Here are the key takeouts:
- Understanding of valuation drivers ensured buyer didn’t overpay, but also not haggle unnecessarily
- Scenario analysis allowed buyer to “wargame” alternate scenarios and act with confidence
- All cash deal allowed buyer to move quickly and execute strategy
- Buy-in and smooth hand-over with exiting owner was essential
- Limited changes made initially to build trust and “understand” the business
- Continuity of staff and brand meant existing customers didn’t perceive a “change in ownership”
- Buyer leveraged strengths and was strategic about the acquisition
- Optimization and alignment of accounting, reporting, CRM systems was important
Graham is a chartered accountant and the founder of bizval and is passionate about empowering entrepreneurs on their value creation and growth journey
Why listen to Graham:
- bizval has valued over 4,500 private companies, globally, in the past 2 years
- Valuation experience from startups through to established businesses
- Passionate about demystifying and simplifying valuation