Phase One – COSATA® (COmprehensive Strategic Analysis of Transition Alternatives)
In Phase One, Robbinex performs research both on your company and on the market in which it operates.
Research is performed as if a buyer were scrutinizing your company. The result of this is a report that will allow you to prepare for a buyer’s Due Diligence. It also provides a pause or decision-making point as to whether to go to market immediately, remove any impediments to a sale, or implement our value enhancement recommendations.
Market Research is a crucial step in the process of selling a business for the highest price. Robbinex researchers study market definition, market share, industry trends, competition, niches, geographic influences, life expectancy of products/services, legislative factors, (all things that an investor will want to understand!) and of course, what motivates a buyer in a particular industry. As a business owner, bear in mind that almost every buyer will have a very different perception of “growth and risk “ of your business and in your industry than you do.
Analysis and comparison of your firm’s operating results with industry standards is paramount to understanding how the business is operating in the market and why; what factors are restricting or limiting the business; and what would happen if they were removed. Robbinex valuators carefully analyze the business, using a recasting procedure that is critical to determining a realistic value of the business (see also our section on Valuation)
Valuation is generally performed by assessing the business from numerous points of view – the most common being:
- Historical Recast Earnings,
- Present Value of Assets with Goodwill
- Comparable transactions and, most importantly,
- Future Sustainable Earnings.
The Robbinex valuation is delivered in a clear, concise manner. As an owner, you will know what your business is worth and why.
Value Enhancement Opportunities are often uncovered and, with some effort on the part of owners, may significantly increase the value of a business in a relatively short period of time. These opportunities will be detailed in a clear, easy-to-understand format.
Exit Planning can significantly impact your decision with respect to transitioning your business. Robbinex negotiators know that it’s not how much you sell your business for that counts, but how much you get to keep after tax that’s more important. Often, a little time spent on issues such as
- tax planning,
- considering whether to sell assets or shares,
- consider whether to include or exclude real estate from the offering,
can make a substantial difference on the total after tax compensation realized from a transaction.
The Phase One COSATA® report summarizes our findings with respect to the foregoing issues.
The Phase One COSATA® report is the documentation of the foregoing. It is written in a clear concise manner. As an owner, you will have a clear understanding of the value of your business, its problems, challenges and opportunities.
As an owner, you will have a clear understanding of the value of your business, its problems, challenges and opportunities—certainly from an investor’s perspective, but many of our clients have also received important insights which have allowed them to dramatically improve their businesses.