Prep for Sale

Considering Selling Your Business?

Know Yourself First!

Properly preparing for an exit-transaction requires clear goals for life after the deal closes. How much do you want for your business? What can you get for your business today? How big is the gap between what you have and what you want? And most importantly, what are you willing to do to bridge that gap?

The answers to these questions determine your timeline and prep-for-sale plan:

Sell Now: 1 Year Timeline

Your business is ready for sale – it is performing comparably to its peers with no major challenges, independent of you. Or, you want to exit in less than one year, regardless of terms. In this case, your next step is a sell-side M&A process.

Read More About Sell-Side M&A
Optimal Sale: 3 Year Timeline

You want to get the most you can for your business without radical changes to its business model. Or, you are an essential part of running your business and need to institutionalize key aspects of your leadership. In this case, implement a prep-for-sale plan.

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Exit At Next Level: 7 Year Timeline

You run a $10 million business, but you want to sell a $50 million business. Your current business is the  starting point from which you can reach a higher peak. To do so, you will need to explore one or more of the options to transform your business — buy, sell, or build.

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What Is An Optimal Exit?

A business that is ready for an optimal sale will show Key Performance Indicators (KPIs) to be at least comparable to the market averages exhibited by its peers. The business is able to thrive on auto-pilot, without its owner actively managing activities. And finally, a business ready for an optimal sale has actively mitigated any red flags that may put off buyers. Such preparation will generate multiple benefits, including:

Best Possible Valuation

When KPIs meet market averages, the business will earn at least a market-level exit value.

Limited Deal Risk

Without lagging KPIs, buyers are less likely to get hung up on the small matters and prolong the process.

Smooth Due Diligence

Without lurking issues, a rapid and transparent due diligence process will accelerate time to close.

Choice of Buyer

A well-prepared business is a stronger business that will attract more strategic buyers.

Crossroads Way to Prepare for Sale

Crossroads Capital has developed a prep-for-sale process that helps companies avoid deal pitfalls, while becoming stronger operationally.

1

SELF-ASSESSMENT

Critically evaluate your company’s strengths and weaknesses to detect any issues that can reduce valuation or make buyers walk away. In doing so, you will also discover ways to leverage your strengths.

2

DEPLOY THE EXPERTS

Addressing the issues identified during the self assessment requires a multitude of functional experts to address all value drivers. These include deal professionals and operational experts alike.

3

EXECUTE ON A TIMELINE

Using the help of the expert team assembled in Step 2, draft a plan for implementation. Ensure the plan has a clear and realistic timeline. Evaluate progress regularly and adjust your approach as needed.

Considering Preparing For Sale?

Start by reviewing our Prep-for-Sale flyer. Click below to download and don’t hesitate to get in touch.

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