Search

A Knock on the Door

Updated: Dec 8, 2020

A 'Knock on the Door' can lead to the sale of a company...or not!

An unanticipated expression of interest can lead to the sale of a company.  This interest may not lead anywhere however if the company is not ready for sale.  What is the solution?  Always operate a company as if it is for sale. Know what drives value.Engage an M&A professional to determine market value.Upgrade financials .Track Key Performance Indicators (KPI’s).Create a high-performance management team.Minimize dependencies (customers, vendors, products, people).Clean and organize your facility:Clean out old inventory and unneeded ‘stuff’.Maintain the bathrooms (the spouse will not be enthusiastic about ‘latrines’) If run your company as if it is for sale and someone 'knocks on the door', you will be ready. “Come on in, let’s chat. Would you like a tour?” 

Recent Posts

See All

Prepping a company for sale

1. Make Changes which will increase the value of your company: Create the culture of growth that buyers seek. Create written procedures for the most common processes. Know and track your Key Performan

A Buyer's View of Financial Statements

When a buyer considers the purchase of a company, the most important aspect is the financial health of the company as shown on the P&L and Balance Sheet as well as the tax returns. While the profitabi

Prerequisites to Selling a Company

1. The internal financials must be impeccable A prospective buyer will always start with the financials and tax returns. The financials must correlate to the tax returns. Inventory must be properly ac