 The decision to sell a business may be the best strategic alternative to optimize shareholder value. For individuals, it is usually the most important financial decision of your life, as your business probably represents the largest portion of your net worth; for large corporations it is a way to redeploy capital in another business or restructure the balance sheet; and for private equity groups, it is the best way to achieve the highest exit value. The divestiture process consists of many complex factors, each of which requires specialized skill and expertise to maximize the after-tax proceeds from the transaction. Very few companies have all these skills in-house. Kent Group provides that skill and expertise.
Our clients recognize that engaging an experienced advisor puts them in a much stronger position with prospective buyers by creating a competitive environment and transaction momentum. Through our proactive, disciplined and comprehensive approach, we help ensure a successful transaction that meets your goals and objectives and realizes the maximum after-tax value for the business. We ensure the transaction is handled with discretion to avoid disrupting management, employees, customers and suppliers. We are with you during every step of the process and at every meeting with prospective buyers.
Our comprehensive divestiture process includes the following steps:
- Conduct extensive due diligence and analysis of the company or business unit
We perform an extensive amount of work up-front to gain a deep level of insight into the company's strategic, operational, management and financial strengths and weaknesses. The data we collect is compiled, analyzed and synthesized into a detailed Information Memorandum, which is used to market the investment merits of the company. The document presents our clients clearly, thoroughly, and concisely. Prospective buyers who see Memoranda developed by other investment banking firms have repeatedly told us Kent Group’s Information Memoranda are the best. Buyers know when they read our Memoranda, they will have a very accurate picture of our client and be able to make a sound and informed decision as to whether the company fits their strategic plans.
- Determine defensible value range
We calculate a defensible value range for the company. We can benchmark our clients’ value against hundreds of past transactions. While this information is not initially shared with prospective buyers, it is utilized as a component of an overall transaction plan we develop and execute to ensure the after-tax proceeds from the sale of the company are maximized.
- Implement appropriate marketing plan to create a competitive environment
Working closely with you, we determine a proactive marketing strategy appropriate for your situation. We utilize our extensive industry contacts, database and business relationships to target key agribusiness and food decision makers throughout the world that are active acquirers of businesses. The marketing plan is structured to maintain confidentiality.
- Analyze alternatives
Negotiated deal structure is as important as the price you achieve. We analyze all offers to purchase the business and assist you in determining the option that returns the maximum after-tax proceeds to the shareholders and meets your goals and objectives.
- Assist in negotiating letter of intent, purchase agreement and closing the transaction
After the best alternative is selected, we assist you in negotiating the letter of intent and definitive agreements necessary to close the transaction.
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