Planning and preparation are key to a successful exit plan. Following the steps below will ensure you maximize the overall results of a process and increase the likelihood of achieving your desired outcome.
Engage with an M&A advisor early – 12 to 24+ months out
An M&A advisor will help you understand the value of your business and educate you on the value drivers, potential buyers, the M&A market, and a transaction process.
Get financials in order
Messy financials create doubt. Valuations will deteriorate and interest from potential buyers will dissipate if financials can’t readily validate the performance of the business.
Formalize a monthly reporting and financial close process if one is not in place
Create a forecast
Have a quality-of-earnings analysis done prior to seeking buyers. For more information on Q-of-E analyses, contact SDCO.
Build a strong management team
A buyer wants to know that once you hand over the keys, someone will still be around to run the show. A strong management team is a value adder.
Gather diligence materials
An M&A advisor can provide a sample diligence request list. It is never too early to start gathering this information in order to identify potential issues and speed the sale process later.
Put a full team in place consisting of an M&A advisor, accounting and tax advisors, estate planners, wealth management, and a transaction attorney
Generating proceeds from the sale is the first step. The full team will help you keep as much of the proceeds as possible, grow it into the future so you can maintain your lifestyle and transfer it efficiently to your heirs.
If your strategic plans include the possibility of a transaction, learn more about our experience in advising clients through the course of a merger or acquisition, by contacting Peter Lieberman at 412.697.5364 or [email protected].
Schneider Downs Corporate Finance, LP is a registered broker/dealer. Member FINRA/SIPC
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.