OConnor Brokers are passionate about delivering maximum value for our clients, and our unique and proven approach reflects this. Our approach to maximizing shareholder return is different with every engagement, each being tailored to your exact needs. We will immerse ourselves in a select few projects at any one time to achieve the right result.
1. Understanding seller’s motivations
2. Articulating business value
3. Strategically motivated purchaser
4. Competitive environment
5. Due diligence
Understanding Seller’s Motivations
We focus on understanding your business and also the motivations of the shareholders. We spend time getting to grips with the value proposition, future potential and the financial performance of the business before even starting to talk about how we maybe able to assist you.
We then marry our understanding of your particular business with your motivations and aspirations. It is at this point that we can make a series of informed recommendations about the future of your business. Having understood your business we are able to provide a candid assessment on the timing for any divestiture, approach to market and any changes we feel will help impact the sale price.
Whatever recommendations we make, they are specifically tailored to the exact requirements of your business. Naturally, we discuss our findings with you and modify them accordingly.
Articulating Business Value
We then implement the recommendations we make. We market the business proactively focusing on the strategic reasons for purchase that frequently command a premium price.
We work closely with you to capture the magic of your business and put together a high quality marketing campaign. As with many products and services, presentation can make a considerable difference to enhancing value and maintaining interest. Ours will cover the company history, ownership activity, customer base competitive advantages and future potential, as well as many other key areas.
Strategically Motivated Purchaser
We know that to achieve a maximized sale price it is necessary to generate strategically motivated potential acquirers. If you negotiate well with a choice of strategically motivated buyers, then you will almost certainly receive a diverse range of bids.
We identify potential buyers from various databases and our comprehensive network of professionals and other business owners. Our brokers contact, in strictest confidence, every prospective purchaser. We introduce the initial idea without telling them your Company name.
The objective is to generate face-to-face meetings with multiple prospective purchasers to create an atmosphere of competition. Each prospective buyer will be asked to sign a non-disclosure agreement before proceeding. There are no valuations at this stage. Pro-activity is critical at all stages in the process but is probably most important here.
Generating interest and potential acquirers, which will form the essential competition required to maximize the offer from the initial potential acquirer. There is one factor that influences sale-ability more than any other and that is bidder competition. Having a choice of buyers, in effect 'creating a market', is the single most important issue that a vendor can address.
*The speed of the deal * The price achieved *The terms of the deal
Not only must you find a choice of acquirers, but they must also be strategically motivated and financially strong. It is essential that this matter is not compromised. Therefore, you will have to contact many potential acquirers and this will dramatically influence the sale. Failure to address this may result in a poor deal for you.
We continue to handle the negotiations between buyer and seller and their advisors. We manage the due diligence process that ensures the buyers know that what they believe they are buying is what they really are buying. We ensure the business purchaser knows that the seller still has alternatives, because perceived choice impacts on the speed and price of the business sale. We therefore work hard to get you the best deal possible.
Getting to the point of agreeing to a deal is only half the story. There are many things which can either stop or delay a transaction in due diligence. Being prepared for due diligence and retaining control throughout the process is key and differentiates OConnor Brokers.
Start your journey with OConnor Business Brokers with a free consultation today.