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Taking time to ready a business for a future sale can add significant value to the ultimate transaction. That is why SEACAP offers business owners a structured, prep-for-sale service. It's like having a personal fitness trainer for the business … someone who coaches and conditions it for a future event.
Over a multi-month period, SEACAP helps build value through business planning, improved management processes and better financial practices. Helping to strengthen the balance sheet and clean up the income statement. SEACAP also offers an appraisal of the business and provides direction for the owner on ways to increase value by pulling certain triggers. This goal-directed, "get ready" service for the business owner who wants an exit event in the future will maximize the business' value and streamline the sale process. Here's how and why.
SEACAP is committed to helping its clients develop meaningful and effective business plans.
A business plan forces an owner to continuously face the issues critical to success. It serves as a road map for taking a company to the next level as efficiently as possible. And it demonstrates to a purchaser that the company has focus and direction.
SEACAP coaches its clients on how to control the key management factors that affect value.
Business buyers hone-in quickly on the quality and effectiveness of current management. They assess the strengths and weaknesses of both departing and remaining personnel and these observations have an impact on the overall value of a business.
SEACAP helps Clients position their balance sheet and income statement for maximum strength to accurately reflect the performance of the company.
The balance sheet is a company's foundation. It requires solid footings. Likewise, the income statement provides evidence of a company's ongoing flow of business. It provides a window for projecting future earnings. Together these strategies enhance sale value.
- Initial Value Analysis: Appraisal of the company, creation of valuation formulas for continuous monitoring, identification of performance areas that need improvement, early definition of target acquirers
- Financial Statement Analysis: Monthly review of margins, trends, inventory turns, cash flow, etc.
- Budgeting, Forecasting and Business Planning
- Cash Management: Collection procedures, accounts receivable and payable analysis
- Liaison with Outside Professionals: Banker, accountant, attorney
- Assistance with Organization and Planning: Board, customer and employee meetings
- Situation Analysis: Monitoring of the market's climate for a business sale
- General Management Support: "Sounding Board" for strategies and financial advice
SEACAP can either directly manage the sale process or arrange for a more appropriate intermediary to control the business sale. It all depends on which is best for the Client. But no matter how the transaction is handled, SEACAP assures the process includes:
- An Appraisal-Based Approach to Establish the Selling Price
- Creation of a Dynamic Offering Package
- Structured and Strategic Search for Potential Acquirers
- Qualification of Interested Buyers
- Negotiation Support
- Acquisition Financing Support
- Transaction Closing Support
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