Expert: Mark Lyons, Investment Director, Puma Facilitator: John Chapman, Catalyst Partners
Headlines:
- Key considerations for growth included hiring, sales, marketing, and technology investments, as well as finding appropriate funding sources for organic growth or external financing
- Factors for selling include valuation expectations, personal circumstances, economic outlook, and potential buyers like private equity firms
Discussion:
The session explored strategic options for financial services businesses, focusing on considerations for growth and selling. Topics included hiring, technology investment, external financing for growth, valuation expectations, timing, and integration challenges for selling. Due diligence, data preparation, managing client expectations, and transitioning to financial planning were all emphasised, as well as the pros and cons of working with different investors.
Integration challenges and due diligence:
Delegates shared integration challenges, such as aligning processes, systems, and cultures. Thorough due diligence, data preparation, and managing client expectations during the sale process were emphasized.
Personal experiences and insights:
The personal experiences and insights from their growth and sale journeys were shared including the challenges, lessons learned, and strategies employed.
Evaluate buyer alignment:
Ensure alignment of potential buyers or investors with the business's culture and values for successful integration.
Streamline due diligence:
Prepare comprehensive data and documentation beforehand to streamline due diligence and maintain momentum during a sale.
Manage client expectations:
Effective communication throughout the sale process minimizes disruptions and maintains trust.
Seek expert guidance:
Engage external advisors with relevant industry experience to guide the sale or acquisition process.
Understand integration plans:
Understand the potential buyer's integration plans, processes, and key personnel for a smooth transition.
Assess readiness for growth:
Evaluate the business's readiness for growth, including resource availability, funding sources, and scalable systems.
Transition to financial planning:
Shift from traditional 'annual review' to forward-looking 'financial planning' mindset to better serve clients.
Key Takeaways:
- Evaluate buyer alignment - Ensure alignment of potential buyers or investors with the business's culture and values to facilitate integration
- Streamline due diligence - Prepare comprehensive data and documentation beforehand to streamline due diligence processes
- Manage client expectations - Communicate effectively to minimize disruptions and maintain client trust during the sale process
- Seek expert guidance - Engage external advisors with relevant industry experience to guide the sale or acquisition process
- Understand integration plans - Understand the potential buyer's integration plans, processes, and key personnel for a smooth transition
- Assess readiness for growth - Evaluate the business's readiness for growth in terms of resources, funding, and scalable systems
- Transition to financial planning - Shift focus from traditional 'annual review' to forward-looking 'financial planning' mindset to better serve clients' evolving needs
