With an audience of over 60 top executives and professionals at the Union League in Philadelphia, Steve Raymond, Managing Director at The DAK Group, delivered an energizing presentation on the ’12 Critical Steps to Prepare Your Business for Sale.’
Attendees of the Business Leaders Forum walked away with powerful insights, including:
Selling Your Business? Start Preparing Now to Maximize Value
You’ve invested years—possibly decades—building a successful business. When the time comes to sell, you want the greatest possible value for all your hard work. How well you prepare for the sale will make all the difference.
🔍 Buyers Look for Specific Value Drivers
Whether selling to a financial or strategic buyer, management team, or transferring ownership to the next generation, focusing on key factors will materially impact your company’s value.
📅 Start Early: Be Ready to Sell at All Times
Waiting until you’re ready to sell to optimize efficiencies can lead to lost opportunities. Prepare your business now to increase earnings, maximize profitability, and ensure you have a strong, replaceable management team.
🚀 Communicate Your Vision
Buyers purchase potential, not the past. Develop a compelling, defensible narrative that highlights your company’s future growth opportunities.
💡 Know Your Business Value & Value Drivers
Understand your business from a buyer’s perspective. Factors like synergies, specific goals, and even the reputation of your business can significantly impact perceived value.
🔎 Avoid Surprises with Self-Due Diligence
Conduct your own due diligence before going to market. Identifying and addressing potential issues early will prevent surprises that could derail a deal.
📈 Mitigate Risks: Customer, Supplier, and Employee Dependence
Diversify your customer and supplier base and lock in key employees to reduce dependency risks. Contracts, agreements, and non-compete clauses can add stability.
📊 Prepare Supportable Financials
Reliable, accurate, and organized financial statements are critical. Strong financial controls and supportable projections will instill confidence in potential buyers.
💰 Optimize Working Capital
Manage your working capital effectively to avoid leaving money on the table. Lower current assets can increase your company’s value.
🧮 Focus on After-Tax Yield
A high sale price is great, but it’s what you keep that counts. Work with advisors to structure a tax-efficient deal.
👥 Assemble Your A-Team of Advisors
Surround yourself with experienced professionals—accounting, tax, legal, and investment banking experts—who can guide you through the sale process.
⚠️ Address Potential Deal-Killers Early
Environmental, tax, legal, or intellectual property issues can disrupt a transaction. Proactively manage these challenges to avoid surprises.
🎯 Stay Focused on Running Your Business
A successful sale depends on maintaining business performance. Let your advisors handle the sale process so you can keep your business on track.
The bottom line? The sooner you start preparing, the greater your chances of maximizing value when the time is right.
For more information contact Steve Raymond.
