“We see a lot of businesses for sale, that frankly don't measure up to the owner's expectation. They are rarely investor-ready as the owners have thought a great deal about running the business, but not much about exiting it. As a third party, we will bring not only a complete external resource to build the company up, but also an unbiased opinion. We can work on those areas that will often add significant value to a business, areas that the owner would perhaps not have bothered with or noticed as being important. The result is often a much higher price tag”
Our client is a well-respected, astute business renowned for innovation and service. The owner had spent years building up a successful company and wanted some partial exiting as well as additional capital to grow the business.
The brief for our CFO Specialist was to explore options for a possible buy-in or joint venture and to extract maximum value for the part of the entity that was going to be sold.
Information Planet researched a few different business, looking for the one that could offer them the best combination of expertise and delivery.
After talking with us and some similar businesses, they determined that we we're the best fit to help them sell part of their business. They decided to go with us because of our extensive experience, proven results and ability to place a part-time CFO in their business that would become part of their team until they achieved their results.
Our solution was to place a CFO in the business that was experienced in getting business ready for sale. We knew that this business would need someone who could get their current and historical accounts in order, prepare these accounts for sale and to develop a prospective buyers list for this entity.
The CFO we chose was one of the most successful in this area in the country; his background saw him build his own family business to a revenue stream of over $100m and then successfully exit to a major multinational who added this to a listed company.
The first task was to get the accounts up to ‘investor ready’ standard, which involved overseeing internal resource to produce historical accounts that were of a sufficiently high standard to meet potential investor scrutiny.
However, paramount within all this, was to ensure all financials reflected the company in the best light from a potential investor aspect. It is one thing to produce a set of accounts for tax, another to set the company up financially to sell.
We also evaluated investor demands and expectations and reflected those in all the accompanying documentation. A considered approach to investor marketing moves well beyond simply setting up financials.