Value Enhancement
Value enhancement encompasses much more than the amount of money that changes hands in a business transaction. It also incorporates the economic terms of a deal as well as important intangible elements that influence the perception of 'value fairness’ and whether the personal objectives of business owners and executives have been met.
As illustrated in the adjacent diagram, Veracap has developed proprietary frameworks and processes that provide a systematic approach to ensuring that our client's financial objectives and personal goals are understood and achieved.
Veracap's Acquisition Value CycleTM is used to assist corporate acquirers in developing and
executing
a successful acquisition program. It illustrates how shareholder value enhancement is created through aligning the key variables of corporate strategy, target company analysis, valuation and pricing, deal execution and integration. The Acquisition Value CycleTM is featured in a forthcoming book entitled Corporate Acquisitions, due to be published in the spring of 2006.
Click here to view The Acquisition Value CycleTM diagram
Veracap's Value Enhancement FrameworkTM enables business owners to realize their personal and financial objectives by introducing appropriate planning and execution strategies in undertaking the sale of their company. It illustrates that opportunities for value enhancement are created through timing the sale, preparing for the sale and valuation and pricing initiatives. It demonstrates how to realize on the value that has been created through building deal momentum in the search for buyers, preliminary due diligence, deal structuring, negotiations and closing. The Value Enhancement FrameworkTM is the underlying theme of the book entitled Selling Your Private Company.
Click here to view The Value Enhancement FrameworkTM diagram
Veracap understands the unique dynamics that arise in selling to management. Veracap’s MBO Value MatrixTM is used to assist business owners and managers in arranging and negotiating a management buyout. With the aid of a Veracap facilitator, the MBO Value Matrix™ enables management, owners and investors to align their interests in developing workable solutions to the complex valuation and structuring issues that can arise during the MBO process.
The MBO Value MatrixTM is featured in an article entitled Management Buyouts: A Framework for Value Realization. (CMA Management Magazine, Aug./Sept. 2005)
Click here to view The MBO Value MatrixTM diagram
Veracap's Circles of SuccessionTM assists family business owners in assessing the strengths and weaknesses of each aspect of their ownership succession plans, and in successfully facilitating the family succession transition. It complements the efforts of tax, legal and other advisors by helping ensure congruity between valuation principals, shareholders agreements and the financial structure of the transaction. By focusing on The Circles of SuccessionTM our clients have been able to identify and correct for weaknesses in their ownership succession plan at an early stage prior to implementation. It also assists family business owners in their decision to attempt an ownership transfer within the family or to sell the business to a third party.
Click here to view The Circles of SuccessionTM diagram
Veracap's Value StratecutionTM refers to the process of identifying and aligning the principal drivers of business value in the business. This encompasses business strategy development through to execution in order to create shareholder value.
The ultimate objective is to enable value enhancement for business organizations,
possibly in contemplation of a transaction at some point in the future.
Click here to view Value StratecutionTM diagram
The Veracap Investor DatabaseTM is an anonymous database of individuals and family enterprises that have built and run successful businesses, and that are looking to acquire or take an equity position in Canadian private companies, typically in the range of $1 million to $10 million per investment. These individuals bring both capital and a proven record of business success to investments that meet their criteria. Users of this website can search the database or apply be profiled as an investor.
