Methods for valuing a company are compared and the planning, negotiation and execution of its sale are described.
The course also highlights the principal points to be negotiated in a Sale & Purchase Agreement and explains the meaning and effect of representations, warranties and indemnities.
Course Notes, Slides and Exercises
Participants will receive a booklet containing copies of 14 slides and 71 pages of very comprehensive notes. Each slide will cover a number of related topics and the accompanying notes will support the content of the course to be delivered by the trainer. During the course of the day, participants will undertake one or two exercises (problems) in groups of two or three (depending on the size of the class) which will involve considering what advice should be given to a client in particular circumstances. Participants will discuss the exercise with each other and then with the trainer and will receive a written answer to the problem.
You have just concluded a meeting with a multinational conglomerate with an immediate requirement for funds to invest in its core business. It has been suggested that a subsidiary be sold. You give preliminary advice before commencing the sale process.
Your client has agreed to sell his company to an AIM listed company and you are negotiating to fix the price at a multiple of 12 times after tax earnings against an initial offer of 8. Another buyer then shows interest at a price equivalent to multiple of 18. You advise the client on how to conduct the negotiations.