Maximizing your company

http://www.megamax-energy.com/vitaminh.html
While that relationship may well havebeen affected, another importanf area that has been impacte has been private institutional investment – in the eagerness of private equity funds to enter into and the valuation that an institutional investord might assign to a This is because private equity firms often augment their equity investment with bank debt in order to maximizre the returns to their shareholders. If credit conditions make it more difficulyt for these firms toraise debt, deals are less with the ultimate resulgt of a lower valuation for a companuy if a transaction is beintg contemplated.
If owners or management of any company are anticipating a saleor capital-raisinvg event of this type at some how can they ensure that the valuatio n is a favorable as possible? A few For example, the company shouls have a well-written, robust shareholder’s This is a very basic, but key, part of any corporate It addresses issues such as ownership, the rule governing sales of shares, composition of the board of directorx and other matters. A corporate attorney with experiencd in addressing these specific matters shoulddraft it.
If you have not had competenft counsel review thesedocuments recently, it would be moneyg well spent: An ounce of prevention here can mitigatd huge problems later. Any law firm with a businesw law practice should be able to assist in a mattere suchas this. It should go without sayinh that if your accounting records are inpoor condition, it will be extremel hard to support any sort of attractivs valuation. In fact, in this market, many firms will simplyy pass on a deal where the financia l recordsare suspect. This is simply because there are enough other dealws out there where this is not an issue that an investo r will just move on tothose deals.
Any company that has any reasonn to believe that it will be lookingv to raise outsidecapital – debt or equity should have appropriate accounting controls and procedures in If the company does not possesas the internal expertise to implement thesee controls, any competent CPA firm should be able to assist. As an end management should look to put in place a processz that results in auditedfinancial statements. If managementy can articulate and defend how the company will achiev e its growth goals for the next coupleof years, it will have a majo r impact on valuation.
This includes concrete sales goals, executablwe plans to achieve those goals and infrastructure rollouft tosupport growth. Even though growthj right now mightbe minimal, if managemenr can credibly demonstrate how it will address this issue, it can make a very significanf difference in how the company is viewerd by an outside investor. By preemptively addressing theses issues, management seeking outside investment can make their companhy more attractive and help support a more compellintg valuation from the perspective ofall