At Certum Business Consulting, we believe that the planning and preparation of a business exit is just as important as the planning and preparation of an acquisition or business start up, because planning and preparing appropriately for such an exit maximises the value of the business to the owner. Plus, ensuring that the exit process is as smooth as possible delivers additional benefits in the form of minimal resource and time consumption. That’s why a business owner should prepare the business well ahead (12 and 24 months) of the planned exit.
Questions which should be addressed include:
- is the business reliant on the owner in terms of management and revenue generation,
- does the balance sheet include non-operating assets/liabilities,
- should products/business areas/subsidiaries be discontinued or carved out,
- does the business have excess working capital,
- are the financials understandable and properly documented,
- does the business have a credible and well-documented business plan,
- does the business rely on one or few customers,
- can income streams be further diversified,
- are business processes documented and systemised,
- does the business have an appropriate legal and tax structure
Certum Business Consulting advises clients in preparing businesses for sale.