Transaction Readiness
For any Finance Director, steering a business through a sale or exit is a defining career milestone. The journey from launch to acquisition is complex, requiring careful planning, a clear vision, and the right expertise to navigate the twists and turns along the way.
Our latest Finance Leaders event in Lancashire – Transaction Readiness – will focus on preparing for a successful transaction, identifying key exit trigger points, and understanding when and how to start the process, while also highlighting common pitfalls to avoid.
Ahead of the event, Directors Dan Calland and Jessica Coleman share some critical factors every FD should consider before embarking on a transaction:
Business Reputation & Investor Confidence
Value is built on reputation and integrity. Investors want transparency – acknowledging potential risks, demonstrates credibility. A business with a strong FD is a plus, but a competent, pragmatic FD who can keep the entrepreneur in check is invaluable.
Understanding Business Value
FDs must have a firm grasp of what drives business value and how investors perceive it. Knowing the key levers that influence valuation is crucial when navigating an exit.
Deal Fatigue & Increased Lender Scrutiny
Deals are taking on average, 40% longer to complete, and only 1 in 4 successfully close. Market uncertainty has heightened scrutiny, and lenders are more rigorous with financial due diligence than they were five years ago. If confidence in the business wavers, confidence in the FD follows suit.
The Right Advisor Relationships
A single red flag can derail a deal. Having the right advisors – those you trust and who understand your business, is crucial. Build these relationships early and be prepared for in-depth questioning throughout the process.
Additional Support Can Be Game-Changing
Bringing in external resources to manage aspects of the transaction can be invaluable. Often, in the rush to complete a deal, operational performance takes a hit. The right advisor can help shift certain transaction costs onto the buyer rather than the seller, easing the burden on you and your team.
To hear more about becoming transaction ready or our Finance Leaders programme or to attend the event, contact Dan or Jess.