| Below
are some critical questions decision-makers should ask:
Key
Questions
Owner Managed Businesses
- Is the sale of your business the most appropriate vehicle
to achieve your objectives?
- What preparation is required to increase the probability
of success?
- Who is the most likely to give you the best deal?
- What are the tax consequences?
- How will you know that the transaction will achieve its
objectives?
Family Businesses
- Who has (or should have) the power and control today and
tomorrow?
- What can be done to ensure the appropriate return on
present assets and protect them in the future?
- How do you ensure the proper distribution of power and
wealth to the next generation?
- How can your estate be planned to protect the business
when some of your children are active in it and some are
not?
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How
we can help
Leadenhall can help you take a systematic approach to the
divestiture process. We are able to support you at all of
the critical steps before, during and after the transaction
as follows:
Succession Planning/Exit Strategy
- Define what the owners and
other key stakeholders want now and in the future
- Identify the most appropriate method to realise your wealth
(e.g. sale to a third party, management buy-out, transfer
of control but not ownership etc)
- Evaluate and test your succession/exit goals to confirm
that they are feasible and compatible
- Develop a written plan for the harmonious transfer of
leadership, ownership and wealth
- Communicate the plan for acceptance and understanding
by all key stakeholders.
Grooming
- Reduce "transaction friction", e.g. clean up the balance
sheet, improve earnings quality by minimising the use of
add-backs, etc
- Identify key value preservation issues (e.g. employee
retention, key contracts, etc)
- Cultivate potential buyers
- Lever opportunities
Support the execution
- Negotiate and facilitate the transaction
- Structure the transaction to minimise tax
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Our
track record
- Review of the financial position and strategies of a major
primary processing business. Assessment of current and future
profitability levels and potential acquirers. Negotiation
of divestment, including complex structures regarding tax
and company entities and assets divested.Valuation of a
rural products manufacturing business and advice on the
sale process.
- Advice on the sale of an SA based medical imaging company
to a public company in return for cash and scrip.
- Acting for the vending shareholders in a management buy
out of a large, established family group of companies and
negotiation of the transaction.
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