Exiting an investment, whether through a partial or complete sale of a stand-alone business, carve-out, spin-out or IPO, requires a thoughtful and rigorous approach. Identifying and mitigating potential issues while structuring and positioning the business or assets properly is essential to maximizing value and avoiding surprises and potential disruption.
By integrating our deep heritage in valuation and investment banking with robust transaction support capabilities, Houlihan Lokey provides a market-based, defensible approach to helping client’s realize value and manage messaging to potential buyers.
We support clients with the following Seller Readiness Services, including:
- Assisting in determining the defensible, normalized run-rate performance of the business
- Providing distributable, branded seller diligence reports and non-branded seller assist reports
- Identifying and validating key risks and opportunities impacting future performance and valuation
- Assessing the quality and consistency of underlying financial record keeping and management’s ability to respond to buyer requests
- Working closely with clients’ other advisors and providing specific, real-time market-based input regarding the confidential information memorandum and other process documents
- Evaluating potential buyer positions and developing tax and financial scenarios to help maximize after-tax proceeds
- Preparing a strategic and competitive industry-based market assessment
- Identifying, assessing, and supporting potential revenue and cost synergies
- Preparing, populating, and managing data rooms and buyer information requests
- Creating and implementing transition planning and post-separation activities
- Assessing indirect and non-allocated costs, stranded costs, idled capacity, and potential impacts of wind-down in carve-outs and divestitures
- Evaluating, providing input on, and assisting with the management of the Transition Services Agreement (TSA)
- Providing technical tax and accounting support regarding divestitures, carve-outs, and dispositions
No two transactions are the same nor is our seller approach. We tailor and deliver these specific services with the buyer and transaction in mind, and focus on helping you run an efficient process while maximizing after-tax proceeds and achieving your strategic goals.