EBITDA+ SIX STEPS TO SUCCESS.
The process to engineer your own $30million exit.
Selling, merging and acquiring businesses isn’t easy. For every business that achieves a successful outcome, there are many more start that same journey but can’t reach a satisfactory conclusion. And while there isn’t a one size fits all approach, at Morgan Shaw Advisory we’ve used our experience to develop, EBITDA+ SIX STEPS TO SUCCESS – a methodology to maximise the sale of your business.
The definition of ‘EBITDA’ in financial terminology is ‘Earnings before interest, tax, depreciation and amortisation’. It is viewed by many as a reliable view of a company’s financial performance.
At MSA we’ve adapted this well-establish financial abbreviation to describe our six-stage process. EBITDA+ SIX STEPS TO SUCCESS, in this context, stands for:
Evaluate the Gap – Before you start the journey, you need to understand your goals, financial objectives and where you are going. Otherwise, how will you know when you’ve arrived or what success even looks like?
Bridge the Gap – Once we understand what you are trying to achieve and what the gaps are, we can design and implement strategies to build value and mitigate things that might impede the process and your ultimate success.
Information – Locate, collate and prepare all the information required to buy or sell a business in a structured manner, stored in an online portal and kept ready to go.
The Deal – Know your market and potential buyers. To achieve or beat your desired price, we’ll need to demonstrate to buyers value beyond just a solid business.
Due diligence – Making the due diligence process as quick and easy as possible. This is where deals are so often lost.
After the event – The post-sale elements and commitments that will be agreed as part of the deal can be either an opportunity to enhance the sale value and smoothness. Or, can become onerous for both parties if not well thought through.
This process has evolved over years of experience and there’s too much information for one simple post. So, over the coming weeks, I’ll be releasing a series of posts to go through the MSA EBITDA+ SIX STEPS TO SUCCESS methodology in more detail. This will also be collated into an eBook, for anyone that wants all the information in one place.