Case studies
Equipping a founder-led consultancy for exit and valuation discussions
The Challenge
Following an unsolicited acquisition approach, the owner of a specialist consultancy wanted an independent assessment of key financial drivers likely to shape valuation in any transaction.
With no in-house corporate finance resource, the founder sought experienced and pragmatic external input to provide credible, evidence-based valuation guidance, identify potential negotiation risks and highlight areas where further development could enhance future value.
The Solution
Garwood was engaged to conduct a short valuation and negotiation preparation exercise.
Drawing on our experience advising founder-led consultancies on transactions, we provided an objective view of:
- Normalised EBITDA and underlying earnings quality
- Net working capital requirements and excess cash position
- Valuation multiplier range and key factors likely to influence it
In addition to quantifying these valuation elements, we worked with the founder to identify the business’s multiple enhancers – the strengths that would support a higher valuation – as well as the potential multiple detractors that might raise buyer concerns or impact negotiation leverage.
Using our Value Builder framework to structure this analysis, we helped the founder see where the business was already well-positioned, and where further development could enhance value in future discussions or exit preparation.
The Result
The founder gained a concise, actionable view of the business’s current valuation drivers, supported by structured insight into factors likely to influence buyer perception and negotiation outcomes.
The multiple enhancers and detractors lens provided a practical, forward-looking guide to shaping both immediate deal strategy and longer-term value-building priorities – supporting a more robust and confident position for any future exit.
(As with many of our pre-deal engagements, client details need to remain confidential. However, if you’d like to learn more about this project, please let us know and we can arrange for you to speak with the founder.)
