To help you get ready and make that step here is a checklist of things to consider.
Do you have a documented succession or exit plan (who, what, when)? YES NO
Do you have a documented three year business or strategic plan? YES NO
Can the business operate without you? YES NO
Do you have time to plan your exit (2 - 3 years)? YES NO
Do you have a 3 year financial budget that aligns with your strategic plan? YES NO
Do you have key performance indicators (KPIs) in place that are regularly reported on and actioned? YES NO
Are your KPIs tracking well? YES NO
Do you have professional legal, accounting and banking relationship to support you through the exit process? YES NO
Do you have financial dependency on a few key accounts? YES NO
Occupational Health and Safety records are up to date? YES NO
Can you regularly step away from the business to take holidays? YES NO
One of the first areas a potential buyer will look to value your business is the financials. Do you have robust accounting and financial practices in place?
Do you have full financial accounts for the last three years? YES NO
Are Management accounts that are produced and reviewed monthly? YES NO
There is an asset register with up to date valuations? YES NO
Debtors days outstanding are at acceptable levels? YES NO
Creditor payments are up to date with creditors paid on time? YES NO
Loan payments are current and in line with loan agreements/covenants? YES NO
Bank statements are regularly reconciled? YES NO
There is a budget and cashflow forecast in place? YES NO
Management accounts are produced within 5 working days of month end? YES NO
Debt to Equity is acceptable and has decreased over the last year? YES NO
Liquidity ratio is acceptable? YES NO
Inventory levels and stock turns are acceptable and within industry benchmarks? YES NO
The business has the cashflow to achieve objectives? YES NO
The Accounting Department is fully staffed and operates efficiently? YES NO
Gross Margins have increased over the last three years? YES NO
Net Profit has increased over the last three years? YES NO
How smoothly does your business run? Buyers want a business that has efficient, effective and economical operations.
Do you have documented systems and processes for all key business functions? YES NO
Do you have a documented organisational chart with clear reporting lines and responsibilities? YES NO
Do you have key performance indicators (KPIs) in place for all key roles and are they regularly reported on and actioned? YES NO
Do you have documented job descriptions for all positions? YES NO
Do you have regular team meetings and one-on-ones with direct reports? YES NO
Is your IT infrastructure robust and fit for purpose? YES NO
Is there an IT disaster recovery plan in place? YES NO
Are all legal and regulatory compliance requirements up to date? YES NO
Are your facilities fit for purpose, in good repair and present well? YES NO
Do you have contingency plans for key staff loss? YES NO
Are customer complaints resolved quickly and satisfactorily? YES NO
Are all staff appropriately trained and is there a training plan in place? YES NO
Do staff morale and company culture promote productivity? YES NO
A key component in valuing your business is the power of: Your Brand; Your Positioning; Your Advertising (on and off line); Your understanding of your Target Customer; Your Customer Database.
There is a marketing plan and budget in place? YES NO
Does the business have a strong brand(s)? YES NO
Your brand and company has a strong position in your market? YES NO
There is a clear understanding of the target market and their needs, wants and drivers? YES NO
There is an established website that is kept up to date and is relevant? YES NO
Marketing effectiveness is regularly measured? YES NO
There is an up to date Customer Relationship Management system in place? YES NO
Your customer CRM database is accurate and up to date? YES NO
You have strong market awareness amongst your target market? YES NO
There is an active customer retention programme in place? YES NO
The company regularly reviews & actions its customer feedback/NPS score? YES NO
There are competitor profiles in place? YES NO
Nothing happens until somebody makes a sale
You have a sales forecast and meet it regularly YES NO
Do you track your conversion ratio and meet it regularly? YES NO
There is a sales force in place? YES NO
There is a robust sales process in place? YES NO
The sales force operates as a team and are well trained and competent? YES NO
The sales team regularly achieves sales targets? YES NO
The sales team accurately forecast their revenues? YES NO
The sales team are held accountable for achieving their targets? YES NO
There is a development process in place? YES NO
The sales team is stable and all are performing? YES NO
Measures lead to visibility, leading to accountability and to improved business performance
Key performance metrics are in place to track production/service delivery? YES NO
Production is error free with very low levels of rework? YES NO
Deliveries are on time, in full and in specification?" YES NO
Equipment is well maintained? YES NO
Equipment is fit for purpose or has an obsolete replacement date/cost? YES NO
The production area is well laid out to maximise workflow efficiency? YES NO
There are low levels of waste? YES NO
Somebody is designated responsibility for each area of production? YES NO
The production area is safe with sound occupational health and safety? YES NO
Production processes in place that are communicated & measured? YES NO
There are continuous improvement process in place? YES NO
Staff have the training and equipment they need to increase their productivity? YES NO
With direction comes certainty
Have you identified the type of new owner who would be right for your business? YES NO
Have you produced a targeted list of potential buyers (including competitors)? YES NO
Have you identified the benefits your business would bring to potential buyers? YES NO
Do you have a business broker identified to sell the business for you? YES NO
Do you need help to get your business ready for the transition? YES NO
Please provide your contact details to receive the report
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