Have you ever wished you could read minds?
At Benchmark International, our copywriters have pondered this possibility countless times. The idea of effortlessly extracting essential information from our clients' thoughts would make crafting the Information Memorandum (IM) a breeze. While we haven't quite mastered telepathy, the power of collaboration remains our greatest ally.
As industry experts, we recognise that our clients possess unparalleled knowledge about their businesses. Your insight, knowledge and experience are the driving force that propels us forward in creating a compelling IM that leaves potential buyers wanting to know more. To help you maximise your impact and contribute to the success of the IM bringing potential buyers to the table, I've compiled some valuable tips:
Be Proactive: Initiate the process by being proactive when supplying information, both during initial engagement conversations and when filling in the Q&A. Your initiative sets the pace for a smooth collaboration, not just now, but throughout the process.
Be Comprehensive: Provide detailed answers to the Q&A, supported by hard facts and figures. This allows us to understand your business thoroughly and present it in the best possible light, while also expediting the process.
Adopt a Buyer's Mindset: Put yourself in the shoes of a potential buyer and consider what crucial information they may require. Ask, "If I were acquiring a company like mine, what would I need to know?" Highlight key metrics, KPIs and growth opportunities that define your company's value.
‘Mind Your Language’: Embrace clear and accessible language, avoiding technical jargon and industry-specific terms that might alienate readers. Of course, you can still use this sparingly where relevant and necessary. One trick is to ensure the Executive Summary is in layman’s terms and crystal clear on what the business does, how, and why. This sets the right tone for the rest of the document and allows for the occasional diversion into industry and technical jargon when needed.
Highlight the ‘Opportunity’: Collaborate with us to showcase your company's potential, balancing ambition with realism to present a compelling case without compromising credibility. As Benchmark International MD, Nick Hulme, highlights in his article Valuing Companies - 7 Pointers from 30 Years' Experience in the UK, the ‘opportunity’ is fundamental to any valuation, not just the numbers.
Numbers Matter: Comprehensive financial analysis is critical; buyers need to understand the financial underpinnings of your business to make informed decisions. To understand this, they will need an explanation of the trends regarding three key numbers – sales, margins, and overheads. Sales are often the easiest to explain but remember that even small changes in margins can have a big impact on the bottom line. Historical, present, and future!
Trust Us on Style: We have refined our IM style over the years, and it has proven effective. While your feedback is valuable, adhering to concise written content and leveraging visuals for clarity allows buyers to absorb information quickly and ensure optimal results.
While mind-reading remains an enigma yet to be unravelled, the power of collaboration between our team and you, our client, is a powerful tool in creating a captivating and impactful IM. Your insights serve as the bedrock of this document, enabling us to attract the right buyers and guide you throughout this process.
Together, we aim to produce a bespoke IM that serves as a compelling sales tool, unlocking your company's potential in the market.
T: +44 (0) 161 359 4400
Europe: Michael Lawrie at +44 (0) 161 359 4400 / Lawrie@BenchmarkIntl.com
Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com
Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com
ABOUT BENCHMARK INTERNATIONAL:
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.