What you need to sell your business
At Linton Howard, we know what is required to help you sell your business. We know why businesses fail to find buyers at a price that is satisfactory to them.
We know what makes businesses attractive to acquirers. We know the common points of failure during initial review, preliminary due diligence and detailed due diligence. We understand the essence of sale negotiations. We know all of the components required for a successful sale of your business.
You need:
- To plan well in advance
- A clean corporate and business structure
- A realistic asking price
- Succession and continuity plans
- To make it easy for a buyer to take over
As a minimum you require:
- Easy to understand historical financials – preferably audited
- Robust 3 way 3 year forward financial model – Profit and Loss, Balance Sheet, Cash Flow
- Simple to understand shareholding/corporate/business structure
- Demonstration of meeting all external compliance requirements
- Simple to understand shareholding/corporate/business structure
- All contracts formalised and available
- Very well documented systems and processes
Risk identification and mitigation plans
Linton Howard assists companies create/improve each of the above, both in the design and execution then document these into a compelling and professional Sale Memorandum.
Exit diagnostics
Linton Howard has created a simple but powerful 80 question diagnostic that gives you an ‘exit ready’ score for your business. The diagnostic covers all of the areas that a serious buyer is concerned about, and highlights those aspects that need further work to achieve a successful sale at the highest valuation.
One size never fits all, and in every case the diagnostic will be tailored to the individual circumstances of your business and your industry.
The diagnostic covers each of the following areas:
- Governance, Business Plan/Strategy, Management, Financials, Operations, Systems and Technology, Sales and Marketing, and Risk Management.
- On completion of the diagnostic we give you a series of actionable recommendations to begin the process of becoming exit ready.
Investor packs
We see many businesses that have spent a great deal of money preparing a good looking Sale Memorandum that fails to achieve a sale at the desired price.
For a successful sale you need an Sale Memorandum that is more than just attractively presented – you need to have real substance. You need to evidence or substantiate your claims.
Your Sale Memorandum needs to be aligned to what acquirers want to hear. The description of your business needs to be congruent with where the business needs to be. You also need compelling business plans with the right content and level of detail, rather than being aspirational and unrealistic.
How Linton Howard helps
Linton Howard works with you across those areas of the business that need assistance, to ensure the best valuation for your capital raising.
We can assist you in a number of additional ways.
- Developing strong strategy and commercialisation documentation.
- Creating appropriate governance structures and documents
- Oversee the preparation of high quality sale material
- Guide/coordinate cost-effective engagements with professional entities
- Develop compelling sales funnel / pipeline documentation
- Ensuring claimed core processes and capabilities can be fully evidenced
- Development of high quality and compelling financial statements and projections
- Develop a compelling initial ‘request for offers’ document
- Support negotiation of sale agreement.