The implementation of shareholder strategy implies complexity, a methodical approach and an in depth understanding of transactional processes.
One of La Baume Finance’s key objectives is to enable our clients to step back from the operational detail. With our assistance, this will enable them so as to define a winning shareholder strategy and then to implement it with our continued support. This approach often takes them through a period of uncertainty and questioning.
SALE / TRANSMISSION
EXTERNAL GROWTH / BUILD-UP
Our first action is to understand the « Why »; that is, the reason our potential client wishes to go down a specific route. We will only undertake the assignment after understanding, testing and validating his or her objectives.
The analysis of factors both internal and external to our client's organisation will enable us to define the tactical requirements of the transaction envisaged and to fix a timetable for achieving it.
We explore all possibilities so as to ensure that the chosen path is optimal for attaining our client's objectives.
In the search for an advisor to accompany them, the shareholder or entrepreneur should be sure to have the answers to the following questions:
Do you know and understand my sector?
What makes you different?
What is your level of expertise and experience?
What are your references?
What resources do you have?
What remuneration structure do you operate?
What networks do you have?
Why do I need to be advised?
Can you operate on an international basis?
Who will be working on my assignment?
What other value-added do you have than my normal advisors?
Why do you work only on an exclusive basis?
What is the length of an assignment?
The entrepreneur's ABC
Afterwards : What will the role and the position of the head of the company be if they sell or lose majority control?
Agenda : Is this a good time to conduct a transaction ?
Anticipation : Is the company internally prepared for the planned transaction,(organizationally, financially) as well as externally prepared (economic cycle, technology, sector appetite)
Autonomy : Maintaining financial or management autonomy is not necessarily an end in itself. It very much depends on the strategy of the company and the perspectives of the sector in which it operates, as well as the capacity for the current shareholders to implement this strategy.
Financing : How to structure the financial requirements of a transaction ?
International : Does the company have what it takes to become international, without being weakened ? How to strengthen the international DNA ?
Liquidity : In what way can shareholder liquidity be assured?
Long-term viability : What is the impact of a transaction on the long-term viability of the business ? Has the impact been taken into account ?
Control : If it is in line the with company's strategy, how to maintain control of the company when the shareholding is opened up ? If not, how to maintain control ?
Corporate Heritage : How to take this into account when defining a shareholder strategy ?
Culture : What are the cultural and organisational issues (linked to history, to the sector or to geography) that require focus prior to making a decision with regard to a transaction ?
Dilution : What are the real consequences devolving from the creation of additional shares to either a majority or minority shareholder from the standpoints of governance, holdings and tax lisability ?
Disagreement : How to remove a shareholder when there exists significant disagreement or opposition to the management, functioning and development of the company ?
Preparation : What are the stages in the preparation of a transaction ?
Process : What are the stages of a handover or acquisition ? What is their impact on the running of the organisation and how to limit the effects ?
Representations and warrantes : Are the shareholders ready to take on this commitment, which is a condition of most transactions ?
Risks : What are the risks if the transaction does not complete (for the shareholders and for the company) ?
Shareholding Structure : Does it underpin the company's strategy in its current form ?
To be or not to be : Do I want to sell or buy ?
Ego : What is the rational and emotional split in a shareholder strategy decision ?
Value : There may be a significant difference between an established valuation (by either purchaser or seller) and the comparable value attributed by the market. This eventuality may influence or trigger reassessment of shareholder strategy.