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Kevin Uphill Avondale

Company Valuations & How You Can Increase. Kevin Uphill Avondale. www.avondale.co.uk. The Market . Strategic deals + Economies 1 + Synergy 1 + Value influence 1 Sum 6. Avondale team of 20, 35 plus transactions per annum. Commercial specialists.

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Kevin Uphill Avondale

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  1. Company Valuations & How You Can Increase Kevin Uphill Avondale www.avondale.co.uk
  2. The Market Strategic deals + Economies 1 + Synergy 1 + Value influence 1 Sum 6 Avondale team of 20, 35 plus transactions per annum. Commercial specialists. Organic growth slow driving acquisitions (average 4 bids per project). Fast change driving interest in niche companies with products. www.avondale.co.uk
  3. Timing When /why buy When/why sell Personal/strategic cross roads Growth in sector House in order Leap of faith Acquisitions faster Own house in order Cashflow strong Organic growth slow Low interests rates Create shareholder value New products/team/ services www.avondale.co.uk
  4. Valuation Methods Discounted cash flow forecast or price earnings multiple of profits Debt free/cash free Adjustments to profits Valuations are financial forecasts to exceed in the process www.avondale.co.uk
  5. www.avondale.co.uk
  6. Adjusted Balance Sheet Surplus cash negotiate extra to deal for tax savings but be warned buyers will try and include as goodwill, if its there. Consider tax instrument to remove surplus – EFURB? Debt- Long term liabilities Less- Cash www.avondale.co.uk
  7. Adjusted Profit & Loss Forecast Financial value x 4 est. 4 x £316k = £1.26 ml Actual Marketed on Offers 4 bids Offer achieved £1.9 ml --------------------------------- Dutch co seeking UK base www.avondale.co.uk
  8. 2. Deferred Payment 1. On Completion £1,450,000 3. Earn out £ 225,000 Deal Structure £ 225,000 Deal structure is a multiple influencer 4. Total£1,900,000 Protections Charges on shares for deferred Earn out on gross not profit- easier to define Earn out on current not growth Protections business to be run materially same Quality buyer/covenant Access to records Reverse non compete www.avondale.co.uk
  9. Strategic deals Case Studies Positioning - Modelling - Deal Structure 35% of projects international buyers 2012 www.avondale.co.uk
  10. Value Drivers The right advisor, buyer and process Right timing Management Strategy Preparation (Value Build & Business Design) The Profit Engine Company Foundation Current reality- future reality- options – strategy - implement www.avondale.co.uk
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