Many people understand the role of Strategic Corporate Finance (SCF) specialising in working closely with clients to provide crucial advice and support for business owners taking the next step – be that an acquisition, an increase in investment, or an exit.
But while that is a major focus for our SCF team, being called in to provide support once a client has chosen a particular course of action is far from their only activity. In fact, an equally important service is to carry out strategic business planning and business plan reviews, to help clients evaluate the various options they face. And over the last couple of weeks, two projects have highlighted the benefits of this element of the SCF team’s work.
The first client was a construction fit-out business that required a third-party review of the feasibility of a sale. The second case involved a client who manufactures high-end windows and doors, and who needed advice on the relative merits of a trade sale, a possible MBO, or seeking further investment.
In both cases, the SCF team were asked to prepare an advisory letter for the board of each company. In this letter the team acted as an independent third party, providing a thorough business review and delivering detailed conclusions and recommendations for the directors.
The reviews focused on the key value drivers impacting the business, as well as industry-specific factors that enabled the team to benchmark the company’s performance within the market. In both cases, our specialists assessed the overall business strategy and the operational strengths and weaknesses, as well as providing a critical analysis of financial performance.
Our SCF team were able to draw on their own significant expertise and experience in the field of business strategy and development, as well as the client’s own knowledge of the business and the market in which it operates. As a result, the client was able to weigh up all the available options before making a decision, safe in the knowledge that all possible avenues and implications and been explored.
It’s an area of work which is often overlooked, but which can be invaluable for business owners facing challenging choices. The SCF team regularly conduct thorough pre-sale planning exercises, working with clients where the options are not always so clearly defined. By exploring the alternatives and highlighting the implications of each potential decision, the SCF team can help clients to make the right decision for their business.
Strategic business planning, for the future.
In our experience, the time invested in this strategic business planning is well worth it at the point of exit. And if the eventual decision taken is to proceed with a sale, the process of identifying potential buyers and producing relevant marketing materials is also streamlined significantly as a result.
If you are currently considering the best options for your business, but are unsure about strategic business planning and the best way to proceed further, our Strategic Corporate Finance team are there to help. For more information, contact Ross Bennett using the form below.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.