If you are looking to sell your business, the more clearly you can describe your value proposition and present supporting information in the business sale process, the more chance you have of driving business value.
Remember, for a business person, information can reduce risk.
You’re not going to have a confident purchaser willing to bid up strongly on your business if you don’t have solid, robust and transparent information to support the performance of the business.
When a purchaser does due diligence on a business, among other things they’re really looking to:
- confirm the veracity of the Business Maintainable Earnings
- confirm the risks around shocks and fluctuations in financial and business performance
- identify opportunities in the business
- understand how the business ticks – what makes it do what it does
- understand the solidity of the business model i.e. the management systems, the people, the customers, the contracts, the products and services, the plant and equipment, and the supplier relationships.
We have created the following cheat sheet as a guide to the key pieces of information you need to share in a sale process.
This information should be summarised into a professional document that provides a credible commentary on the performance, track record and future prospects of the business.
It’s also very important to be sure of what to share, how much detail to share, and what to disclose and not disclose to an interested party and when.
If you need advice on this and help preparing professional marketing materials for your business sale, contact the team at JPAbusiness on 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion.
