And in the meantime, here are 3 quick tips, to prepare you a little better, for the big step that is the acquisition.
It’s all in the numbers, so make sure yours are attractive
Make sure your financials are sound and pretty. If you have a competent finance department, get them to do the prep. A good, consistent record of financial ins and outs will give potential buyers great insight into your business’s health.
And if there are any fiscal skeletons in those closets, be honest, disclose them, and work to rid them with open communication.
Show them what your business can do
If you’re planning to sell, it’s always a great idea to make your business’s profitability look maximized and optimized. Do all you can to develop your key performance indicators (KPIs) and build a consistent reporting structure on the movements and business decisions that show value and tangible profit.
Due diligence is key
In addition to any financial skeletons prospective acquirers will do a deep dive on your revenue to determine how sustainable the cash flows are in the future. They’re a part of your due diligence that can mean a smooth acquisition or a rough one.
Business buyers will also review all contracts with suppliers, employees anyone with whom you do business. They are looking for items that may come back to haunt them after a deal is completed so be sure you are diligence-ready from top to bottom.
As with everything in business, it’s good to know the numbers, and simply be prepared. These are just a few top tips to set you on the path to preparing better for the sale that’s coming – whether it’s in a year or further in the future. At Destined, we’ve been through this process selling our own businesses, so we know that it can be a somewhat stressful time. But like we said, it can also be a very exciting time – watching something you’ve built become an entity on its own. So, not to worry– Destined is on this journey with you, because we’re your strategic business consultants, and your journey is our journey.