To kick off the 2012 financial year, we present five key business decisions for your consideration:
1. Free up your cash flow. In an economic environment of ongoing uncertainty (unless your business is sharing in the mining & resources bonanza) and ballooning debtor days, anything you can do to release cash flow pressure would be a bonus for you and your business. Consider an Invoice Financing facility, with options available for businesses of all shapes, sizes and credit history.
2. Get your business valued. Exit planning experts agree that a regular check of your business’ market value is a good way to keep sale expectations realistic and to gain insight into key value-drivers (and destroyers).
3. Make an acquisition. In many sectors, the market for mergers & acquisitions is seen as offering favourable conditions for buyers, and opportunities are abundant. Purchasing a competitor or making a strategic acquisition can underpin growth through the next economic cycle.
4. Determine your exit objectives and timeline. If you are planning to exit at some stage in the next 3-5 years, take the time to identify your sale price, transaction structure and timeframe objectives. Taking the time to craft a comprehensive exit plan now ensures you have specific goals and parameters in place to guide your activities in the coming months.
5. Sell. If your business is in good shape and your expectations are realistic, there is no shortage of potential purchasers in the market at present. Good opportunities are comparatively scarce, so you may well be able to command a favourable and mutually beneficial outcome by deciding to exit over the next 12 months.
Naturally, Acquisiti can assist with any of the above, so don’t hesitate to contact us to explore any or all of the above concepts.