South African-based international financial services and advisory giant Carrick Wealth has announced the formation of a partnership with BDO Corporate Finance, allowing Carrick business owners access to corporate finance advisory services, including assistance for those adviser firms looking to exit the industry.
BDO Corporate Finance ranks itself as a "top-tier transaction support advisor in the dealmakers mergers and acquisitions ranking" and a specialist valuation, mergers and acquisition and transaction advisory practice.
Other services that will be offered include the drafting of shareholders agreements, buy-sell agreements, key man insurance, making sure that corporate governance is in place.
Mike Fannin, founder and non-executive director of the Carrick Group of Companies, "This opportunity is very much for those clients who have reached the point where they're looking to have some form of liquidity event within their business.
"We are also looking to assist those involved in the strategic decision-making process in terms of the business's ongoing growth, such as acquisitions or divestiture of divisions."
The partnership will enable Carrick clients access to corporate finance services including:
- Full or partial disposal of your equity position in your business;
- Introduction of a strategic equity partner to the business, including robust B-BBEE transactions;
- Raising acquisition and debt finance;
- Acquiring a minority or majority stake in target;
- Management buy-outs and buy-ins; and
- Guidance on getting your business ready for sale.
"It's very much about adding value, but also adding value through creating new liquidity potential," clarifies Fannin.
"You have surrounded yourself with a team of experts in building your business, why then should you not do the same when you start considering the options to eventually exit?" asks Guy Steele, Head of Mergers & Acquisitions at BDO Corporate Finance.
"In our experience, a structured process in any corporate action whether it be buying or selling is beneficial to all parties. There is nothing like a little competitive tension to drive price and timetable.
"Also, never underestimate the importance of sale readiness - make sure the house is in good order when trying to attract buyers as this is likely to maximise your price and minimise your ongoing obligations in the form of warranties and indemnities".
"While some advisors like the quickest, easiest deal, we would rather have the hardest, longest deal if that's the right option for the client. Your business is, after all, arguably the most important financial asset in your life" reiterates Steele.