Prepare Today for a Future Sale of Your Company

Preparing your company for sale doesn’t have to be an exhausting experience, but can be very critical to a successful transaction in the future. Whether you want to sell in one year or five years, good planning can smooth the process later. We find that planning can be focused in five key areas.


Shareholder Considerations

  • Address succession plans and issues
  • Establish objectives for estate and tax planning purposes
  • Determine how you will retain and compensate key executives


Strategic Considerations

  • Write out a comprehensive growth plan for the business
  • Acquire or divest profitable/unprofitable product lines
  • Book contractual recurring business
  • Reduce customer concentration as much as possible


Financial Considerations

  • Prepare detailed and realistic projections for five years
  • Organize business documents – i.e. financial statements and records
  • Integrate and update information technology systems
  • Review cost structure in order to maximize profitability (without adding undue risk)


Operational Considerations

  • Clean up the workplace, literally and figuratively
  • Make sure that all equipment is in good working order and replace, if needed
  • Don’t avoid unavoidable capital expenditures
  • Make sure facility is fully compliant with all governmental standards – i.e. OSHA


Legal and Human Resource Considerations

  • Organize all patent, trademark and other legal materials
  • Try to settle any major current or pending lawsuits
  • Organize all insurance and employee related documents
  • Formalize HR policies and procedures


Good planning will not only prepare your company for a successful sale in the future, but it can also lead to improvements in your business today which can set the stage for expansion.