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Our thoughts on the latest developments impacting your business.

Finance needs for private business owners

Financial support required for my businessIt’s not every day that you find yourself asking, where can you secure further financial investment from? But if you’re a private business owner needing a cash injection, you’re sure to consider your bank, crowdfunding, family and friends, grants, or even your own personal reserves. However, the other option worthy of consideration, is that you tie an investment to your exit regardless of your age.

Most business owners don’t look to exit until they’re reaching retirement, anywhere between the ages of 60 and 65. But this can often be too late as your urgency plays into the hands of the acquiring party. So, a cash injection which funds your plans earlier becomes a more appealing proposition and makes repeating it easier. More importantly though, it increases the prospects of getting the deal over the line with a better return for shareholders.

Investment

For the right businesses, we’ll broker a highly attractive deal that releases a minority stake to the most suitable acquirer; one that can provide the infrastructure and resources to assist with the development of the business. Whether it’s an international sales presence, stronger brand, additional offices, or even more capital, we’ll help identify the perfect partner to create the catalyst for sustainable growth and add further value to your team’s vision; and with the minority stakeholder acquiring your business earlier and over a longer period, you’re better placed to leapfrog the competition far sooner.

Known as ‘acqui-hire’ (‘part acquisition’ and ‘part-hire’ of third-party resources) it’s different to an ‘earn-out’ and is a highly attractive solution that de-risks the business until it’s under new management. With support and advice dispensed through our partners (a senior team of corporate financiers), you’re in very good hands. Furthermore, we have strong relationships with some of the most astute professional service advisers in other exit-related areas (such as intellectual property, tax planning, employment law and corporate governance) to bring further reassurances.

Acquisition Pitfalls

For nearly twenty years we’ve delivered improvements through our Trident service (Operations, Technology and Human Capital) that remove acquisition pitfalls. We’ve built brands from where they once were, and we’ve got to know them very well. Now through our added value service we can support them with direct access to over 8,000 buyers using a network of international partners and world-class research. In fact, many of the deals can open up overseas buyers that most of our competitors are unable to offer.

However, genuinely interested acquirers will attribute value across many parts of your business; your credible opportunities, current contracts for recurring income, sustainable profits, barriers of entry, low operational gearing (debts), supply chain, current assets and your senior leadership team, so it’s here where we bring a focussed approach.

At Genesis, we offer a ‘one-stop shop’ solution that helps you navigate all the twists and turns of a business sale or fund-raising exercise. We’ll look at what we believe your business is worth based on its EBITDA, its assets, and transaction analysis and your growth forecasts as well as the external factors surrounding the business and the market in which it operates (including your competition), and then finally, we’ll conduct some research amongst the possible buyers (both domestic and overseas) to see if your company fits their acquisition profile. Once we’ve looked at all these metrics, we’ll have a range of minimum and maximum values from which to offer you a realistic summary and valuation.

Auditing

Investors will want to be confident that your management reporting is accurate and timely if you’re to secure their funding. Unfortunately, this is something many businesses often fall short of.  So, if this is you, it’s likely you’ll need some additional support from us first. It’s not just about the people you employ either but about the operational systems that you have in place. Good processes reduce risk and increase scalability and will mean you’re more likely to secure a deal.

Contact

You can select a time in our diary for a conversation by visiting the ‘Services’ page of our website https://genesisdm.co.uk/services/. We look forward to hearing from you soon.

Biography

Nigel was voted ‘One of Britain’s Top 50 Small Business Consultants’ & is both a Fellow of the CIM; a Chartered Marketer and an Ambassador for private equity & exit planning

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