Search

Prerequisites to Selling a Company

Updated: Dec 8, 2020

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 accounted for (including “dead inventory”).

2. Ownership must be focused on cash flow, profitability, and growth.

  • A slow or no-growth financial history will suppress the selling price.

3. The market value of equipment must be known (vs. depreciated value).

  • Buyer’s want to know the actual market value of equipment.

  • Use an equipment appraiser if necessary.

4. Dependencies should be minimized.

5. Management staff must be ideal for a new owner.

  • Buyers want to inherit a team that thinks and make good business decisions.

6. Facility must be clean and organized.

  • First impressions are important.

  • Cleanliness must be a company norm.

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

First Impressions Matter

A potential buyer and his spouse are visiting your company for the first time. What will their impression be? The building and its signage are visually satisfactory. There is visitor parking and the a

Follow Us:

What They Say About Us

"I can’t begin to express how grateful we are for your help and guidance with the sale of our business.  You managed to lay out every step we needed to do.  You found us the perfect buyer and held our hands to the very end. When we look back on the whole experience, we realize that it could have been a nightmare without you.  We felt as though you were always by our side to either answer questions or to just calm our nerves.  We would highly recommend you to anyone looking to sell their business. Your experience and knowledge in everything from valuation to marketing to execution of all the little details made all the difference."

Home Services Cleaning Business (Seller)