Is Your Business Prepared For Sale?
Not every business will sell and not every business will sell for the price you want. If you want a high business valuation you need to be prepared for sale.
Getting a business prepared for sale can take 2 - 3 years. Don't leave your future wealth to the last minute.
Be prepared with the answers before you put your business on the market and know if your business is ready for sale.
How Do You Know If Your Business is Prepared For Sale?
There are three key questions to answer before you put your business on the market:
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Are you likely to sell your business in a reasonable time?
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Is the business likely to attract a premium?
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Is the business ready for the transaction?
By getting detailed answers to these questions before you sell your business will give you the best chance to:
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Make sure the transaction process goes smoothly when you sell your business.
Find out our insights into what it takes to have a business prepared for sale with our whitepaper "Is Your Business Ready For Sale".
Our whitepaper will show you:
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The key risk areas that will derail a sale or reduce your business valuation.
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The likelihood you will attract a premium for your business.
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The opportunities to increase your business valuation and be ready for sale.
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The work required to be ready for a transaction.
Key To A Successful Business Transition
A business is prepared for sale when the business is no longer reliant on the owner - it is a transition from the owner needing to work in the business to the owner being able to work on the business.
It is not just a matter of having your financial statements available and showing great profits so you can get the asking price you want. There are many factors that cover areas such as:
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Sales and marketing to support growth.
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Key person risk.
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Use of technology.
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Financial performance.
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Business strategy
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Intellectual property
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Governance
The key is where the owner no longer is required to operate and manage the business, even though they may still perform those functions. It is about the business being able to replace the owner and being able to afford to have them leave - when they choose.
Exit Value Advisers have developed detailed checklists from the hundreds of business valuations, transactions and consulting advice that we have undertaken.
We have documented the things we find potential buyers want and when they want it so that your can be prepared. Our checklists also help to increase a business valuation when you sell a business.
Being Transaction Ready Helps Sell A Business
Being prepared for sale also includes pre sale questions that come up during the transaction and the the due diligence process. Even for a simple business the transaction itself can involve as much as 100 - 200 man-hours of work.
The Exit Value Advisers review process previews the typical questions asked in a due diligence and provides a list of the likely documents required. We prepare you for the process that a broker or M&A adviser will undertake.
Often a sale can fall over in due diligence, which by its design is a process of risk reduction for the buyer. It is by design, an adversarial process as the buyer is trying to uncover any issue that may result in the deal being cancelled or that exposes the buyer to unacceptable risk.
By going through a virtual due diligence process we find the areas that your business may be deficient and allow you to be ready.
