Preparation for Sale

We advise and assist in readying the business commercially in the run-up to the sale process

Cogency will work with you and your management team to ensure a highly-targeted sale process, the presentation of the business optimally shaped to appeal to the targeted bidders, and a credible, robust future strategy that will enable the targeted bidders to develop a solid investment case.

In overview, our work includes:

1. Refining the list of potential bidders, and profiling the primary target(s).

Your management team and advisors will already have a long list of prospective bidders. We may be able to add a few, but our aim is to bring our industry insight and contact networks to bear in order to reduce it to a meaningful short list, with 1 to 3 “favourites”. Essentially, we aim to add refinement to the profiling and targeting of potential buyers.

2. Shaping and positioning the business to be as attractive as possible to short listed bidders, and especially to the primary target(s).

This involves the very careful positioning of the business in the sale documents. It may also prompt a few minor modifications to the business, but certainly no major strategic or structural changes are envisaged. Again, we will add precision and refinement in presenting the current business as attractively as possible for the targeted buyers

3. Building up the future strategy – creating a credible and robust upside story.

The main weakness in many recent processes is that vendors’ focus has been on past performance, and managements’ plans for the future have been thin, generic, lacking substantiation and smelling of “wishful thinking”. This absence of robust, credible strategies fuels the impression of “no upside”, and additionally implies management weakness and lack of vision – and heavily impacts valuations.

This is about real substance, not clever wording. Prospective buyers will interrogate this part of the presentation of the company at least if not more closely than other parts – and if management’s development plans for the business are not totally robust, this will be quickly recognised.

We will work with you and your management team to develop a credible strategy that your team really believe in – so will present with confidence and commitment.

4. Preparing commercial elements of the sale documents.

We are not financial advisors, and do not seek to replace your bankers, nor to win the sale mandate. We will work with your management team in advance of and then alongside and closely with your other advisors in preparing the ‘story’ and commercial elements of the sale documents. Our work will be finished once the sale process commences.

Cogency works only in the chemicals and materials industries and only on the commercial logic of transactions. We have extensive insight into how the industry in general and its different sub-segments work, ”who’s who” in the industry, how financial investors and companies and executives “see the world” and what they are looking for in acquisitions, what adds or detracts from the credibility of strategies and management teams, and what makes deals happen (or fail). Consequently we are uniquely positioned to assist in fine-tuning and presenting the commercial aspects for a successful sale.