Farrell Advisory provides fully vetted and compelling financial and operational data to support the sale of an improved business or for raising new capital. This approach leads to higher price and certainty (i.e., time to completion and terms) of M&A success with increased competition from knowledgeable bidders. In addition, the better the seller can improve on the buyers financing opportunities and the company’s story, the smoother the sale should be.
Farrell Advisory provides a disciplined and fast-paced project management approach to assessing and preparing a company for sale and keeping a relentless focus on results and the key value drivers via a dynamic valuation model behind a potential transaction while still allowing management to run their business. A successful sale depends on maintaining Credibility and Control.
Get the house in order in terms of organization structure, growth strategy, new business development, operational performance, executive and staff development, solution/product development, contractual documenation, protecting IP, and back office (e.g., HR, IT, reporting, accounting and procedures manual, tax and compliance issues, audits). Perform pre-sale checkup followed by corrective actions. Keep the business running.
Identify owner objectives. Develop divestiture, contingency and communication plans. Address strategic and tactical priorities, resources and timing. Assemble, motivate and brief selective members of the management team. Assemble a team of trusted advisors and deal specialists. Appoint senior project manager. Ensure internal managers and external advisors communicate the same message.
Self-review enables seller to maintain credibility and control and better anticipate buyers needs. Perform quality of earnings and working capital analysis. Highlight key performance indicators and management tools and demonstrate their relevance. Collate scrutinized data in a well-thought out and structured centralized database; with some data being released in phases. Unpleasant surprises derails transactions and deflates value.
Develop sound financial projections. Articulate market assessment, opportunities and value drivers to support future growth and profitability.
Understand non-financial aspects (e.g., the business, management team and talent, compensation package, severances, long-term contract, change of ownership clauses, synergies, product/service offering, market and Platform vs. Add-on acquisition) from a buyer’s perspective. Build strong concise knowledgeable messages around quality of earnings and buyer’s skepticism and findings.
Evaluate valuation, structuring alternatives and related trade-offs. Understand potential deal breakers and price adjustment issues. Implement staff retention and long-term incentive plans. Protect business value via performance improvement initiatives, succession planning, insurances coverage and company and personal tax and financial planning. Identify likely buyers.
Sale of UK pension software business
Sale of Lynx group plc, listed on UK stock market, to Skandia ($500M of revenue)
Sale of Lynx Automotive to US listed business
Sale of Lynx Ascent technology
Reverse take-over and raising of $3M equity on UK AIM for a technical IT training business
Financial Advisor for sale of minority shareholding
Assessment and implementation of improvements and structuring a government contractor for sale
Assessment, accounting and structuring of transaction for MBO
Financial Advisor for $50M fund raising
Carve-out & quality of earnings of Branded Apparel divisions ($4.5B revenue)
Advisor to Board for sale of electronic billing, payment, and communication services company
Carve out of Volvo Distributorship representing 50% of business
Carve-out & pro-forma cost base & sell-side due diligence ($1.3B revenue, Chapter 11)
Carve-out of Olefins, derivatives and refining group ($25B revenue)
Valuation and assessment of company and structuring for sale purposes
Disclaimer Note: Certain transactions listed above were effective by principals of Farrell Advisory prior to the date they joined the firm