Exit readiness
Preparing your business for sale: more value when you sell
Planning to sell or hand over your company in the next few years? Then now is the time to make it ready for sale. We map out what buyers will want to see and implement the improvements together with your team, so you sell at a better price and with less risk.
How do I make my business ready for sale?
A buyer pays for future results and for certainty. The better you can demonstrate that certainty, the higher the price and the fewer warranties and earn-outs you need to accept. A business that is ready for sale has five things in order:
- Reliable numbers. Monthly reporting, a well-founded forecast and a normalised EBITDA a buyer can verify.
- Less dependence on the owner. Customer relationships, knowledge and decisions do not rest with you alone.
- A strong management team that can run the business independently, including after you leave.
- A spread of risk across customers, suppliers and markets.
- A tidy structure. Legally, fiscally and contractually clear, so due diligence brings no surprises.
What is my business worth?
The value of your business depends on expected cash flows and on the risk a buyer takes on. In practice a buyer applies a multiple to sustainable, normalised earnings, adjusted for debt, working capital and dependencies.
We produce an indicative valuation and show which value drivers matter most in your situation. That makes it clear straight away where the improvements should focus. If a formal valuation is required, we bring in a registered valuer from our network.
Our approach: from baseline to sale
Exit-readiness baseline
How ready for sale is your company today? We assess numbers, organisation, dependencies and structure, and set an indicative value.
Value-driver improvement plan
A concrete plan with the measures that add the most value, in the order a buyer will look at them.
Implementation with your team
We carry out the improvements hands-on: reporting, management team, contracts, processes. Where needed as interim manager.
Preparing the sale
Information memorandum, data room and vendor due diligence, together with M&A advisers, lawyers and tax advisers from our network.
Why starting early pays off
Buyers pay for proven results, not promises. Improvements that have shown up in the numbers for two or three years count in full towards the price. Owners who only start once a buyer is at the table often have to accept a lower price or receive part of the price later. Ideally, start two to three years before the intended sale.
Frequently asked questions
How long does it take to make a business ready for sale?
It depends on the starting point. A baseline assessment takes a few weeks. The improvements themselves usually need one to three years to show convincingly in the numbers.
Does Accellium also support the sale itself?
Yes. We support the process through to the transaction, working with M&A advisers, lawyers and tax advisers from our network. You keep one point of contact.
Do my staff need to know I am preparing the business for sale?
Not necessarily. Most improvements are simply good business practice. We agree with you who to involve and when; the management team usually plays a key role.
What if I decide not to sell after all?
Then you have a healthier, better-run and more profitable company. Every step towards exit readiness also improves your business.
Contact
Let’s get acquainted
Is your business facing a decisive moment, or would you rather stay ahead of one? Call or email Marcus directly for a confidential, no-obligation conversation.
Marcus Preijde, partner