Any documents containing descriptions of the goals and objectives that the management team has set for the business, and details about how those goals and objectives intend to be achieved.
While most business owners and CEOs have at least a rough idea of where they want to take their business, having a detailed and robust business plan and strategy is far more involved. Such a plan typically includes the following features:
Having a robust business plan results in a range of benefits including:
Investor groups in any transaction can be divided into 2 groups:
Both these groups will be interested in understanding how the existing management team plans to operate the business in the future.
For the second group, this process enables them to compare and contrast their strategy with that of the existing management team. It also provides them with insight into the quality of the existing management team and helps them assess whether some of that team should be offered a role within the new organization.
For the first group, this process is crucial as not only are they investing into the business as it currently exists but they are also buying into the strategy of the existing management team. This group will be keen to query all aspects of the plan including: