Brady has all sorts of coaches that he relies on year after year and he’s one of the greatest of all time. Most business leaders don’t have significant experience, don’t train or seek guidance on sell-side presentation skills, and/or don’t know how to expertly convey the critical elements of their company during an aggressive and often invasive sale process. And yet this is one of the most important economic events of most business leader’s career. Bring in a coach that regularly advises private equity-backed management teams on the skills needed to effectively communicate the value of your company -- BluWave knows the best regarded groups in the industry.
Other Sell-Side Resources
The best sellers know the answers before they’re asked. Investing a little money upfront in knowing-thyself inevitably pays dividends by pre-identifying risks and enabling you to run the most efficient and value-maximizing sell-side process possible. Key sell-side diligence areas used by sophisticated sellers include sell-side market studies, tax reports, IT assessments (particularly if you have home grown software), voice of the customer studies, and cyber-security reports. Identify your key unknown risk areas and call BluWave for help.
Don’t See What You Need?
BluWave has a dedicated staff of research specialists who utilize the private equity approach of defining markets, mapping competitive landscapes, and assessing relative strengths and weaknesses to identify best-in-class resources for its customers' niche needs. We do custom searches every day for our private equity clients and we’re very skilled at it. Let us expertly identify, vet, and connect you with the right resource.
Maximizing Purchase Price with Data Analysis & Organization
Client was engaging an investment banker to sell their company in a competitive process. They knew that they would need to be prepared to answer significant questions about the business and that any delays during the process could impact value. However, they did not have the internal expertise or manpower to sufficiently prepare for and support an aggressive sales process.
We connected the company with expert interim resources to support financial modelling, market sizing, profitability analyses by customer and product, organization and categorization of customer contracts, organization of data rooms, and ad-hoc analyses during the sales process. The expenses for preparation were one-time in nature, treated as add-backs and did not impact their representative historical earnings for valuation purposes.
Client Benefit / ROI:
The client was prepared in advance for likely questions, enabling them to both run an aggressive, streamlined sales process and manage the business in the meantime. The company had multiple interested parties that drove a purchase price at the top of their valuation range.
Here's How We Help
Preparing for Sale Just Got Easier
Don’t try to juggle the responsibilities of pleasing potential buyers with performing last-minute tweaks and optimizations: rely on BluWave’s pre-vetted, best-in-class service providers to test and develop exit strategies, identify incremental opportunities, and consult on business transition matters. Help from the top-tier BluWave network will take the burden of valuation off your shoulders and build buyer-side confidence simultaneously.