This section should provide a concise yet insightful picture of the seller's "why" and "how well" regarding the M&A process, guiding internal decision-making and potentially informing buyer engagement strategies. Consider qualitative and quantitative metrics to evaluate preparedness (e.g., time spent preparing documents, engagement with advisors).
Having an experienced Sellside Investment Banker can help you navigate the entire process including Term Sheet Finalisation, Due Diligence, Negotiations & Finalisation.
Use the CAGR Formula to calculate this - "(Ending Value/Beginning Value) ^ (1/No. Of Periods) – 1"
Enter the actual Margin percentages, not the growth rates.
The Current Ratio is a measure of a company's short-term liquidity, indicating its ability to cover short-term liabilities with short-term asset. Continuous monitoring and proactive management are essential to maintain healthy liquidity and avoid potential financial distress.
A company's total debt is the sum of its short-term debt, long-term debt, and other fixed payment obligations.
TNW = (Equity+General Reserves)
Remember, the goal is not just to claim a specific rank but to demonstrate your competitive edge and value proposition to potential buyers.
What specific actions led to the "Customer base" increase/decrease? (e.g., new marketing campaigns, product launches, improved customer service, market competition, product issues, poor customer service)
Research your target market. Understand the price range your customers are willing to pay, and analyze the pricing strategies of your competitors. This helps in positioning your pricing effectively in the market. Analyze your cost structure thoroughly.
Analyze customer contracts and vendor agreements to identify potential risks and opportunities. Benchmark the company's customer and vendor management practices against industry standards.
Build strong relationships with suppliers and implement a robust supply chain management system. Use data analytics to forecast demand accurately, optimize inventory levels, and reduce logistics costs.
Regularly invest in and update your technology infrastructure to ensure it's robust and scalable. This includes upgrading systems, hardware, and networks to support current and future business needs.
Establish robust internal legal review processes. Regularly train your employees on legal compliance, including labor laws, anti-corruption, and corporate governance.
