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.
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.
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.
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.