Strategic Exit Planning.
Sale of a Manufacturing Subsidiary
The Challenge:
Incomplete data and poor sale-readiness
A manufacturing group was preparing to sell one of its subsidiary businesses as part of a wider strategic restructuring.
However, the financials were fragmented, forecasting lacked credibility, and the leadership team had limited experience navigating due diligence and sale preparation.
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The risk of valuation erosion and sale delays was high.
The Approach:
Structuring financials for DD and valuation confidence
I took the lead on structuring the subsidiary’s financial records and building a compelling investment case for prospective buyers.
I implemented a full forecasting model that projected revenue, margin, and cash flow scenarios, supported by defensible assumptions and clean historical data.
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I then prepared a detailed due diligence pack including:
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Three-year historical financials, segmented by product line and client type.
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A five-year forecast model with upside/downside sensitivity analysis.
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Normalisation adjustments to EBITDA for one-off costs.
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Clean balance sheet reconciliations and working capital analysis.
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Supporting narrative to explain key value drivers and risks.
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I also worked alongside legal and tax advisors to align financial disclosures with sale agreements, ensuring a smoother buyer journey.
The Result:
Business sold above target with no due diligence setbacks
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The subsidiary attracted multiple offers and ultimately sold above initial valuation guidance.
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No significant issues were raised during financial due diligence, accelerating the timeline to sale.
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The forecasting model was used by the buyer post-acquisition to evaluate integration opportunities.