Despite years of experience, Domain Associates have never encountered a business owner who did not want their business to reach its full potential. Quite simply, clients want their businesses to thrive and grow.
At every stage of business growth, capacity must increase to carry that growth sustainably. Domain Associates transition services develop strategies for the expansion of a business ‘foundation’ or capacity. At all levels of your organization capacity must increase, and this can be by organic growth or acquisition growth.
Mergers and acquisitions
It is widely quoted that less than 50% of acquisitions deliver the expected benefits to the acquirer. Accordingly, if your client's business is considering an acquisition strategy, it is important that they obtain expert, impartial advice early on in the process. Domain Associates offer advice to business stakeholders looking to grow by acquisition, including assistance with:
- formulation of an acquisition strategy;
- target identification;
- approaching potential targets;
- negotiating the terms of the acquisition;
- assisting legal counsel in preparing legal documentation;
- facilitating introductions to our networks and contacts.
As members of Merger & Acquisition Professionals, we take a hands-on approach to assist businesses source, analyse and negotiate strategic mergers and acquisitions. We also offer clients expertise in performing valuations, undertaking due diligence and offering taxation advice so you know they'll be getting the best price and a fair deal.
Due diligence has been described as an investigation to find skeletons in the closet - big negative surprises. An acquisition target must be analysed to ensure it fulfills the overarching strategy of the acquirer. Even if no skeletons are found, acquisition can still destroy a good business, so taking a strategic view early is vitally important. Timing is also a critical component that can cause a potentially aligned business to erode rather than add to its value.
In addition to the typical investigation, our due diligence transition service identifies the parts of a business that, when integrated with the client’s business, will continue to add value. With Domain Associates’ expert advice and guidance, our client’s business and the new acquisition will fit together and enhance success.Corporate finance
Development capital/Cash out
At some point a client may consider raising external finance. This could be to fund growth or expansion plans, or to allow shareholders to exit. Domain Associates will assess a client’s financial needs and investigate sources of new finance, including assistance with:
- raising and structuring bank and non-bank debt; and
- raising and structuring private equity/venture capital.
Applications for Finance
We are often involved in sourcing debt finance for clients. In order to secure the finance on reasonable terms and conditions, it is critical that a client is adequately presented to the financier. Our application for finance support document provides the opportunity to do this. We work with specialist resources to offer you this service under your strategic plan.
Our advisors have extensive experience in evaluating the most appropriate way to fund a business and our network of financiers, business angels, domestic and international venture capital funds can provide necessary capital.
Strategic financial analysis - growth
Growing a business beyond its current level can be a complex process. Whether clients are looking to expand overseas or get investors in, having a clear understanding of the health of their business is critical. Domain Associates' reporting packages include a ‘dashboard' of key indicators so your clients' management teams can make the right decisions at the right times. These key indicators are always financial, but can also include non-financial aspects, which examine things like your client base and internal processes.
When we combine the stakeholders knowledge of their business with our specialised skills we can help to create that important competitive edge. Our approach provides clients with problem solving techniques they can use on an ongoing basis. The services we provide are focused on:
- the reduction or elimination of wasteful practices;
- increasing the efficiency and effectiveness of your business;
- maximising business capacity;
- clarity of direction and communication;
- ensuring actions are agreed and implemented;
- operational efficiency and control.
We review both manual and computerised systems, report on the adequacy of these systems, and offer recommendations for expansion or improvement. Stock control and costing reviews may form part of the overall systems review, or may be performed separately. Our reviews are practical and focus on minimising waste and maximising effectiveness, capacity and efficiency. With a client’s business running at maximum potential, it will attract more investors and the client will realise better returns.
Governance at the growth phase is heavily focused on building capacity, within a management team and within a business.
Often the culture of the board, management or even the team can limit the next phase of businesses development. This is a stage where a change in board members and/or CEO may be needed. Domain Associates will give your clients the confidence to know when to act and who to change or inject into the mix. By keeping the strategy on-point in this way, clients steer their businesses towards greater value in the future.