More Related Content Similar to What buyers say; What you need to know when selling. (20) What buyers say; What you need to know when selling.1. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
What buyers say
2015 global research report for consulting firm
owners wishing to sell during 2016/17.
3. Confidential© Equiteq 2015 equiteq.com 3
6 key questions formed our survey; timing;
size; deal; beauty; intellectual property; and
integration.
4. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
Are we in an up or down market cycle and is
now a good time to sell?
Timing
6. Confidential© Equiteq 2015 equiteq.com 6
Buyers doubling their acquisition
expectations from an average of 6% growth
to 15% growth rate over the next
2 – 3 years.
9. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
Are you well positioned in terms of scale and
financial profile?
Size
13. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
What are the determinants for the realization
of equity over an earn-out period?
Deal
14. Confidential© Equiteq 2015 equiteq.com 14
Earn-outs continue to be the reality for the
majority of transactions.
Expect about 45% upfront and a 2-3 year
earn-out.
16. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
What does good look like and how attractive
are you likely to be?
Beauty
17. Confidential© Equiteq 2015 equiteq.com 17
Quantitatively, buyers care about profit
margins and growth; Qualitatively,
client profiles and quality of your IP.
Highlight a mix when initially presenting to a
prospective buyer.
19. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
How important is intellectual property in
getting premium valuations?
Intellectual property
20. Confidential© Equiteq 2015 equiteq.com 20
68% of all buyers found IP extremely or
very important as a factor when
assessing potential acquisitions.
22. Confidential© Equiteq 2015 equiteq.com 22
45% of buyers struggle to understand how
IP described contributes to success of those
firms.
IP value must be clearly articulated for
buyers to see how they can leverage it in
their own firm.
23. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
Post deal, what are the typical buyer priorities
for your people and your clients?
Integration
27. Confidential© Equiteq 2015 equiteq.com
Growing equity, realizing value
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