Advisory Services

 
It is all about the Exit.
Every entrepreneur will reach this point, either by choice or by circumstances.
 
The former is a pre-planned, architected last stage of a roadmap that was dreamt up years before.  This is the type of Exit investors are seeking.  If you have reached this point, congratulations!
 
The latter may be due to business challenges such as low demand, raising overheads and raising employee-attrition.  This type of Exit is known as a fire-sale.
Benefits of An Architected SBU
  • Investable BU; investors will come to you = Power to negotiate
  • Accountability to stakeholders & shareholders
  • Great ROI for investors, management & staff
  • Career-planning for employees
  • Relatively quicker, easier & low cost 
Whatever the purpose, the SBU process is extremely technical and multi-staged:

  1. Client-consultant Match. Meeting with Client to check for chemistry, time-line allowance, Ask etc.

  2. Technical assessment of suitability of sale (market-rates, buyers' profiles, financial ratios, etc).

  3. White-washing (creation of business decks, financials, legal etc)

  4. Marketing & Public-relations

  5. Investor-Relations Info-Sessions (IRIS)​​​

    • Presentation​

    • Negotiation

  6. Confirmation of terms of SBU

  7. Hand-Over Take-Over (HOTO) procedures

  8. Contract Signing

  9. Post-sale Itinerary (PI)

  10. Contingency Management

FAQ:

  1. What can go wrong if the SBU is not professionally administered?

    • Low Return-on-Investment.

    • Disputes leading to claw-back of investment.

    • Litigation (buyer may sue for misrepresentation)​.

  2. How does the SBU service work?

    • Client(out-going business owner) appoints SEED Ventures as Virtual CFO(VCFO).  Click here to access SV's website.

    • SV accesses BU and if suitable, appoints us for execution.​ 

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  3. What are the professional fees involved?

    • Retainer starting from $1,900 per month + a success fee ranging from 10-30%

    • See here for details.

  4. For now, my company only requires a valuation report.  Are you able to assist and if so, how do the costs work?​

    • ​Yes, we do provide valuation services at the following rates:

      • 1-pager valuation opinion:

        • Cost: $1K​

        • Lead time: <1 week upon full submission of required company information

      • 5-pager valuation report​​​

        • Cost: Max of either $2,000 or $1,000 + 0.1% of Targeted Company Valuation(TCV)​.  Example:  Based on a TCV of $1,800,000, the fees payable are:  $1,000+0.1%*$1,800,000 = $2,800/-

        • Lead time: 2 - 4 weeks from full submission of required company information
           

  5. Who are the administrators and are they qualified?

    • Yes, professionally administered.

    • Turn-key Solution.  Spring Singapore pre-qualified Service Provider (HRSS).

  6. Due to cash-flow issues, my BU has to be off-loaded within a month.

    • It is unlikely for the SBU to be completed within a month.

  7. What if the case is accepted, but it takes too long to close?

    • Both SV and the client's interests are aligned in the sense that both parties seek a successful transaction, as quickly as possible.  

    • Fees.  Success-fees are paid only upon completion of transaction and payment made.

  8. What is the execution timeline?

    • Typically between 3 - 9 months.​         
       

  9. Why can't the job be done by a broker such as a property agent?  

    • A broker may act as eyes on the ground.  However, the work required is extremely technical.  

    • There are 9-items outside the scope of a regular broker/agent's expertise such as valuation, due diligence and legal matters.

© 2013 by Smaths Group of Companies

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