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Company News:

Beanstalk corporate finance shows Seek4Commerce the way

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Beanstalk corporate finance secures successful acquisition of Everything Legal

Beanstalk corporate finance assists with acquisition of Redeem

Home > Business Exits > Approach to Business Exits - process for divesting businesses

Approach to Selling

At Beanstalk we are passionate about delivering maximum value for our clients and our unique and proven approach reflects this. Our approach  preserves price and therefore maximises shareholder return. As every business is different every engagement needs to be tailored to your exact needs. We immerse ourselves in a select few projects at any one time to achieve the right result.

To achieve the best results we focus our attention in the following ways:

Detailed sector knowledge:

The starting point for every project is detailed sector knowledge. Although many skills associated with a divestiture apply to any industry, understanding the competitive dynamics and positioning is a fundamental strength and clearly differentiates Beanstalk.

Understanding the 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 also 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 business with the shareholders’ motivations and aspirations. It is only at this point can we 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 according.

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 high quality sales material. As with many products and services, presentation can make a considerable difference to enhancing value and maintaining interest.

The most important document is the Information Memorandum (IM) – this key document focuses on the benefits of the vendor’s business and assists the generation of additional potential acquirers. It covers 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 maximised 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. The nature of many buyers is often a surprise to a seller. At this stage it is vital to look at complimentary buyers (not just competitive) and possibly from overseas, not just from the UK.

We 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.

Proactivity is critical at all stages in the process but is probably most important here.

Creating a competitive environment:

Interest from key competitors and complimentary businesses generating will form the essential competition required to maximise the offer from potential acquirers.

There is one factor that influences saleability 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 transaction

- The price of the transaction

- The terms of the transaction

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.

Due diligence:

Beanstalk 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 choice (or perceived choice) impacts on the speed and price of the business sale.

Getting to agreeing 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 Beanstalk.

To learn more about how to sell your business contact us.