Blog – March 2018
It is pretty much a truism that a well-run business is a saleable business but it is often the case that owner-mangers doggedly stick to processes that may well work for them but that are not particularly helpful from an external viewpoint.
For example, it may be that deferred income is not accounted for (where multi-month – or even multi-year – contracts are being billed in advance). It may be that no single contracts schedule exists, that the sales pipeline is not formally recorded or even that management accounts are not produced monthly.
In a sale situation the prospective buyer will not only want these types of information to be readily available, but they will want them to be accurate and up-to-date. Furthermore, as one goes through the due diligence process such information will need to be updated regularly. If you cannot easily supply such things in a timely manner, it will reflect negatively on the business. Not only that, but it will make your life considerably more difficult during what is always a stressful process.
If you are considering a sale, we offer exit-readiness services tailored to assess your business and advise on what needs to be done to get it in the best shape possible prior to a sale. We are great believers in being truly ready – not just diving in and fire-fighting problems along the way. Whilst you may be able to muddle through – it will certainly affect the value you achieve and might well scupper the entire deal!