How to prepare for sale?

To maximise the value of your business on exit it’s imperative that you commence strategic planning work at least 18 months to 2 years out from sale.

Key elements that need to be considered in your strategic plan include:

Key Business Drivers

Understand the key drivers of the business. 

Identify which of the drivers will have the greatest impact on the business valuation.

Competitive Environment

How are your products or services positioned in the market?

Who are your direct and indirect competitors?

How does your pricing structure compare to the competition?

Potential Buyers

Understand potential companies that could acquire your business.

What would they consider the most important value drivers?

Global Mergers & Acquisitions

Review global activity within your industry and understand the trends and key information.

Our 6-step guide to maximising value…

Key activities to undertake when preparing your exit plan.

Revenue & Margin Analysis

Understand which customers, products and markets generate the most revenue and the have the most attractive margins. This will drive improvements in performance, making your business more profitable and appeal more attractive to buyers.

Growth Plan & Scenario Assessment

Build a financial model that considers multiple scenarios to demonstrate how further profitable growth can be achieved to maximise your future sale value.

Overheads & Profitability

Analyse overheads and reduce fixed costs to enhance profit margins and increase the value of your business.

People

Create incentives for critical employees to remain in the business post the sale, to minimise risk for the buyer and to ensure the business valuation is defensible.

Financial Governance and Reference Books & Controls

Make sure that the business’ financial statements and accounting information is accurate. This will elicit compliance, assurance in numbers and transparency. Buyers like it when business operations run smoothly and efficiently so it is important to document business processes, review controls and update systems to improve the value and desirability of your business.

Data & Documentation

Ensure documentation required for the sale process is readily accessible to allow buyers to complete the due diligence quickly and efficiently. This will reduce risk for the buyer and maximising value for you.