Preparing a business for sale – introducing Value Vault
Rockworth’s Value Vault helps company owners look at their business through a buyer’s eyes
Behind every successful company sale is a thorough preparation phase. Putting in the right type of groundwork can yield significant benefits when the transaction process begins in earnest.
A careful analysis of all aspects of the business can help to identify and resolve problems that could otherwise slow down the deal later on. Thinking through commercial and financial issues and checking the quality and accuracy of management information can help transactions to progress smoothly.
Preparation also reduces the risk of unwanted surprises for the buyer, which might prompt them to reduce their offer. In some cases, pre-transaction preparation might even unearth problems that, if left unchecked, could lead to a deal collapsing at the due diligence phase.
Often, pre-transaction preparation ca help to maximise the value of the business and therefore increase the cash returns to shareholders. There may be opportunities to make operational or strategic changes that improve the positioning of the business and allow it to command a higher sale price.
Introducing Value Vault
At Rockworth, we take our sale clients through a structured preparation process before we begin approaching potential buyers. Depending on the company’s circumstances and the ambitions of the shareholders, preparation can last anything from a few months to several years.
But whilst the process may vary, the required mindset remains the same – the business needs to be looked at through the same lens that a potential buyer would use.
To help company owners start to think about their business in this new way, we created Value Vault.
Value Vault is a free online tool that guides users through an introductory questionnaire and checklist about their business, covering aspects including competition, growth strategy, customers and suppliers, management team and financial reporting.
The checklist initially takes 15-30 minutes to complete. Once finished, it is saved on the user’s profile. It can then be revisited and revised, as the user works to address any problem areas.
Please visit Value-Vault.com to try out the checklist.