How do professional businesses acquire a target? How much should you offer for the target business? You want a great deal but also want to protect your business against risks. You may also need to secure funding to enable the deal to happen. All our virtual finance directors have experience of buying and selling businesses and financial modelling so are ideally placed to provide you cost effective advice and support; many have raised Private Equity funds too.
Growth businesses could find acquisitions a valuable route to create value – see our newsletter – Time to Seize the moment? Buying a business works best when you don’t overpay and you only take risks you understand.
vfdnet’s experienced FDs provides part time FD Services as follows:
- Acquisition search – help finding your ideal target business
- Commercial due diligence – identify the key characteristics which will drive profit in your hands
- Funding – detailed financial and business plans providing real credibility
- Funding Presentations to potential funders – Bank, VCs or other equity investment
- Due Diligence – Identify risks, arranging specialist due diligence
- Project management to help avoid ‘deal distraction’ from ‘heads of terms’ to final contract
- Post acquisition integration of new subsidiary
The benefits are considerable:
- Save cost – Idendify poor deals early
- Determine profit drivers
- Secure funding
- Avoid deal distraction
- Use due diligence for best commercial negotiation
- Plan for effective integration
The client, a business-to-business service company, had established a geographical acquisition policy and was prepared to issue equity to raise the necessary funds for the acquisitions. We began by reviewing the business, advising on how to turn around the existing business, drawing up a detailed financial business plan and presenting the strategy and financial plan to potential venture capital backers. Presentations were given to ten venture capital funds that were subsequently short listed to two prior to final selection. Following detailed investor due diligence, and subsequent successful negotiation, the company completed the three acquisitions and the £6m fund-raising all on the allotted day.
“Using a Virtual Finance Director on a project basis meant the operational management was able to stay focussed on current performance, while the professional presentation of the financials enabled a bank…” Read More >>
Graham O – Owner Manager