Inform Magazine

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here are many ways to provide potential value for your company. Advisers and accountants can have differing views on how to value a business based on varying criteria.

KBS CORPORATE'S PROVEN STRATEGY

+ We gain a deep understanding of your business to allow us to appreciate and be passionate about your value drivers + We create market-leading documentation and presentation for your company + We build complex financial models and forecasts to articulate the future value of your business + We offer unparalleled buyer reach, leaving no stone unturned in our search for your perfect buyer + We harness technology to maximise buyer appetite and create optimum competitive tension + We have an experienced team with the knowhow and technical skills to drive the transaction

These will often include multiples of turnover, earnings, adjusted profits, assets and balance sheet value. Any initial discussions surrounding the potential value of your company are only a guide to provide a range of where the end transaction value may fall. In reality, the sale value can only be determined by how much a buyer is prepared to pay for it. As advisers, KBS Corporate's role is to ensure that the key attributes of your business are clearly demonstrated to potential acquirers and investors, and that all upside opportunities to them as an interested party are clear from the outset, which in turn helps to maximise overall transaction value. Some of the key internal, external and KBS Corporate ‘value drivers’ that affect the end transaction value paid for your business are highlighted below.

OUR GUIDE ON VALUE The EBITDA (Earnings Before Interest Tax Depreciation & Amortisation) of a company indicates the current operational profitability of the business. A multiple of maintainable EBITDA is a widely used calculation to provide a potential transaction value of the company. It is important to also consider future financial performance projections of your company in conjunction with this to highlight your positive growth trends to accentuate the desire and motivation of any potential acquirers. The price that an acquirer is prepared to pay for your company will be based on several factors, including the ‘type’ of buyer and the ‘motivations’ of that buyer.

COMPANY ATTRIBUTES & OPPORTUNITIES

+ Revenue and profit profile + Sustainability of earnings + Strength and longevity of customer base + Quality of Management and Staff + Systems, software or technological advancements + Balance sheet and surplus asset value + New contract wins, WIP and pipeline + Growth Opportunities and new markets + Brand, IP, patents and trademarks

EXTERNAL FACTORS

+ Macroeconomic backdrop + Geopolitical environment

+ Availability of funding and lending criteria + Liquidity in PLC, PE and investment markets + Tax legislation

+ Foreign exchange rate movements + Legislative changes in the sector + Barriers to entry within your sector

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