Vendor assist is essentially a dry-run of a sale, built around an early form of due diligence. With a more detailed data pack becoming a standard part of the process, why not simply bring it even further forward, but directly for the benefit of the vendors to help them prepare? This is the concept of a vendor assist process and report. The result is a clear information report for vendors on what to improve pre-sale and covers a variety of aspects, including the business model, reporting, threats, opportunities and taxation.
This form of seller due diligence is highly effective at creating more valuable companies. Many owners see company value simply as a biproduct of earnings, however, the quality of earnings and your establishment has as much a bearing on value. A volatile cash flow, over-dependence on key staff, weak information and poor governance all increase risk and limit forecast yield, so that even a motivated, strategic buyer will downgrade value. However, there are show-stoppers and weak areas in most companies that can be tidied up with a little investment.
Such as, what characteristics and concepts beyond the corporate financial science of return on capital can we target to create more valuable companies? Many leaders are not sufficiently aware of the threats and opportunities that may be present, both internally in the organisation, and the external environment. This is often because the company is successful; therefore, an assumption is made that the business has an advantage and value, but this can lead to complacency.
A vendor assist sale preparation process will help you:. We know the right areas to prepare and the right strategy to position the business. To build and realise the value in a business is hard and therefore preparation is key.
Avondale are EME business advisors. Through our management consultancy, we support growth and scaling up. We recognise ambitious owners who require ambitious, specialist advisors. How Can Vendor Assist Help? Interested in learning more about Vendor Assist and what It can do for you and your business?
