Develop and implement a plan to refine the operation so it produces maximum profits and structure the business in a way that ownership can be transferred with minimum impact on operations and profitability. Our comprehensive, proven process addresses financial and non-financial aspects of value to maximize your outcome.
Here’s a checklist of what you need to do and understand to prepare your business for divestment.
The first step in preparing your business for sale is to get the books up to date so there is a clear picture of your operation, with supporting facts and projections. In addition to your actual accounts, speak with your LINK Business Advisor about preparing an assessment, including normalized EBITDA, projections, and comparable sales.
Review leased and financed assets to see whether they are better converted into fully-owned assets. In an ideal world, business owners should plan for the sale of their business from day one and work through a process of ‘grooming’ it to achieve optimal value.
Some accounting policies are tax driven, resulting in conservative profit recognition. Whereas others are earnings driven, seeking to maximize profit. Changing your accounting policies to conform to those of your industry may increase the market value of your business.
Most buyers expect the seller to continue working in the business for a training period. Some buyer prefers a longer period, which can be negotiated. In some cases, a business owner may wish to stay involved in the business indefinitely, whether active or as a Board member.
Our LINK Business Advisors can provide advice on these and other aspects as part of an exit planning and valuation maximization project.
LINK assists you with the preparation of the following information, in association with your advisors, to ensure the information is presented in the appropriate manner.
