Until a consideration template is designed there is no value agreed and so no deal.
Because of the complexity this is left by the sales brokers to the buyers and sellers corporate finance advisors to undertake the financial analysis as the terminology is all new to the Seller.
At Dexterity Partners we believe the best approach is to involve our client at the very start of the process. We work in partnership with our client prior to any marketing to a buyer to ensure the optimisation of underlying EBITDA. We do this with our practical hands-on “Fit to Sell” and “Fit for the Future” improvement process based on the Doctorate research of Dexterity Partners’ co-founder Dr Simon Brayshaw.
This research was completed at Warwick Business School based on actual analysis Private Owner Managed Companies. By starting early it ensures the client understands the value drivers in the sales process. This is very important when deciding on earn out, deferred consideration and payment security.