Pre-Sale Assessments & Divestitures for Sellers
When selling your business, maximizing your value is paramount. Fisher Specialty Advising bring decades of enterprise M&A experience to the table and can guide you through the entire process. We offer expertise from pre-sale assessments, ensuring your strategic goals are met and any "gotcha's" that can devalue your business are identified and mitigated. We can work with you every step of the way, offering not just advice, but hands-on execution through the divestiture process.
Case Study: Pre-sale assessments can prevent offer devaluation.
In a previous role, Frank and his team were brought in to assess a potential acquisition target in the specialty chemical sector. While the target company presented a compelling narrative of growth and profitability, our due diligence revealed several critical weaknesses. Had the owners conducted a pre-sale assessment and mitigated these risks, this devaluation could have been avoided.
Services for Sellers
Before taking your business to market, understanding its true value and addressing any potential weaknesses ahead of time is crucial. Our pre-sale acquisition assessment provides a comprehensive evaluation of your business, identifying both its strengths and areas of improvement that could impact valuation. We help you answer the critical question: "What is my business worth?" Our process includes:
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Valuation Services: We employ proprietary methodologies to determine the fair market value of your business, taking into account financial performance (including a detailed look at your assets), market conditions, operational performance, and future growth potential—among other things.
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Red Flag Identification: Our experienced team meticulously examines your business for potential red flags that could devalue it in the eyes of potential buyers. These can include:
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Customer Concentration: A heavy reliance on a small number of customers can signal risk. We analyze customer contracts, recurring revenue streams, and the ease with which customers could switch suppliers.
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Supply Chain Vulnerabilities: Single-source dependencies, lack of firm contracts for critical materials, and exposure to force majeure events can create uncertainty. We assess your supply chain resilience and identify areas for improvement.
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Manufacturing Inefficiencies: Outdated assets, inefficient production processes, and high costs can negatively impact profitability. We evaluate your manufacturing operations and identify opportunities for optimization.
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Back-Office Inefficiencies: Transactional bottlenecks in your back-office operations can hinder scalability and reduce efficiency. We assess your administrative functions and recommend improvements.
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Sales Model: A sales model heavily reliant on personal relationships rather than product competitiveness can be a red flag. We analyze your sales strategy and identify areas for strengthening product-based sales.
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Key Personnel Dependencies: Over-reliance on a few key individuals can create transition risks. We assess your team structure and identify opportunities for knowledge transfer and succession planning.
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Permitting and Regulatory Issues: Environmental permits, zoning regulations, and other compliance issues can create unexpected costs and delays. We review your regulatory compliance and identify potential liabilities.
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Energy Contracts & Labor Costs: Fluctuations in energy costs and local labor rates can impact profitability. We analyze your cost structure and identify potential risks.
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Remediation Strategies: Once we've identified potential weaknesses, we work with you to develop and implement remediation strategies. This might involve diversifying your customer base, strengthening your supply chain, improving operational efficiency, or addressing regulatory issues.
By proactively addressing these issues before going to market, you can significantly enhance the value of your business and increase the likelihood of a successful sale.
