Our Fit 4 Sale projects have stimulated many questions from owners. Here are your most commonly asked questions, but feel free to contact us to ask your own questions or ask us to elaborate on the answers below.
Fit4Sale is our Groves & Partners offering that helps business owners in many cases, 10x the value of their businesses over a period of 1-5 years prior to sale. Fit4Sale ensures that the maximum number of quality buyers are attracted to the business thereby creating competitive tension and a deFacto auction when the business goes in the market.
In most studies, business owners typically have a 5 year time horizon to sale. Groves & Partners find that this timeframe suits for an initial consultation, but that Fit4Sale can significantly add value for business even 12 months out from sale. The crucial factor is that there is time to implement improvements and that the financial performance of the business improves as a result.
We produce a customised “Value Discovery” report for each client. This report estimates the current market value of your business, the “value gap” between this value and the desired outcome and a range of strategies for closing that gap. It differs from traditional valuation reports that are also utilised for tax reasons, disputes including partner severances and the like. Value Discovery is solely based on projected market value in a sale process.
Although some of our clients eventually sell their business using the performance improvements heralded by Fit4Sale, many more of our clients are happy to stay on enjoy the benefits of a more profitable and efficient business.
This includes both escalated growth and more time away from work, since the business runs so much more efficiently.
Confidentiality requirements vary between businesses. In certain businesses the owner’s announcement of concluded sale comes as a complete surprise to everyone, in others the management team has been part of the entire sale process. In our consultation process, Groves & Partners engineer with you appropriate strategies to optimise sale value that depend on the inclusion of key team members. This is based on confidentiality.
No. Our team roll their sleeves up, look at the ways that your business is over / under performing and brainstorm, create and help implement strategies to drastically improve value.
Every industry is different, every business is different and every program is based on the needs of the owner and their available time. We typically charge a fixed program cost enabling for certainty throughout the process. Either this program cost is minimal compared to the increased value of your business post-program, or we will recommend right at the outset that Fit4Sale isn’t for you.
The program is coordinated and managed by a senior member of the Groves & Partners team. Objectives and strategies are agreed and the improvements in value performance are quantified by financial forecasting tools driven by Groves & Partners. Depending on the areas of improvement required, we also tightly brief recognised external specialists in the fields of branding, intellectual property, marketing, Human Resources, systems & IT where applicable.
Groves & Partners Fit4Sale experts must all be transaction specialists given the intimacy that they must possess for understanding the market.
While the actual transaction is not specifically part of the Fit4Sale process, our understanding of your business is highly beneficial should you grant us the mandate to take your business to market.