Businesses considering selling their company may need help with due diligence processes that require comprehensive expertise to achieve the best results. By partnering with an experienced advisor, sellers can level the playing field in negotiations with buyers and ensure that their financial information is properly prepared for a successful sale.

Strategic Planning

Strategic planning involves identifying a business’s strengths, weaknesses, opportunities, and threats. It also helps develop strategies to overcome these challenges. It often requires changing how a business operates to make room for growth. This may mean transferring decision-making to other employees or implementing new processes. Strategic plans are vital to a successful business but must be reviewed and updated regularly. They should be checked every few months, quarterly, or annually to ensure they work as intended.

As business environments become increasingly competitive, companies must accelerate their value creation through acquisitions and divestitures. This process demands deeper insight and analysis to manage a deal’s risks, rewards, and timing. Our team is a leader in providing transaction advisory services, including due diligence, valuation, and tax planning, to support mergers, acquisitions, and carve-outs. We offer a hands-on approach throughout the transaction lifecycle and have experience in transactions with enterprise values of $10 million to $1.2 billion.

Negotiation

The negotiating process can be fast-paced and complex, requiring a thorough understanding of the business and strong interpersonal skills. A well-trained Healthcare Transaction Advisory team can help ensure that deals are not zero-sum by using a collaborative, problem-solving negotiation approach.

This may involve identifying buyers and putting together buyer lists, developing price-defense strategies, and getting letters of intent. The resulting solutions are often mutually beneficial, but it takes an experienced advisor to help the parties find common ground.

Many PPP projects take a long time to reach financial close, with issues such as land ownership, government approvals for guarantees, and unforeseen costs frequently delaying progress. In some cases, this has led to transactions needing to stay within their expected initial end date, which can strain internal relationships and undermine the substantial efforts required to get projects to commercial close. For this reason, the appetite of many transaction advisors to provide ongoing support beyond financial close based on fixed-price contracts must be carefully considered.

Valuation

Valuation determines the theoretically correct value of a company, investment, or asset. This can be performed for various reasons, including M&A, strategic planning, and capital financing.

When evaluating companies to acquire, buyers need to understand their true potential and what the market will pay for it. There are several valuation methods, but most are based on comparing comparable companies and analyzing price/earnings ratios and other value indicators.

Depending on the size of the business, the valuation methodology may vary. For example, the EBITA multiple method compares a business’s earnings to those of comparable companies in its industry. Other methods include evaluating precedent transactions and applying market-based multiples. These valuation techniques ensure the trade is fair for both parties and complies with regulatory standards. Our national team of advisory professionals focuses on the details of your domestic and international transactions so you can focus on the strategic decisions that drive your business forward.

Due Diligence

Due diligence is the research and analysis before a transaction is made. It is often a lengthy process and can involve a lot of paperwork, but it’s essential to take the time to make sure you have all the information you need before making a decision.

For example, a buyer will want to know the tax implications of an acquisition before moving forward with the deal. This might include reviewing the company’s current and past financial statements and the current and future tax status of assets, liabilities, and cash flows.

Another consideration is the company’s corporate structure. This includes ownership interests and the existence of any affiliated companies that could affect the way the business operates or its value over time. It’s also worth considering whether the founders and top executives hold a significant percentage of shares, as this can positively or negatively impact stock performance.