Challenge

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.

Project

Prepare a company for partial sale

Client

Information Planet

What We Did

Set the business up to gain investors while retaining some founder control.

Solution

There were a number of critical building blocks to deliver on, but the challenge was to ensure that the person working with the client was experienced in this area:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Results

  1. The business was setup to gain an investor(s) while still retaining some founder control. Financials and an accompanying IM were produced to ensure the business was produced in the best light
  2. A short prospect list was put together and individuals were approached by us on behalf of the company
  3. The succession was successfully completed, achieving well above the initial expectations when the initial discussions were undertaken.

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

Max VigneCFO | CFO Specialists