Clear Practical Advice
Investrend Corporate Advisory delivers information and advice to everyone from CEO’s and General Managers’ to small business owners of start-ups wishing to elevate their business to a new level.
Our professional advisors have an in depth understanding of what is required to run a successful business with many years collective experience in running and managing businesses or developing emerging business opportunities for our clients.
Our Mission – To assist our Clients’ in achieving their financial goals and objectives, and take away as much of stress as possible that is normally associated with it.
Our Vision – To utilise our network of outstanding professionals to deliver a comprehensive and cost effective solution to our clients’ needs. To achieve this vision we will:
- Communicate with clients on a regular basis
- Offer proactive advice
- Utilise the expertise of highly trained professionals to offer comprehensive solutions
- Clearly explain all available options to help clients’ make an informed decision
Investrend Corporate Advisory’s key focus is to provide advisory services to “SME” private companies, “mid cap” listed companies (outside of ASX 100) and “emerging” listed companies (outside of ASX 200). Our wealth of experience sees us well placed to turn a small or emerging business into a genuine market mover.
Our reputation has been gained by being proactive and providing high-quality strategic advice to our clients on:
- Negotiating and Structuring Merger and Acquisition Transactions
- Developing and implementing Acquisition and Divestment Strategies
- Leveraged Buy-Outs (LBO)
- Management Buy-Outs (MBO)
- Management Buy-Ins (MBI)
- Devising Innovative Capital Raising and Financing Strategies
- Capital Restructuring
- Corporate Restructuring
- Self Managed Superannuation Funds
What separates those who know what to do from those who actually get it done?
Those who succeed follow a proven process and plan, the architecture to make sure things don’t get overlooked. It’s like a pre-shot routine in golf, preparing to serve in tennis, or a pilot going over a pre-flight checklist before take-off. Investrend Corporate Advisory helps clients’ follow this proven routine, to get everything set up correctly, get aligned properly and then ready for a successful outcome
M&A Strategies
Make the Right Decision
The decision to merge with or acquire another business is not a decision to be taken lightly. You need to carefully weigh the risks and benefits and give serious consideration to the compatibility of the two businesses.
Mergers and acquisitions can provide you with outstanding growth and financial returns. However, there is also a risk that the merger or acquisition will fail if not properly executed. You can reduce the risk before you commit by examining the necessary issues through our M&A Advisory service, including:
- Whether the two businesses are a good strategic ‘fit’;
- The expected returns to be gained from the transaction;
- The indicators you will need to identify when you’ve achieved the expected returns;
- An independent appraisal of the purchase price;
- Support for a single vision for the future of the business from both parties;
- An understanding of how the new business will operate after the transaction;
- Whether all potential legal risks and obligations have been identified.
Planning for Strategic Success
Imagine having access to all the information you need to evaluate and develop your merger or acquisition strategy. Expert advice that gives you the peace of mind of knowing exactly how your merger or acquisition will succeed, and solutions to address all the key issues, including:
- An analysis of operational and competitive synergies;
- Business Case modeling to determine a fair acquisition price;
- Developing a Business Plan for the combined business;
- Facilitating communication to ensure both parties establish a common vision and strategy for the new business;
- Aligning the corporate culture and values of the two businesses to support a common vision;
- Developing new marketing, communications and brand strategies;
- Identifying potential financial, tax and legal issues.
- Post-deal support and tracking of financial returns.
INVESTREND’S THOROUGH APPROACH TO M&A ADVISORY WILL ENSURE THE BEST POSSIBLE DEAL FOR OUR CLIENTS.
M&A Integration
MERGERS AND ACQUISITIONS INTEGRATION: THE INTELLIGENT APPROACH
Mergers and acquisitions can deliver outstanding returns but not without risk. Effective post-merger integration is the key to optimising financial returns and migrating risk.
The execution of post-merger integration is critical to the success of any merger or acquisition. The next three highest ranking factors are professional integration project management, innovative integration approach, and Communications.
All of these success factors demonstrate the importance of post-merger integration in making your transaction a success, and the need to engage professional specialists.
EFFECTIVE POST-MERGER INTEGRATION STARTS WITH GOODWILL
The purchase price that you have paid for your acquisition has two main components, the value of the physical assets you have acquired and goodwill.
Goodwill is usually the larger of these two components, with the opportunity for you to leverage the greatest returns. The assets that underpin Goodwill are your Employees, Customers, Brand and Intellectual Property.
Imagine the financial returns you can gain from an aligned culture with motivated, dedicated employees, strong brand positioning, and ensuring that you retain your best people and customers, rather than losing them to your competitors. This is the power of the post-merger integration of your Goodwill assets.
THE ESSENTIAL INGREDIENT OF GOODWILL IS CULTURE
Establish an aligned Culture and you will retain your best people rather than risking losing them, and their intellectual property, to your competitors. Motivated employees give great customer service, which leads to customer and brand loyalty.
Therefore, through culture you optimise returns from your four Goodwill assets Employees, Customers, Brand and Intellectual Property.
Seamless post-merger integration of physical assets, such as systems and operations, is important and will provide returns from cost-savings. However, also addressing Goodwill, and its underlying assets, will provide much more significant returns from growth.
DELIVERING OPTIMAL FINANCIAL RETURNS FOR YOU
At Investrend Corporate Advisory we provide you with an intelligent approach to post-merger integration that delivers not only the integration project to scope, deadline and budget, but will also identify and deliver all measurable financial returns for you.
Our innovative post-merger integration approach includes:
- Cultural alignment;
- Brand alignment and positioning;
- Protection of intellectual property;
- Customer retention;
- Seamless integration of systems and operations;
- Internal and external communications strategies;
- Effective change management;
- Identification of financial returns and how they can be captured.
SUCCESSFUL OUTCOMES
In addition to ensuring your post-merger integration is a financial success, you will also have the benefits of:
- Retention of key talent;
- High morale and a sense of shared values among employees;
- Motivated, productive employees;
- Retention of loyal customers;
- Improved customer service levels;
Strong brand positioning and reputation.
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Changing business needs often lead an organisation to consider restructuring. A successful restructure involves not only the creation of a sound strategy, but the effective implementation of that strategy.
Our restructuring specialists work with both performing and underperforming companies to rapidly transform their business and/or improve their performance. We provide specialist services for businesses, or business units, that have cash flow, debt, or operational problems that are reducing profitability, detracting from growth in shareholder value, and/or causing financial instability. Reorganising a business to improve profitability gives rise to a range of issues that need addressing if the restructure is to succeed.
Timing is critical when a company is in distress or underperforming. We provide proven leadership to quickly assess a company’s financial position. We improve cash flow, stabilize and improve operations, communicate with key stakeholders to re-build their support, and assist management with creating and executing an achievable turnaround plan.
When it comes to implementing a new turnaround plan we are able to provide seasoned executives to assume key roles within an organisation to help drive the plan allowing senior management to stay focused on the core business.
WHEN SHOULD YOU ENGAGE US:
- if you are just hanging on and potentially facing insolvency issues
- if you are struggling to refinance or raise additional finance as required to sustain the business
- if you are experiencing a decline in sales
- if you are experiencing a decline in margins
- if you have lost a major client
- cash flow is becoming, or is tight
- creditor pressure is building
- your organisation has low levels of staff morale
- you have ATO or Superannuation arrears
- it is becoming difficult to manage cash across all of the divisions of the business
- agreements with bankers or financiers have been or are likely to be breached
- there are large cash flow fluctuations which are difficult to manage
- customers are taking longer to pay
- you want to reduce debt in your business
OUR SERVICES INCLUDE:
- turnaround strategies (development & implementation)
- development of cash flow and working capital models
- crisis management
- financial restructuring
- debt restructuring
- forecasting and swat analysis
- business strategy
- distressed mergers & acquisitions
- disposal of non-core assets
- creditor advisory
KEY BENEFITS TO YOUR BUSINESS:
WE WORK CLOSELY WITH MANAGEMENT TEAMS TO:
- improve cash flow and earnings
- arrange short term financing to ease cash flow issues and/or arrange a refinance of existing debt facilities
- negotiate revised payment terms with major creditors and/or financiers
- diagnose causes of profit decline and other business problems and provide recommendations to address the issues
- rebuild your relationship with key bankers and/or financiers
- prevent the company from becoming insolvent or going into voluntary administration, receivership or liquidation
- formulate a restructure plan if the company has gone into voluntary administration or receivership
- project manage the sale of the business or non-core assets
- provide greater cash flow and earnings forecasting visibility
- devise and implement an overall turnaround management plan
Investrend Corporate Advisory has access to extensive networks of contacts in the debt and equity markets. Our clients not only benefit from the level of our analysis and strategic insights, but from our well developed relationships with lenders, private equity houses and high net worth individuals.
Upon completion of a standard due diligence, Investrend Corporate Advisory determines the optimal investment ready structure for a business that will then enable us to prepare the required memoranda for investors and financiers alike. Terms can be negotiated on behalf of the client, while strategic analysis and insights are provided throughout the capital raising processes.
Following a successful Capital Raising, Investrend Corporate Advisory maintains communication with all parties. Business, management and financial reports are analysed and regularly updated in order to develop models that allow for performance mapping against business plans and budgets.
A leveraged buyout, or LBO, is the acquisition of a company or division of a company with a substantial portion of borrowed funds.
Investrend Corporate Advisory can assist management teams to successfully plan and execute leveraged buyouts or management buyouts. We are a financial and strategic advisor to growing private companies. As consultants, we deliver substantial value for management teams through our core consulting services relating to executing a leveraged buyout.
Our leveraged buyout services include:
- developing value enhancing growth strategies,
- creating comprehensive business plans,
- finding and successfully securing the capital necessary for a leveraged buyout
As independent corporate financial advisors, Investrend specializes in creative corporate financing solutions that maximises shareholder value by minimizing ownership (equity) dilution and personal financial risk. Investrend Corporate Advisory is fast, trusted, and cost effective.
OUR SERVICES ARE AFFORDABLE AND DELIVER OBJECTIVE, EXPERIENCED ADVICE TO ESTABLISHED GROWING PRIVATE BUSINESSES
If you are currently working in a management role but with no (or limited) shareholding in the business, by taking the next step and investing a relatively small amount of money in an MBO transaction, you could stand to significantly increase your personal wealth in a short period of time. A bank or funder will support you financially for a number of years but once the finance is repaid you will have gained an equity value in your own business for a small investment.
Can I Really Run My Own Business?
You will more than likely be suffering from a number of doubts as to your capabilities in running a business of your own; this is common as an MBO is a big step to take. It is important to be confident in your team’s abilities and to convince funders that you are the right team to provide financial backing to. You may want to ask yourself the following questions:
- Are you and your team sufficiently experienced?
- Are you committed to seeing the transaction through?
- Do you have a clear vision or strategy to take the business forward?
- Will you be able to step up your role in the business in respect of dealing with staff and other stakeholders?
- Are you able to access some personal capital to invest?
In addition to looking at yourself and your team, you should also decide whether the company is a viable business going forward, does it have good prospects and are your plans going to improve its current trading position further? What are the risks facing the business and do you have a strategy to address or mitigate these?
As independent corporate advisors, Investrend specialises in creative MBO solutions. Investrend Corporate Advisory is fast, trusted, and cost effective.
Financing the Transaction
The major issue concerning management teams at this stage is how they are going to afford to acquire an established business themselves. It is important to note however, that the MBO team will only be required to input a relatively small portion of the overall consideration. The main reason you are asked to put your own capital in initially is to show your commitment to the deal. This is a commonly known as “hurt money”.
The remaining consideration often comprises bank debt in one form or another. It is one of the cheapest forms of financing but requires repaying prior to any other financial provider and will have strict terms attached.
Deferred consideration may also be introduced. This is effectively where the existing shareholders lend back to the company a proportion of the consideration for a period.
Venture capital (“VC”) funding is another common option (usually alongside bank funding) for financing the purchase price. A Venture Capitalist will assist companies by injecting cash in return for an equity stake. They have a mid-term plan of typically 3 – 5 years where they aim to increase the value of their stake (as well as yours) and ultimately exit through a number of possible routes. They will usually appoint a member of their team to your board to assist in decision making and strategic direction. They do not however, usually take any direct part in the day to day running of the business.
In order to obtain funding from financial institutions you must have a detailed and well thought through business plan for success.
To measure this, funders will invariably focus on three key criteria:
- A strong and well-balanced management team;
- A commercially viable existing business; and
- A sound and developed strategy for the future.
All of the above areas need to be presented to chosen financiers in the correct manner through both the business plan and effective meetings with funders and Investrend Corporate Advisory can assist you in this process. Investrend Corporate Advisory is fast, trusted, and cost effective.
The Management Team
This is one of the most critical aspects. A strong management team in a weak business is arguably a better bet than a great business being taken over by a poor management team.
You will need to demonstrate that your team is more than capable of running and growing the business, vis-à-vis it has the right spread of skills and necessary experience. A typical MBO team is made up of the following elements, consisting of 3-4 people usually:
- Managing Director
- Finance Director
- Sales Director
- Production/Operations Director
If you can’t cover all these aspects it may be possible to fill the gaps with an external candidate. Investrend Corporate Advisory may be able to help find the right person. The above team is also not prescriptive. The key is to involve all significant members of management and this will vary case by case.
As independent corporate advisors, Investrend specialises in creative MBO solutions. Investrend Corporate Advisory is fast, trusted, and cost effective.
If you are a Management Buy In candidate please contact us to set up a confidential one to one discussion. We look forward to hearing from you
