Even a car usually undergoes some pre-sale preparation, at least washed, vacuumed, eliminated some various imperfections that can confuse the buyer. However sometimes I face owners misunderstanding why to prepare the company for sale. The main reason is misunderstanding of the owners the important aspects and points of the business that investors pay attention to. So what do we mean by pre-sales preparation of a business? This means that owners must put things in order in all corners (even the darkest) of his business, clearly understand why the investor should want to buy, be able to show all the specifics and assets of the business, be able to quickly and efficiently respond to all questions incl. sensitive. As a rule, a professional investor engages auditors, consultants, lawyers, own services for a deep examination of the acquired business, so you should not rely on a miracle that the transaction will go smoothly without proper preparation.
Let's take a closer look at this issue: i. Business structure and reputation: 1. A transparent, reasonable business structure 2. Outsourcing of any main functions 3. External news background and business reputation 4. Tax, state organs and ligitation risks
ii. Finance: 1. Business stability with adequate revenues, profits and growth 2. Financial stability, level of debt 3. Deferred or off-balance liabilities 4. Financial statements quality
iii. Systems: 1. Management systems, business processes and business intelligence 2. Payment system and staff motivation 4. Physical, information, economic security
iv. Assets: 1. Volume of non-target 2. Key assets 3. Condition of fixed assets 4. Obsolete stocks, equipment
v. Team: 1.Team willingness to support the change and cooperation 2. Successful, competent team