Ranked #1 sell-side M&A advisor in sub-Saharan Africa (2014 Zephyr/Bureau van Dijk)

The XIGO 5 Step Process

There are two crucial components to selling a business and you need both of them: a competitive market of interested acquirers and a shared vision of a lucrative future. If you’re intent on selling your business for the most you can get out of it, you have to proactively and intensely create a dynamic, competitive market of interested acquirers. Without a competing market, you’ll have very little leverage to convince a buyer to pay you anything more than the industry standard multiple of past profits.

As business owners, we know that there’s more value in our business we’re selling than what we’ve been able to accomplish in the past. At BCMS Corporate, we’ve spent 20 years perfecting a process that allows us to address this and to switch conversations away from buyer-focused return-on-investment criteria to the future opportunity and value that you’re able to offer when selling your business.

Learn more about our 5-step process to selling a business using the tabs below or call 086 111 5456 and speak to us today.

Every business – like every business owner – has a unique past and a unique future. We will spend time understanding your personal objectives for selling the business, your business’ unique strengths and opportunities and the acquisition potential.

Our Research Team, when looking for strategic acquirers, will use a large portion of this information. We must be meticulous during this stage so that we consider all opportunities and do not prematurely eliminate potential synergies or value opportunities.

Our Research Team undertakes a customized research project for each client. Potential buyers may be found across the world, from private equity shops to public firms here and overseas.

We create a tailored list of qualified prospects from the 150+ million global companies contained in our database. Each prospect is scrutinized using our proprietary research practices, which look at industry and M&A trends, strategic and synergistic motives, financial capability, and acquisition history among other criteria.

The aim is to cast a large, but targeted, net around the most likely potential acquirers for your business. In order to sell a business successfully, the research at the beginning of the process must be as thorough as it is comprehensive. Research is the cornerstone for everything we do.

When you have approved the initial list of potential acquirers, our Prospect Generation Team will contact each company to assess their level of interest. At this crucial stage, your confidentiality is maintained and any detail that could identify your company is withheld. Each potential acquirer must return a signed non-disclosure agreement (NDA) prior to further details being released.
We’ll arrange face-to-face meetings with the most suitable, qualified prospects. It is too early to discuss price; instead, these exploratory meetings are used to evaluate the operational “fit” between the two parties.

We discuss value of what your business will look like once the acquirer applies their resources, time, energy and money to the business. Acquirers don’t buy a company for its history, they buy a company for the future opportunity it presents – and we want to understand what value this holds for them. The goal of this stage is to come away with an understanding of what the future of your business is worth to an acquirer.

Before these meetings take place, you will attend a “dry run” negotiation meeting where the Deal Leader assigned to your project will thoroughly prepare you for what to expect as we enter the negotiation phase together.

Following a series of in-depth meetings to gain a clear understanding of the acquirer’s motives, your Deal Leader will invite competitive bids. We introduce the notion of competition and the motives behind some competing bidders; maybe a foreign competitor wants to acquire your company to gain a foothold in your area, maybe there are cross-selling opportunities, etc. Each prospect is selected for their plans for the company in the future.

Your Deal Leader will now introduce the Synergy business plan. This unique and tailored document shows the future potential of your business when combined with the resources of a potential acquirer. This has a major influence on price.

It is the Deal Leader’s specific responsibility to help you understand each offer fully and provide any necessary assistance with any of the terms which form part of the offer. Your Deal Leader will support you through the due diligence and legal processes.

Maintaining speed and momentum are critical from the point of offer acceptance through to deal completion. The longer a deal takes to complete the disproportionately more likely it is to never close. Our deal teams ensure that all lawyers, accountants and deal professionals keep sight of the larger picture (selling the business) and move towards a speedy and successful completion.

30 May 2017 | Time: 09h30 to 13h00 | Registration: 09h00 | Johannesburg: The Fairway Hotel - Randburg

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31 May 2017 | Time: 09h30 to 13h00 | Registration: 09h00 | Durban: The Oyster Box Hotel - Umhlanga

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1 June 2017 | Time: 09h30 to 13h00 | Registration: 09h00 | The Crystal Towers Hotel and Spa - Century City

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