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?

• 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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• 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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