Following the launch of Knight Transaction Services, part of the Knight Corporate Finance Group of companies, Hayley Brightmore (Director), Jenny Serridge and Erin Berry (Associate Directors) - with combined experience of over 15 years of providing due diligence support to acquirers and investors across the UK, provides their viewpoint on the importance of preparation for a potential transaction: Selling your business or attracting investment can be very time consuming and one of the most stressful events a business owner can experience.
Preparation is key. Engaging with professionals at the right stage of a transaction can help to make this process much more efficient and painless and will reduce the strain on your internal resources, allowing you to focus on the operational activities which add value to your business.
With so many options available, it can seem overwhelming and difficult to choose the services you need, the correct time to seek assistance and which advisor to use.
This article focuses on Vendor Assistance services, however for further information on our other related services please visit our Knight Transaction Services Website.
It is important to pick an advisor who understands your business and is going to provide the services you need rather than rigidly sticking to a prescribed, standardised plan. Given that you will be working closely together and transparency is key, it’s also vital that you trust, respect and work well with your advisors!
The ethos of Knight Transaction Services is to offer clients a flexible, bespoke service that delivers on the areas that are important. For owner managers in particular, due diligence can be a daunting and complex process, there is no one size fits all approach. We deliver tailored support and full transparency to guide businesses as they prepare for a transaction.
Vendor Assistance services are wide ranging from undertaking a full dry run of the diligence process to looking at a specific area of the business and everything in between. The services provided are for the sole benefit of the seller and are designed to achieve the following:
- Validate the valuation of your business;
- Identify the strengths and opportunities of your business as areas of focus;
- Proactively address any potential challenges which may arise in a formal diligence process and suggest potential rectifications or mitigations where relevant;
- Corroborate the facts, figures and information to be provided in the information memorandum before it is circulated to potential purchasers;
- Highlight (and seek to mitigate) any weaknesses or resource constraints in the finance function; and
- Identify any potential other risks to a successful transaction.
Vendor Assistance services are typically most beneficial when undertaken before marketing the business. This is not to say that value cannot be added after this point but for maximum impact – forearmed is forewarned!
In short, to ensure you get the maximum valuation for your business! Vendor Assistance services can help to iron out any potential issues that may erode value or cause delays to the sale process, giving you more control over the transaction. Engaging with a vendor Assistance provider can give you the confidence that your business is ready for a formal due diligence process and can provide support and guidance throughout if required.
Although the fees incurred in a transaction process can add up to a significant sum, our advice is that for such a significant event, the experience a Vendor Assistance advisor brings will pay for itself many times over during the course of the transaction.
If in doubt, reach out!