Getting Your Business Ready for Sale

Getting your business ready for sale is a process designed to assess, enhance, and protect that enhanced valuation of the business.
Valuation of the business will reflect the financial performance of the business, the operational structure of the business, and the results of a due diligence analysis. Reviewing and addressing all of these elements can result in significant, measurable, valuation enhancement results. Through this process you will:
• Identify specific issues suppressing the valuation of the business
• Address/correct those value suppressing issues
• Identify & improve performance drivers that enhance the valuation of the business
• Identify valuation range for business sale
• Identify potential acquirers
• If appropriate negotiate sale of business
To identify issues suppressing the valuation of the business you first need to know what the strengths and weaknesses of your current position are. In addition to the financial performance management assessment questions you should use a comprehensive due diligence check list. This checklist includes the issues addressed in financial performance management and will also look at and assess:
• The Business Plan, Corporate Structure, and Financing.
• Marketing, Products, Sales, Service
• Human Resources
There are many issues to assess – but once you have assessed them and developed a clear understanding of the strengths and weaknesses of the business, and the opportunities to enhance the value of the business you can begin to systematically address those issues.
Performance Drivers refer to the Key performance indicators (KPIs) that help your organization track what’s important to the operational and financial success of the business. These may include financial metrics, client/customer metrics, sales & marketing metrics, people metrics, and operational metrics as examples. The metrics that are important in your business should be determined in the financial performance management phase of the assessment.
We recommend that the valuation range for your business be calculated by an independent valuation professional. This will provide an independent assessment that is not based on the emotional attachment of the business owner and more likely to attract a successful transaction.
Once you have an independent valuation range you are in a position to begin identifying potential acquirers.
Preparing your Business For Sale is a function of proactively managing your business finances.[/vc_column_text][/vc_column][/vc_row]



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