Being a CF advisor can sometimes be disheartening, everyone thinks they can do our job (until they are asked to produce a net working capital paper or three statement financial model). It’s probably easy enough to use AI to pull together a basic Information Memorandum but there is much more to a sales process than this and sellers don’t always realise the value that a CF advisor can add to the process.
Here are some of the ways the right CF advisor can add value to a process:
✅ At Quantify Advisors, when we are selling a business. We feel like an extra member of the team, we are completely invested in the process and end up knowing the business inside out. We only take on sales which we really believe in so that we can go out and sell the business and the story with the same enthusiastic and passionate that you have for your business.
✅ We understand the market, we will have worked on similar deals and know what is a good deal and what isn’t. There are a lot of weird and wonderful deal structures these days that sound good on paper but don’t necessarily lead to the best value for a seller.
✅ Exits take different forms, you may want to sell the business to realise all of your hard work, but may not be aware that there are other options. Have you considered growth capital or private equity investment?
✅ We are well connected – Corporates, PE Houses, other advisors. Knowing who the potential buyers are and getting in front of right person is a specialist skill, we use our networks effectively to reach the right buyers.
✅ We know what investors or buyers are looking for, we can pre-empt the questions they will ask and ensure that they are answered correctly.
✅ Even for trained accountants, you practically have to learn a new language when you start in CF, cash-free debt-free, locked box, enterprise to equity bridge etc. CF professionals understand these concepts and know where value can be won and lost. If you don’t fully understand the deal structure, how do you know if it’s a good deal?
✅ A CF advisor will completely manage the process and allow you to get on with running the business. Selling a business is enormously time consuming, from the marketing stage to preparing the right financial analysis and answering diligence questions. Have a CF advisor who is capable of taking all of this off your hands, means you can concentrate on your day job. Too often we see trading dip during a sales process as Management’s attention is focused elsewhere.
Entrusting someone to sell your business is a bit like letting them babysit your child. You have to find someone you can trust 100% to be on your side and someone who will approach selling your business as if it were their own. Also handy if you like them, as you’ll be spending a lot of time together!
Share this article:
