Get Your House in Order Before You Attract a Buyer

You’ve put years of graft into building your business. Long days, late nights, endless decisions – it’s more than a business, it’s your legacy.

That’s why, when the time comes to sell, the last thing you want is to see its value slashed – or worse, a deal fall through – simply because you weren’t properly prepared for due diligence.

Think of selling your business like putting your house on the market. A buyer won’t just glance at the paintwork; they’ll look under the floorboards, check the wiring, and scrutinise the surveyor’s report. If you haven’t fixed the cracks, they’ll either walk away or knock hundreds of thousands off the valuation.

And the level of scrutiny depends on who’s buying. This falls into one of the following:

1. Trade Buyers (including buy-and-build groups) are looking for market share, products, or talent – they’ll want to see evidence of the sustainable profit of your business and whether it is easy to integrate.
2. Management Buyouts (MBOs) tend to rely on funding, which means lenders will go over your financials with a fine-tooth comb.
3. Employee Ownership Trusts (EOTs) are usually a lighter touch , however, detailed reverse due diligence is advisable to prove the business is solid enough for employees to take over.
4. Private Equity is the toughest of all: forensic detail, exhaustive checklists, and very tight deadlines. If you’re not prepared, the stress alone can derail your deal – never mind the hit to your valuation.

If you leave this until the last minute, you’ll be drowning in two-week deadline checklists, distracted from running your company, and potentially watching profitability – and value – nosedive. Arrange a chat with James Shand, to prevent this and prepare for a successful exit on your terms.

Successful business sales start with the vfdnet Exit ReadiMap. Typically, 3 years before a business owner wishes to sell we sit with them and complete this diagnostic tool. They then know where the cracks are, in advance of any due diligence requests firing at them. Our team of associate experienced Finance Directors help you fix them, so that when the right buyer comes along, you’re ready. In fact, we often prepare your business as if you’re selling to private equity – because if you’re ready for their level of due diligence, you’re ready for anyone!

The Exit ReadiMap could save you hundreds of thousands in lost valuation – and months of stress.

Don’t let all your hard work go to waste. Let’s get you exit-ready – Book a 30-minute call with James Shand.