1 / 10

The Market Today and Valuation

The Market Today and Valuation. Avondale - Master brokerage in commercial business sales, acquisitions and strategy. 40 transactions pa. Organic growth slow > Acquisitions high (average 4 bids). Strategic deals + Economies 1 + Synergy 1 + Value influence 1 6.

yitro
Télécharger la présentation

The Market Today and Valuation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Market Today and Valuation Avondale - Master brokerage in commercial business sales, acquisitions and strategy. 40 transactions pa. Organic growth slow > Acquisitions high (average 4 bids) Strategic deals + Economies 1 + Synergy 1 + Value influence 1 6 BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

  2. ValuationsVarious methods Discounted cash-flow • IP/capital projects/Start ups Price Earnings Ratio • PBIT/EBITDA Include net assets • Debt free/cash free/ What assets? • Revalue P/E What profits? • Sustainable/art Earnings BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

  3. P/E Multiples PBIT/EBITDA £000’s Forecasts . Sector . Sustainability . IP . Contracts . Risk. Prospects . Competition . Team . Brand . Track-record. Strategic deal .

  4. Adjusted Profits- example Forecast Financial value x 4 est. 4 x £316k = £1.26 ml Debt free/cash free • Actual Marketed on Offers 3 bids Offer achieved £1.8 ml (with earn out) --------------------------------- Dutch co seeking UK base

  5. Hire company case study (deal structures) 2. Deferred Payment 1. On Completion 3. Performance payment 4. Total ________ • Fixed guaranteed with a 2nd charge in case of default £ 225,000 • Monthly payments diminishing risk • Strong buyer covenant • Cash is king £ 1,350,000 • On current performance (not growth) £ 225,000 • On Gross profit (easy to define) • Business to be run materially same as present • Director retained for duration • Detailed heads of terms £ 1,800,000 • Retain shares, earn out on growth? • Access to records • Reverse non compete Structure is a multiple Influencer

  6. Care agency (deal structures) 2. Performance payment 1. On Completion 3. Total ________ • Cash is king • Included £300k Net asset value £ 2,200,000 • Average of next 2 yrs Earnings before interest, depreciation • Protections and definitions included in heads for EBITDA • Vendors retained 20% until final payment • Vendors to stay and ensure handover • On Gross profit (easy to define) • Business to be run materially same as present • 50% held on Escrow reduce risk • Director retained for duration £ 400,000 • Detailed heads of terms £ 2,600,000 • Access to records • Reverse non compete Structure is a multiple Influencer

  7. Types of deal (summary) Cash deal Earn Out Performance Related Elevator Deal Mix of All BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

  8. Maximising Value & Process Positioning the business correctly to the right strategic buyers in an auction can increase value by 200% or more 2012 (average 4 bids)

  9. THE SALE PROCESS DELIVERY COMPLETE ACCEPT COMPETITIVE OFFERS Conclude SHORTLISTEDBUYERS Exclusivity Best value RESEARCH & MARKING Aspiration Value INFO MEMORANDUM Determined Approaches International? BESPOKE6 - 12 months BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

  10. Negotiation & Project management Think 4 Moves Ahead Non Adversarial Alternatives Project Management Hardball with a smile The competition is... Get the right team Ensure information prepared Ruthless timetable. Winning isn't everything--but wanting to win is.” ― Vince Lombardi Listen, Anticipate, plan

More Related