Getting ready to exit
Build a business someone wants to buy.
Buyers pay for profit they can believe and a business that runs without its owner. Putting that right usually takes a year or two, so the time to start is well before you plan to sell.
Ten things buyers check
Most of these can be improved. Few can be fixed in the six months before a sale.
Profit you can prove
The headline figure, with every adjustment explained and backed up.
Monthly management accounts
Produced on time, and they agree with the year-end accounts.
How much it depends on you
Who wins the work, holds the relationships and makes the decisions.
Processes that are written down
The business runs the same way when people change.
Customer concentration
How much of your revenue comes from your biggest few customers.
Repeat and recurring revenue
How predictable next year looks.
Margins by product and customer
Which ones make money, and whether your prices have kept up.
Cash
Working capital, how quickly customers pay and what it takes to run the business day to day.
A team that stays
Key people, their contracts and who would step up.
Tidy paperwork
Contracts, leases, intellectual property, compliance and any disputes.
How I help
I work with owners to get these in order, usually one to two years before a sale. That can be as a fractional finance director, or alongside your accountant and your team.
- An honest view of how a buyer would see the business today
- A plan that tackles the gaps hurting value most
- Management accounts and forecasts that hold up under a buyer's checks
- Less reliance on you, through better processes and a stronger team
- Marketing and pricing that grow profit, not just turnover
I don't find buyers or run the sale. That's a job for a corporate finance adviser or broker, and I'm happy to work alongside yours.
Buying a business?
If you're looking to buy a smaller business and bolt it on, I can help check the numbers, test the assumptions behind the price and plan how the two will fit together afterwards. I've been involved in acquisitions and seen what makes integration go well, and what makes it painful.
Thinking about selling in the next few years?
The earlier we look, the more there is to work with. Get in touch and we'll start with where the business stands today.