Transaction Advisory Services
Expert financial advice for businesses and individuals.
Buy Side Due Diligence
Value Creation
KPI Performance Management
Divestiture
Buy Side Due Diligence
Buy Side Due Diligence
In an environment in which competition for the right deal is strengthening, an acquirer needs to be certain that they can generate incremental value over and above the premium paid.
Due diligence gives acquirers comfort that they are paying the right price for the right asset, and involves a bespoke investigation of the target’s financial and operational performance and (importantly) future potential under new ownership.
Opportunities for improvements post deal are crucial, and whilst downside risks are the traditional focus of diligence, successful acquirers should also investigate (and estimate as part of their business case) any upside potential.
At Ballards LLP, we understand that financial due diligence is key, but also that operational due diligence is now an integral part of the value story.
What do the cash flows from operations look like on a normalised basis?
How does the business operate day-to-day and what is its cost base?
How can the asset become more flexible adapting to constant internal and external changes?
What upside opportunities exist and how does the business compare to peer performance?
Value to you
The purpose of due diligence is to drive post acquisition value for our clients. More specifically this means:
Paying the right price for the future cash flows of the target business
Operational and industry insight to give you an advantage in the acquisition process
Cost reduction upsides that give downside protection if revenue growth fails to materialise
Identification of areas of risk that may be outside your experience
Identification of transaction issues that turn out to be deal stoppers or cause management teams to adjust unrealistic plans
Our buy-side due diligence service
We can help you……
Identify and validate value creation opportunities, and identify risks early.
Ensure the financial fundamentals of the business are reflected fairly in the numbers
Uncover potential issues that may impact the deal value before they arise (including financial and operational risks), and identify additional upsides
Ensure clarity on the cost base and its drivers
Provide independent review and challenge of management plans
Assess the effectiveness of current operating processes and systems, including capacity / utilisation / efficiency / capex etc
Identify and mitigate execution risk
Identify any one-off or dual running costs
Ensure risks are reflected in the deal valuation
Value Creation
Value creation
Value creation focuses on increasing revenue in a sustainable way without sacrificing margin, whilst at the same time optimising the operating cost base.
Revenue Growth
In an uncertain political and economic environment, it is increasingly important for companies to find effective ways to enhance their top line growth. Traditional blockers and challenges businesses typically encounter are:
- Operating within a market that finds itself stagnant
- A business model that has not been kept relevant or up to date in the eyes of its customers and consumers
- Being overtaken by existing competitors or competitors new to the market. This can be particularly challenging when competitors bring new technology into the sector.
We provide a full diagnosis of the business and examine a number of different growth opportunities. We then deliver a full implementation process, ensuring minimum disruption. We then work with you to identify new strategic opportunities that the changes may enable.
Identifying growth opportunities is approached in a structured manner:
Doing things differently
- Updating the business model, technology, or approach
- Getting to market quicker
- Examining the options of ‘Buying’ or ‘Building’ and the associated benefits and subsequent opportunities
Sales Uplift
- Increasing effectiveness of sales process
- Examining new product opportunities and success rates
Refocus
- Examining the route to past success
- Refocus management on realigned goals
- Prioritize areas of growth, new markets, and development
Diagnostic
- Identify and assess growth opportunities
- Exploit and convert easy opportunities and ‘low hanging fruit’
Cost control
It is essential to drive value in your business by operating efficiently and effectively. Our approach is to examine the costs of the business with an eye to reduce wherever possible, whilst increasing performance. This may be achieved via cost saving and capital release initiatives which will in turn fund growth and operational change. We will also concentrate on minimising any risk and disruption to the business.
- Lowering SG&A costs by streamlining processes, implementing shared services where possible, and delayering management
- Examination and lowering of fixed costs
- Reduction of procurement costs via scaled economies
- Improving cash forecasting and developing processes to release cash quickly
- Defined controls on capital investment and monitoring of benefits
- IT process improvement and cost reduction
KPI Performance Management
KPI Performance Management
Our team can develop a Key Performance Indicator reporting system to help you grow your business whilst remaining in control of the costs.
Evaluate
- Assess efficiency, quality, and timeliness of reporting processes and management input
- Evaluate how current KPIs compare to management and investor needs
- Analyse failures of KPIs to meet management and investor needs
Update
- Identify the KPIs of most relevance across the company
- Analyse the issues impacting reporting speed and quality
- Establish effective reporting of the most relevant KPIs
- Outline hierarchy of reporting
- Ensure KPIs are reported correctly in updated reporting systems
Refocus
- Implement and maintain identified changes in all aspects of the company to strengthen management reporting and use of KPIs
- Embed recurrent practices and standards within business
- Monitor and review performance
Divestiture
Divestiture
The use of divestitures to create shareholder value is increasing. Divestitures can raise capital to be invested in new opportunities, whilst preventing value leakage of underperforming businesses. Divestment happens when other companies value a business more than the owner does.
Divestment can come in various forms, including:
- Divestment to a trade buyer
- Divestment to a financial buyer, such as a private equity house
- An initial public offering (IPO)
- A carve-out to embark on a joint venture with other parties
To maximise speed and value, each form of divestiture should be approached in a different way.
What divestiture advice do we offer?
- Exit readiness diagnostics
- Vendor assistance with the requirements of a buy-side due diligence
- Sell-side due diligence
- Portfolio analysis and strategic advice
- Financial and operational carve-out advice
- Organisation design
- Future-state and day one operating model design
- Help in making decisions to sacrifice speed or value to improve the other
- Identification of opportunities for value creation
- Planning and structuring for transitional services agreements (TSAs)
- TSA exit and transition planning
- Business closing issues including Day One readiness, treasury financing, accounting deconsolidation, management changes and relations with workforce
Is this relevant to my business?
This service is relevant to companies wanting to:
- Explore potential exit routes
- Maximise value potential on exit
- Prepare differentially for all potential types of buyer
- Perform specialist options analysis on portfolio businesses
- Carve out a business to operate independently
- Carve out a business to be sold
When might my business look at this?
The following could cause your business to look into our divestiture advice service:
- Retirement or moving-on
- Lack of information provided to investors resulting in a business being undervalued: in this instance, divestment could boost shareholder value
- Underperformance within a company or business
- Insufficient business models or requirements
- Need for capital, for example if bankruptcy occurs
- Need for higher investment for growth to continue
- Changing preferences amongst consumers
- Changes in competitors
- Change in government policy or regulatory requirements
- Scrutiny triggered by transformative acquisitions
Case Studies
Case Study: Project Halo
Ballards LLP worked with Groupe Deslog to conduct financial, tax and IT due diligence to supports its acquisition of NFS360, a well-established and reputable business in the northeast of England
Kind words
Having worked with many accountants, Ballards LLP are very good, I get a personal service, and honest advice with no jargon. I particularly appreciate their pre-planning meetings which minimises the GP's time, their support is invaluable and I have on many occasions recommended them.
Practice Manager6 Partner GP Surgery Birmingham
Ballards LLP really understands the farming business, they speak my language and they know what's going on in the sector. Their advice on diversifying has been great for me. With Ballards LLP, I don't have to worry about the everyday financial compliance and I can concentrate on, with their assistance, growing the farm and pushing forward with my plans.
Owner Large West Midlands based cattle farm
Ballards LLP have really looked after our business, it was with their help that we acquired the funding to develop our business, and with their ongoing support we keep track of the business financially so we know where we're going.
Managing DirectorFamily owned nautical retailer
We have had a very long association with Ballards LLP who have provided our accounting services to us for over 15 years. It has been very reassuring to have such a professional organisation advising with our accounting and development requirements. I really can't recommend Ballards LLP highly enough.
Managing DirectorWorcestershire based Automotive Dealership
Previous
Next
Insight
The Importance of Regular Financial Audits: Ensuring Accuracy and Compliance
Maintaining accurate and reliable financial records is paramount. These records form the backbone for informed decision-making, building trust with stakeholders, and ensuring compliance with regulations. ...
Read More
Digital Transformation Roadmap: How Ballards LLP Can Help Your Business Thrive
In today's digital age, businesses of all sizes need to embrace digital transformation to stay competitive. Digital transformation is the process of using digital technologies ...
Read More
Property Watch – August 2024 UK residential property transactions
Property Watch – August 2024. Have a look at the UK residential property transactions for UK housing market for the year to 31 August 2024 ...
Read More
Leveraging Digital Transformation for Competitive Advantage in Mid-Size Enterprises
Digital transformation has become a critical factor in driving business growth and maintaining competitiveness in today's rapidly evolving marketplace. For mid-size enterprises, the strategic implementation ...
Read More
Leveraging Data Analytics for Strategic Decision-Making in Finance
Financial directors and IT leaders in mid-sized enterprises are increasingly recognising the transformative power of data analytics in driving strategic decision-making. This insight explores the ...
Read More
Supply Chain Optimisation: Driving Efficiency and Resilience
Supply chain optimisation stands as a critical component for businesses seeking to enhance their operational efficiency and maintain a competitive edge in today's market. By ...
Read More
Maximising Working Capital Efficiency in SMEs
By optimising the balance between current assets and current liabilities, businesses can ensure they have sufficient cash flow to meet short-term obligations while maximising their ...
Read More
The Future of Work: Financial Implications of Hybrid Models for UK Mid-Market Firms
The landscape of work is undergoing a profound transformation. As organisations navigate this new terrain, understanding and effectively managing the financial implications of hybrid work ...
Read More
The Role of Accounting in Risk Management: Protecting Your Business’s Future
Navigating uncertainty is a constant challenge. Whether it's fluctuating market conditions, potential fraud, or unforeseen operational disruptions, risks can quickly threaten a company's financial health ...
Read More
The Art of Leadership and Team Building: Key to Business Success
Leadership and team building are two key ingredients for a successful business. While these topics are often talked about broadly, the real power of good ...
Read More
The Impact of Accounting on Global Business: Shaping the Economy and Driving Growth
In the intricate world of global business, success hinges on effective financial management. At the heart of this lies accounting – a seemingly mundane discipline ...
Read More
Property Watch – July 2024 UK residential property transactions
Property Watch – July 2024. Have a look at the UK residential property transactions for UK housing market for the year to 31 July 2024 ...
Read More
Choosing the Right Accounting Software: A Guide for Businesses of All Sizes
Having the right accounting software can be a game-changer. It streamlines financial processes, saves you time and money, and empowers you to make informed decisions ...
Read More
Autumn Budget: How Potential Changes Could Impact You
The Autumn Budget, scheduled for October 30, 2024, is expected to introduce significant changes. Key points include:
Read More
Measuring Success: The Often Overlooked Digital Transformation Challenge
One of the most frequently overlooked digital transformation challenges is effectively measuring the success of these initiatives. While organisations are often eager to embark on ...
Read More
The Hidden Digital Transformation Challenges: Security and Data Privacy
As companies embrace digital transformation, they inadvertently expand their attack surface, exposing themselves to new cybersecurity risks. This presents one of the most pressing digital ...
Read More
Navigating the Top Digital Transformation Challenges in 2024
In today's rapidly evolving business landscape, organisations that fail to embrace digital transformation risk being left behind, while those that successfully navigate the challenges stand ...
Read More
Urgent Action Required: McCloud Remedy Pension Statements Deadline Approaches
As we approach the end of 2024, a crucial deadline is on the horizon for those affected by the McCloud Remedy regarding pension savings. The ...
Read More
Navigating Turbulent Waters: Economic Forecasts and Market Trends for UK Businesses
As we move further into 2024, the economic landscape continues to evolve, presenting both challenges and opportunities for companies across various sectors. Understanding the current ...
Read More
Fuelling the Engine: Growth and Scalability Strategies for Owner-Managed Businesses
In today’s market, owner-managed companies face a unique set of challenges and opportunities when it comes to growth and scalability. While the entrepreneurial spirit that ...
Read More
The Inclusion of GPs in ARRS Funding: Opportunities and Considerations
The UK government's recent announcement allocating £82 million for hiring GPs through Additional Roles Reimbursement Scheme (ARRS) funding has been met with enthusiasm from the ...
Read More
Start-Up Advice for Small Businesses: Launching Your Dream with Confidence
The entrepreneurial spirit burns bright in many – the desire to turn a passion into a thriving business. But navigating the complexities of starting a ...
Read More
Property Watch – June 2024 UK residential property transactions
Property Watch – June 2024. Have a look at the UK residential property transactions for UK housing market for the year to 30 June 2024 ...
Read More
Reasons to Outsource Payroll: Streamline Operations and Focus on What Matters Most
As a business owner, your time is valuable. You juggle countless responsibilities, from product development and marketing to customer service and sales. Payroll processing, while ...
Read More
Preventing Software Update Disasters: Key Questions for Business Leaders and non-technical staff in charge of IT
As a business leader, understanding how to prevent software update disasters is crucial, especially if your company is a small to medium-sized enterprise (SME) without ...
Read More
Beyond the Blue Screen: Broader Implications of the CrowdStrike Incident
The CrowdStrike incident will likely serve as a case study in the importance of rigorous testing, the risks of rapid update deployment, and the far-reaching ...
Read More
Navigating Uncertainty: Effective Financial Risk Management Strategies
Effective financial risk management is not just about avoiding pitfalls; it's about creating a resilient framework that allows businesses to thrive amidst uncertainty.
Read More
Safeguarding Your Business: Essential Strategies for Fraud Prevention
In safeguarding your business against fraud, you're not just protecting your assets; you're investing in the long-term security and success of your organisation.
Read More
How to Choose the Right Wealth Management Advisor? Building a Partnership for Financial Security
Building and safeguarding your wealth requires careful planning and expert guidance. At Ballards LLP, we understand the importance of choosing the right wealth management advisor ...
Read More
Important Xero Package Changes Coming 12 September 2024
Ballards LLP would like to inform you about upcoming changes to Xero Package Changes, which will take effect from 12 September 2024. Please see the ...
Read More
HMRC’s New Campaign Targets Persons Of Significant Control
HMRC has launched a new campaign that could impact Ballard’s clients, especially those with significant control over companies. This initiative aims to ensure that tax ...
Read More
What is Environmental, Social, and Governance (ESG), and why is it important?
ESG stands for Environmental, Social, and Governance. It's a framework used to measure a business's impact on society and the environment, as well as its ...
Read More
What Are The Core Elements of Digital Transformation? Charting Your Course to a Digital Future
In today's dynamic business landscape, digital transformation is no longer optional – it's essential for survival and growth. But what exactly is digital transformation, and ...
Read More
Property Watch – May 2024 UK residential property transactions
Property Watch – May 2024. Have a look at the UK residential property transactions for UK housing market for the year to 1 May 2024 ...
Read More
Digital Transformation: Dealing with legacy systems
Over the years I’ve noticed that one of the most significant challenges faced by Owner-Managed Businesses (OMBs) is dealing with legacy systems and processes that ...
Read More
Digital Transformation: Prioritisation with limited resources
Some of the most pressing challenges faced by Owner-Managed Businesses (OMBs) is prioritising digital transformation initiatives amid competing business needs. With limited resources and multiple ...
Read More
Digital Transformation: Having a lack of in-house expertise
Over the years, I've noticed that one of the most significant challenges faced by Owner-Managed Businesses (OMBs) is the lack of in-house expertise to effectively ...
Read More
Digital Transformation: Resistance to change
I've often found that one of the most significant challenges faced by Owner-Managed Businesses (OMBs) is resistance to change. This resistance can manifest in various ...
Read More
What is Unlimited Liability? Understanding the Risks and Rewards
As a business owner, navigating the legal and financial complexities can be daunting. One crucial concept to understand is unlimited liability. At Ballards LLP, we ...
Read More
6 Reasons Why Businesses Outsource Financial Tasks: Focus on Growth, Not Paperwork
As a business owner, you wear many hats. From product development and marketing to customer service and sales, your time is a precious commodity. Yet, ...
Read More
The McCloud Pension Remedy: What NHS Staff Need to Know
The long-awaited McCloud pension remedy is finally being implemented, but it brings significant complexities that NHS staff and GP practices must prepare for. At the ...
Read More
Are Wealth Management Services Worth It? A Specialist’s Perspective
At Ballards LLP, we understand that navigating the complexities of wealth management can be daunting. You've worked hard to accumulate your assets, and ensuring their ...
Read More
What is “Digital First” and what are the business benefits?
Where technology continues to reshape the way companies operate and interact with customers, adopting a digital first approach has become increasingly crucial. This shift towards ...
Read More
Nashville Was Investment Music To My Ears – By Andy Bewick
Check out our latest International Insight blog by Andy Bewick. Andy and James Syree visit the Nashville Area Chamber of Commerce during their recent trip ...
Read More
How Being Data Driven Can Support Your Business
In an age where data is abundant and technology is advanced, embracing data-driven decision making has become a crucial strategy for businesses to thrive and ...
Read More
Financial Modelling for Business Growth
Financial modelling has emerged as a powerful tool that enables organisations to assess their financial performance, evaluate potential scenarios, and make data-driven decisions. By leveraging ...
Read More
Property Watch – April 2024 UK residential property transactions
Property Watch – April 2024. Have a look at the UK residential property transactions for UK housing market for the year to 30 April 2024 ...
Read More
Benefits of Outsourcing Bookkeeping: Free Up Your Time and Focus on What Matters Most
Here at Ballards LLP, our specialist bookkeepers understand the challenges faced by busy business owners. We believe that by outsourcing bookkeeping, you can free up ...
Read More
How to Start a Business and What to Keep in Mind Financially
At Ballards LLP, our specialist accountants are here to guide you through the financial considerations of starting a business, ensuring you're well-equipped for success. ...
Read More
Cybersecurity: Answering the Executive Team’s Key Questions
By Bal Siyan, Fractional IT Director & CIO. As an executive leader, you know that cybersecurity is critical for protecting your law firm's data, reputation, ...
Read More