Advisory & corporate finance
At a time when productivity is drifting, costs are being squeezed and revenues are more challenged, it can be worth reflecting on how effectively aligned productivity is with people engagement. Here’s a quick self assessment to understand how you are doing: If you honestly think you are performing well against the above, you’re onto something. … Continue reading Hope is not a strategy for people engagement and productivity
Build and buy strategies are where a business acquires other businesses, very often to help increase value ahead of an exit. They are not uncommon for private equity or companies trading on a public exchange and can also work for smaller businesses but are less common. Build and buy strategies can be an attractive way … Continue reading Thinking about Build and Buy?
If you are a scale up business, you will already be familiar with the challenge of growing with limited financial resources. Our article ‘Considerations for Scale-ups when raising funds’ outlines some of the common solutions in addition to fundraising support we provide clients. Do you lack financing to sufficiently scale? The Scale Up Institute notes … Continue reading Access to Finance Challenges for Scale up Businesses
Value creation is an integrated approach to optimising shareholder value. Value creation is based on developing and applying value drivers (sometimes called ‘value builders’) that help articulate commercial development and also support higher transaction values. By not drawing on the experience of best practices successfully applied by other businesses, founders can risk leaving money on … Continue reading Time to focus on value creation
In short What the seller needs: a rushed sale cuts competitive tension Market conditions, including trading seasonality Opportunities: being able to act when the right buyer appears Tax: an unsettled regime pulls transactions forward The state of the business, and the preparation still owed Preparation for selling a business will obviously need to take into … Continue reading How long do you need to sell your business?
In the absence of a clear guide, many founders and their boards will chart a steady and linear progression in value, supported by revenue or profit growth, starting at the implied valuation of the initial investment and heading towards a target valuation with valuation reference points to validate this approach. In determining the target value … Continue reading How do you drive value when fundraising?
In short The discount applied often moves value more than the multiple Transaction comparables: multiples paid for similar businesses Trading comparables: multiples of similar quoted businesses Discounted free cash flows: the present value of future cash Net assets: the market value of assets and liabilities Business valuations are typically assessed by using one or more … Continue reading How do you drive value when selling your business?
“Only 0.05% of startups raise venture capital” (Entrepreneur). The market is notoriously difficult for start ups but can be equally challenging for scaling and venture stage businesses. The risks of getting it wrong are not just that you don’t raise enough funds but also include giving away too much equity, incurring high investor costs or … Continue reading Considerations for Scale-ups when raising funds
In short The conditions run to the termination date, not the share issue Appointing a shareholder, or their relative, as a director Receipts of value, including a buyback from any shareholder A change or diversification of trade beyond the 20% rule Acquiring an older company, which moves the first sale date Changes to shareholder rights, … Continue reading Ongoing risks for venture capital reliefs such as EIS
In short Six of the ten lessons that matter most Plan early: when, where and how to grow Reallocate resources; half-baked is a distraction Understand the customer beyond ‘truthiness’ Embrace digitisation, and the talent it needs Build a network of advisors; be wary of sycophants Finance should accelerate decisions, not just report them As outlined … Continue reading How to return to growth? Ten growth hacks