If it is determined that the next step is to exit via sale, T&M works closely with a business' ownership to prepare and package the business for sale. This step combines the final conclusions from the Business Diagnostics Review with a comprehensive internal Due Diligence Analysis, reviewing all possible aspects of concern for the business (legal, business and strategic), as well as a Value Enhancement Recommendation, detailing suggested value enhancing opportunities and initiatives.
This may include the following core activities:
- Determining the appropriate Exit Strategy
- Updating the Recasting of Financial Statements
- Making available records and documents for Due Diligence
- Contract Review and modification (equipment and real estate leases, suppliers, customers and employees)
- Defining Likely Acquirers and their characteristics
- Identifying and mitigating adverse Key Dependencies
- Status and mitigating actions related to pending litigation, Environmental Issues, etc.
- Identifying and determining appropriate Personnel Changes related to key employees
- Systemizing Operations through documentation to reduce the perception that "the owner is the business"
- Specifying the desired Transaction Structure
- Developing a realistic Growth Plan as a road map to expansion opportunities that a new owner could exploit
- Defining a Transition/Employment Period and training plan
- Assembling an owner's Team of Professionals including an experienced transactional attorney and CPA
At the end of this step, T&M will deliver a comprehensive Offering Memorandum that highlights, organizes, and documents the key features and attributes of the business ï¿½ designed to put all critical information at the fingertips of prospective purchasers.
The Memorandum specifies the business' desired transactional structure, and clearly articulates what the business has established in terms of differentiation, name recognition, market niche, competition, supplier relationships, operations and production systems, management, personnel, distribution channels, customer concentration and loyalty and numerous other intangibles.
This saves valuable time and streamlines the buying process, ensuring that the business only attracts the most qualified prospective buyers.