Preparing to Sell
Selling a business is not straight forward exercise and one that requires a business owner to commit considerable time and effort.
Whilst the primary objective of GPHC Investments is to help successful business owners transition to their next phase of life, I recognise that many are not always in a position to sell. This could be due to a myriad of reasons, but often comes down to them lacking the time required.
The approach I offer to help business owners in these circumstances are:
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Assisting in the preparation required to sell the business; and /or
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Helping to improve the overall performance of the business to maximise its sale value
Again, it is important to note that I am not a business broker and I have no interest in marketing or listing any business for sale. My primary objective is help good profitable business owner transition, so these services are designed to help you get in the best position to do so and to maximise its value.
If through helping you to prepare your business for sale, I discover that the business fits my investment criteria, then this also provides me with a huge level of confidence to buy the business myself as I've already invested considerable time to get to know it,
Here is a general guide of some of the services I provide to help owners get their business ready to sell:
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Establish exit goals and timeframes
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Help with the preparation of required documentation, such as detailed financial statements, applicable legal documents, etc;
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Help prepare a comprehensive information memorandum that outlines key details about your business,
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Determine a relative valuation and appropriate sale structure:
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Develop a marketing plan to sell the Business:
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Assist in the negotiation, closing and transition (if required)
Improving profitability to achieve a higher sale value.
Professional investors have minimum hurdle rates (Return of Investment - ROI) which they require from any capital they invest. These ROI's serve as benchmarks to assess the returns and manage their risks, ultimately determining how quickly they can get their initial investment capital out of the business.
Unfortunately, many businesses that are considering selling often have profit margins well below the required ROI of investors. This can be due to various factors, including a lack of growth strategy or poor cash flow management.
In these circumstances, I can introduce strategies to boost the overall profitability aligning it with the investment requirements of potential buyers. I offer outcome-focused strategies that maximise your business's value and is designed to share in the upside when your business achieves the desired profitability and successfully executes its exit plan.
And yes, you guessed it right! If the profitability goals we set together are met, I may become the end buyer myself. My vested interest lies in helping you achieve success, and I’m willing to align my objectives with yours.
Engagement
Please keep in mind that the above services can be customized to meet the specific needs and requirements of each individual client. The scope I have outlined provides a general overview of the services I offer to business owners who are considering selling their business.
Generally these services are provided as consultancy basis for a monthly fee, and / or with an equity position based on achieving agreed targets. Generally I will also include a first rights option to allow me to offer to purchase the business, should it meet the required criteria.
So, if you're ready to take the next step in your business exit journey, I am here to lend a helping hand. Together, I can create a exit plan, improve profitability, and secure the best possible outcome for you and your business.
