Being Sale Ready is the best way to maximize the value of your business.
Strategic buyers will pay top dollar for profitable companies with detailed financials, a tenured labour force, efficient processes and quality record keeping. The challenge buyers often face are unprepared businesses leading to unreasonable expectations and a drawn-out, more invasive due diligence process. If the business' disclosure data is unprepared, it could lead to inconclusive analysis forcing the buyer to make assumptions about the business. This can add risk causing a devaluated price, an offer being rescinded or the deal being derailed.
Being Sale Ready helps prepare the due diligence items buyers will want to see in order to validate the acquisition of your business. In addition, it minimizes risks, identifies true earning potential and removes assumptions that can devalue the business. Having all the information that a buyer will require prepared in advance will not only benefit the buyer, but will enable you to focus on running your business instead of hastily hunting for documents. How do we know this is true? Because we’ve done it for many and can do it for you. We have proven time and time again that a Sale Ready business sells for higher value, is more attractive to buyers and sells faster.
Here are some additional areas that Sale Ready can benefit your business.
If you are thinking of selling your business within the next 3 years, it is important to start the discussion now. This doesn’t mean that you need to commit to selling your business or start the sale process. It does mean that you’re becoming educated in the sale process and taking action on the various things that affect your company’s value. Some of the most effective tax strategies can take up to two years to put in place and material issues in the business can take even longer to resolve. Some items, if not addressed, may reduce your business's value and saleability. The benefit of starting the process early is that it will put you in control of selling when you’re ready and for maximum value.
We work with clients 2-3 years in advance of the business' sale. With some owners we speak weekly and sometimes daily. With others it is monthly or quarterly. It all depends on your motivation to maximize value and how optimized your business already is. Our methodology is simple, the more time we have to prepare you and the business for sale, the better we can identify value, tell your story and maximize your result that will allow you to live happily ever after.