Why should I hire a Financial Advisor?
The buyout or sale of a company is a complex process that requires the completion of tasks on different fronts while identifying and attending to several interested parties. Having a specialized team who is responsible for the entire process allows the client to optimize conditions more efficiently without having to devote owner or management time and attention in order to handle exceptional situations. The owners and managers of countless companies have found that hiring an experienced financial advisor in these processes brings important benefits:
Confidentiality. The advisor can safeguard the buying of selling company’s confidentiality during the initial contacts with potential buyers or sellers by not divulging its identity. The advisor filters and disqualifies buyers or sellers who do not fit the desired profile.
Handling of the Process. A specialist focuses on identifying the main characteristics of the company to be bought or sold. Special care is taken to ensure that these align with the promotion or search of target companies. In a sale these are reflected in the documents prepared by the advisor to promote the company to those interested, which are prepared so as to present a complete image of all the characteristics that make such a company desirable.
In the case of a buyout the focus is on the acquisition criteria that will be used to evaluate target companies. In both cases a specialist should be able to develop a valuation of a company based on industry-recognized methodologies and design the most convenient structure for the transaction.
Facilitating role. Maintaining the dynamic between buyers and sellers in merger and acquisition processes is essential to achieve satisfactory results. The financial advisor organizes a work schedule that keeps all parties actively involved in the process, thus guaranteeing its development. It is also essential to monitor legal, financial and operational information requests and reply, and ensure their relevance and usefulness. The financial advisor is positioned to perform this demanding work and maintains the rhythm of the entire process. By contrast a business owner could only afford to devote time sporadically an individually to this process, which would mean a loss of control and a weakened negotiation position. The financial advisor saves valuable time for the owner of a company by taking charge of all tasks pertaining to the process.
Negotiation Assistance. The financial advisor can establish a better negotiating position and avoid the client’s exposure to the stresses of the process. The sale of a company is a complex task. If the owner of a company has never had this experience before, this can result in a disadvantageous position because in all likelihood the majority of buyers have completed many transactions in the past. Those sellers who are not properly prepared and advised can risk making unnecessary concessions. Many company owners work their whole lives creating value for their business but they can spend the final months destroying it because expensive mistakes are often made during the sale and negotiation process.
Hiring an experienced financial advisor such as SFA Consultores helps the seller get the best offer for the business. Similarly, it helps the buyer not pay too much during an acquisition. The financial advisor’s main occupation is buying and selling companies, while company owners only do that once in their lifetime.
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Leer másMergers and Acquisitions
Mergers and acquisitions are a widespread practice worldwide. The benefits and synergies that can be obtained from mergers and acquisitions come from efficient management, economies of scale, an improved and more profitable use of assets, the cultivation of marketing power and the use of complementary resources. For SFA it is crucial to understand the dynamics of mergers and acquisitions. For example: When is the right moment for the sale of a company? Is the company ready to be sold? How much is it worth and how should that...
Leer másFinancing Advice
SFA provides advice in the optimization of its clients’ capital structure. We also offer support deciding whether to place debt or capital in its different forms. Furthermore, we also the financial aspects of the company’s strategic decisions. These could take the form of establishing an additional plant, making inroads into new markets or the buy/sale of a brand or business division. It is indispensible for a successful private equity placement to present a detailed investment plan that specifies the destination and performance of the...
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A business plan is a formal declaration of a company’s goals. It explains the reasons why these goals are attainable and the strategy to pursue them. The business plan is a decision-making tool that must include all the information required to achieve said goals. The main value added by a business plan is the creation of a detailed written description that evaluates all aspects of the financial viability of a business. This document grants credibility to a good idea by crystallizing it in a way that is understandable and attractive to any...
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How much is my company worth? Is a minority share of a company the same as a controlling share? How much should a retiring partner be paid for his/her shares? How long is a valuation valid for? A valuation implies a determination of the value of a business or a specific asset at a particular time. SFA conducts corporate valuations in several areas –whether valuing a business as a whole, its shares or its intangible assets (such as patents or trademarks). A professional and competent valuation must reach an accurate range of value as...
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SFA Consultores provides the following services to business owners looking to sell their business or part of it. Advise the buyer in defining the acquisition criteria. Develop a list of target companies through our database and other sources. Approach the stockholders of the target company on behalf of the buyer in order to assess their willingness to sell –all while safeguarding the confidentiality of the process. Develop information to help the buyer analyze target companies. Assist the buyer in search for financing if needed. Advise the...
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SFA Consultores also provides services of financial advice for buyers who are looking to make an acquisition. In this case our services include: Advise the buyer in defining the acquisition criteria. Develop a list of target companies through our database and other sources. Confidentially approach the target company’s stockholders on behalf of the buyer in order to assess their willingness to sell. Develop information to help the buyer analyze target companies. Assist the buyer in search for financing if needed. Advise the buyer in the...
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