| PROFIT
IMPROVEMENT PROGRAMME |
 Even
in the best of times, companies are sold at values far lower than
the owner hoped for, or expected. Your plans to use the sale proceeds
– either for retirement or other purposes - can be seriously impacted
if your business does not secure its rightful sale value.
However, businesses are regularly bought and sold because the purchaser
has identified a “hidden value”. The Value Improvement Programme (CVIP)
lets you identify and realize operational or strategic changes that
confer such “hidden value”, and do this well in advance of sale time.
The prospective buyer sees what would have otherwise been hidden value
as “normal practice”, and you secure the rightful value for your business.
The CMR Value Improvement Programme is focused on raising
the valuation that a prospective purchaser puts on your company, identifying
new value and imbedding new efficiencies and practices that will have
a tangible impact.
Working with CMR, you are able to realise hidden value and increased
pre-sale profitability. Implementing these changes lets you present
your business to potential purchasers in optimum condition. This puts
you in the driving seat, enabling you to drive up price/earnings multiples
and reduce a purchaser’s ability for highlighting negative or non-performing
areasof your company.
| Approach |
Our approach is to look for opportunities
to reduce operating cost and to improve revenue. But we focus
on more than simple “cost-cutting”. While we seek to eliminate
costs that add no real value to the business, we may actually
recommend increased spend on critical areas that can really
drive profitability. We also cast a strategic eye over the company’s
customer base, routes to market and product positioning. We
look for quick-wins that can improve short-term viability, as
well as longer-term initiatives that will build value ready
for sale.
We would expect to work with your company potentially months
(or even a year or two) prior to it actually coming to sale.
In this way, any cost reduction, revenue enhancement or value
improvement initiatives we implement will be, by sale date,
treated as normal and imbedded practices that a potential purchaser
will not be allowed to ignore in establishing sale price.
Our remuneration is normally based on a pure success fee and/or
per-diem fee rate, or a combination of these, depending on circumstances.
Our aim is to deliver value improvements to your company that
can be financed by increments in your cash flow rather
than by burdening existing flows.
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| First Steps |
Upon invitation, we will
undertake an initial review of your company during which we
will establish the areas and levels of value improvement we
expect to deliver. Following this, which we would expect to
be formally engaged with agreed terms and conditions. If our
review produces no opportunity for value improvement then that
review will be free of charge. If it does and you do engage
us then that review will also be free of charge. Otherwise a
small fee will apply.
Key Benefits for You
By engaging the Cavendish Value Improvement Programme you
will benefit by:
- owning an organisation truly fit
for sale and one that is quicker and easier to sell;
- realising clear and tangible increases
in the value of your company that will translate into
a higher sale price;
- experiencing pre-sale gains in profitability
, providing short-term financial benefit;
- strengthening staff motivation
and loyalty through direct involvement with the
programme;
- achieving gains while minimising
impacts on cash flow in terms of financing these value
improvements
- working with seasoned practitioners
who have had practical experiences of leading and managing
companies just like yours.
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| If you would like more information,
please send a brief email. We will send details to you. Email: cvip@cmruk.com
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