Deal Readiness Assessment Report

Business Readiness Assessment 

We interview the Owners/CEO and senior management (optional) with 150 questions in up to 20 functional areas, including HR, IT, Legal, Financial and Operations, to name a few.  We then combine this information with financial analysis to build the Deal Readiness Assessment Report.

With this +60 page report, we establish a clear definition of the current business health so that those shortcomings can be improved before launching the sales process.

Consider the following:

                        Multiple Shareholder Comparison

• Multiple Shareholder Comparison
  For businesses with multiple shareholders, separate interview sessions are held. Then the evaluations are compared and a consolidated corporate overview is developed.
• Review the sales/marketing history
  A significant portion of the company’s value could be on the customer base. Evaluate the sales history and how the company was able to get to where the business is now. Make sure that the sales/marketing strategy is documented going forward.
  
• Evaluate the leadership team
  Having a strong management team with clear expectations and good accountability within the leadership team is essential to operate sustainably. Having a carefully selected and balanced team with the requisite skills adds significant value to an enterprise.
• Identify, analyze and mitigate risks
  The business needs to be presented as a stable enterprise to potential acquirers. Identifying and mitigating risks such as revenue concentration, obsolete stock, litigation, doubtful debt, etc. is essential to substantiate earnings.
• Review human resources policies and procedures
  Often labor laws vary from state to state. Assure that the company is in compliance with these laws and that the policies and procedures are compliant with current standards. Employment issues and mishaps can easily undermine a deal.
• Evaluate technology
  IT will play a very important role in the sales process, so the IT infrastructure and application systems that are in place have to be analyzed. Likewise, the administrative and communications systems must be up to current standards.
• Streamline the corporate structure
  The business is more valuable to an acquirer if it is already running successfully and profitably without heavy involvement from the Owner/CEO. If not already in place, consider having a board with several non-executive members, which is a very cost-effective way of adding significant management horsepower.
• Formalize agreements with customers, staff, and suppliers
  Make sure that agreements are current and valid. It could be a deal breaker if agreements are not current and perhaps only verbal. Well documented agreements reflect good, sound management practices. 

Taking a consulting approach, we conduct interviews, analyze operations and review policies and procedures.  We then combine this information with financial analysis to build the Business Operations/Risk Assessment Report.  Following the release of the Assessment Report, we help develop an agenda for creating value before launching the sales process.