The timing of when an adviser is brought in has a significant impact on both valuation and process. Well-judged timing simply creates better opportunities to shape the business, the equity story and the process itself before the market starts paying attention.
This is supported by IHS Markit in its M&A survey, where 87% of respondents said that, in hindsight, they would have prepared their business for sale earlier, while 77% said they would have worked more thoroughly on potential risk areas across finance, tax and HR. This reflects the fact that insufficient early preparation can, in practice, increase the risk of a longer due diligence process and wider valuation gaps between buyer and seller.
In the attached article, which is an excerpt from our Seven Steps manual, we highlight the journey from the initial strategic considerations around raising capital or pursuing a full or partial sale through to the preparation that lays the foundation for a focused sale process involving the most relevant buyers.
If you are considering a capital raise or a full or partial sale, we would be pleased to have a confidential conversation.
The manual Seven Steps can be downloaded in the 'Seven Steps' tap.
Source: IHS Markit
