If you’re thinking of selling or taking a step back from the day to day running of your business; follow these tips to ensure you are Exit-ready.
The Exit-Ready Checklist
1. A fully functioning management team that’s used to making key decisions.
2. A clear strategy and Critical Success Factors in place that the new buyer or management team can work with.
3. A strong and loyal customer base so your new buyer acquires an order book as well as a business.
4. A track record of success to demonstrate to your buyer the pedigree of your business.
5. Strong financial projections that give confidence in the future, and are soundly based.
6. A robust set of processes and procedures to ensure the business can function without dependence on particular key personnel.
7. Differentiators in product or service that give confidence in the financial projections.
8. A clear brand and identity that’s separate to the owner, because your buyer is acquiring an entity with its own personality.
9. No baggage, because your buyer will want to get on with running the business and not spending time solving legacy issues.
10.Simplicity – your business must be easy to run from day 1.
All of these factors will help you achieve better value and should be addressed well before you embark on the sale process. If you’d like help and advice on preparing for a sale, or on specific issues relating, for example to, selling to family members or handing over via succession planning, please contact us with your enquiries.
We are not financial advisers or tax specialists so in the event that you need support from professionally qualified advisors we can put you in touch with our accredited associates or local organisations that can help.