Strategic
Advisory
Unbiased
Advice
Clear
Added Value
Long-term
Perspective
Owners of successful privately owned businesses face a number of strategic challenges that could have a material impact on the ability to have a capital event at some point in the future.
Some CEOs and Entrepreneurs believe that focusing on day-to-day operations is enough to build a business that could be exited at an attractive valuation and at competitive deal terms.
In practice however, there is very often a mismatch between operational excellence and a successful exit. An exit needs to be planned years in advance to ensure that the business is not only well-run but also attractive to external investors.
Typical strategic challenges could be:
Creating a Corporate Governance that makes an exit almost impossible:
Handing out equity to the wrong people
Getting the basics wrong (shareholder agreements, decision processes, veto rights, etc)
Incentivising key staff members the wrong way
Short-term vs Long-term thinking, e.g. implementing the wrong technology, taking investment from a larger corporation, etc.
Underestimating the potential to sell to investors that are currently not on your radar (Private Equity, Family Offices, Overseas Buyers)
Not being prepared for external offers.
Selling the business after it has reached its peak and when it’s declining.
Almost all businesses face strategic challenges. As experienced M&A advisers, we have seen most challenges that could arise in privately owned businesses. We understand that most of these strategic problems require a deep understanding of the business combined with a clear strategic analysis to find the right solution and then a strong focus combined with exceptional people skills to implement the solution.
Case Study:
From “almost accepting an offer” to a successful exit at a fourfold valuation
Service:
Strategic Advice
Sector:
Wealth Management
Revenue:
£8m+
Employees:
c80
Client Satisfaction:
100%
Problem
Our client had been approached by an overseas buyer who wanted to buy the business immediately. Due to different shareholder demographics and interests, the board could not achieve a unanimous decision.
Objective
Dyer Baade was asked to evaluate the offer amongst all other feasible strategic alternatives and make a strategic recommendation.
Solution
We performed a comprehensive strategic assessment for our client, which clearly showed that the existing offer was attractive, but that they also had a number of other alternative options with a much more appealing risk/return profile.
Our client followed our recommendation, rejected the offer and instead implemented a highly value creative buy-and-build strategy to accelerate growth and reach a much more advantageous position for an exit. We supported our clients during the implementation of this new strategy, resulting in a successful exit at a valuation that was circa 4x higher.
FAQs
-
It is never too early to get the right M&A adviser onboard. Get in touch and we will see if we can help you.
-
Yes.
-
Whilst we like to work with businesses of different sizes, there are certain minimum requirements, based on the current state of the market and the specific situation. Get in touch to discuss your specific situation.
-
We are sector agnostic, but have a strong focus on transactions in financial services, professional services, media and other sectors with a strong people element.
-
Yes.