Consulting Services
Increase Your
Business Value
WE’RE HERE FOR YOUR SELLING PROCESS
Value Enhancement
Some owners are not ready to sell in the near term, but are thinking two or more years out. They need a plan to achieve their objective. We will build that plan and help you monitor it along the way. We will show you what the value of your business is today, and listen to what you would like the value to be to sell and the timeline. Then put a targeted pro forma together with margins and growth rates to achieve the desired valuation. Additionally, we will rate and update our proprietary 10-point multiple range score. All this will be monitored and updated as often as you desire (quarterly, semi-annually or annually).
Below is a summary of our consulting services:
Initial review of 3-year historical profit and loss statements
Adjustments to determine EBITDA, add-backs and adjusted EBITDA
Revenue segment breakdown
Balance sheet analysis
Initial analysis of 10-point multiple range score
Initial valuation range
Target valuation and timeline
Target pro forma financials with margins and growth rates
On-going quarterly adjustments with updated financials
Updated 10-point multiple range score
Updated valuation range with rolling twelve months
To ensure that your business reaches its full potential and achieves the desired outcomes, we invite you to engage with us in this comprehensive journey. Our suite of consulting services, tailored to enhance your business’s value and align with your transition goals, is just the beginning. By leveraging our expertise in financial analysis and strategic planning, we can collaboratively navigate the complexities of business valuation and growth.
Brentwood Growth Process
1
Initial Call
Brentwood explains the process, you give a high level overview of the business, we learn about the business and what you are considering, we provide a timeline.
Financial Exchange for Business Valuation
NDA signed, limited financial information exchanges, Brentwood completes an initial valuation of what the business is worth.
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Valuation Presented
Brentwood presents valuation findings, gives valuation range, discusses buyer groups, transaction structure and transition timeline acceptable.
Listing Agreement Signed
If we all agree and the valuation range is acceptable, timing is right, and we are a mutual good fit then a listing agreement is signed.
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Marketing Materials and Marketing Plan
Brentwood prepares a one-page summary (Teaser), a 20–25-page Confidential Information Memorandum (CIM), a marketing strategy as to what buyer(s) groups and specific buyers to present the business to.
Initial outreach to buyers
Based upon buyer(s) groups and buyers, Brentwood reaches out and presents teaser and CIM to interested buyers. Initial calls and questions answered about the business.
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Management calls with vetted buyers
Brentwood arranges management calls with subset of those potential buyers that we believe are potential good fits, obtain Indications of Interest (IOI) and Letters of Intent (LOI).
LOI selected and executed
Brentwood will guide seller in selecting the LOI that is your best fit and it will be executed. This agreement provides a specific period of exclusivity for the buyer and is non-binding.
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Due Diligence – Financial
Brentwood oversees financial due diligence also known as Quality of Earnings. This is a deep-dive financial analysis that a buyer conducts usually by hiring a third-party to access the reliability and sustainability of the selling company’s reported earnings.
Due Diligence – Legal, Operational and Commercial
Brentwood oversees additional due diligence areas:
- Legal (contracts, agreements, litigation history, intellectual property rights, regulatory compliance, and other legal aspects)
- Operational (processes, systems, management structure, key personnel, suppliers, customers, and competitive position)
- Commercial (market dynamics, industry trends, customer base, competitive landscape, and growth potential of a business)
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Legal Contract Review
Brentwood oversees and coordinates all legal contracts to be executed at closing. Seller’s outside counsel to be engaged as well.
- Acquisition Agreement – This is the primary contract that formalizes the terms and conditions of the acquisition.
- Disclosure Schedules – These are attachments to the acquisition agreement that list exceptions to the representations and warranties made by the seller.
- Employment Agreements – Key employees to define their roles, responsibilities, compensation, benefits, and post-employment obligations such as non-competition and non-solicitation clauses.
Day 240 – 8 Months From Listing Agreement Signed
Brentwood will coordinate execution of all final agreements as well as transfer of consideration, ownership and assets.
Discover the Journey of Business Growth
Digital Marketing Program To Increase Business Value
Critical Factors
That Impact Company Market Value
Cash Flow and Profitability
A healthy business has adjusted net profit margins of 15%+ before ‘owner add-backs’. This is very critical in the overall valuation of the business.
Client Diversification
Depending on a single customer for more than 20% of your revenue leads to higher risk in a company’s stability.
Revenue Growth
Increasing revenue growth year over year is vital. More than 20% revenue growth is outstanding, 10% is higher than average, 5 – 10% is average, 3-5% is acceptable, and less than 3% is concerning.
Recurring Revenue
All buyers put a valuation premium on reoccurring revenue because of the regular, predictable income stream it provides. A greater amount of service and maintenance work increases value.
Lead Generation Program
Having a robust multi-channel program that consist of wrapped trucks (branding), local advertising, email, and SEO to “keep the phone ringing” is critical.
Size of team and staff
With the labor and employment challenges everyone is facing today the size, quality and loyalty of the entire staff is of vital importance. In addition, the ability to recruit, train and retain is critical.
Marketing Reputation Management
Buyers want the number of reviews and “star” ratings to be strong. This supports digital presence and lead generation. Buyers want the ratings and reviews to be in place and not have to build or undo negative reviews.
Management Team Depth and Transferable Process
The business must be transferable and not completely dependent on the owner to operate successfully. This is true for sales, operations, client support, and strategy. There must be a scalable and repeatable process the new owner can assume.
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