Are You Ready?

Transaction Preparedness Assessment

Many business owners are surprised to learn preparations for an exit strategy often begins 3 to 5 years before a sale.

Check your sale readiness by answering these 13 simple questions.

My top five customers make up...

More than 40% of total revenue.

Between 20% and 40% of total revenue.

Between 10% and 20% of total revenue.

Less than 10% of total revenue.

If I went on a three-month vacation without access to phone or email, my business would ...

Operate more efficiently and possibly more profitably.

Operate about the same.

Suffer a little, but still operate fine.

Suffer quite a bit.

Business profitability and operations would be devastated.

Which statement is most true concerning your company financials?

Financials are finalized by an in-house bookkeeper.

Financials are finalized by an in-house CPA.

Financials are in compliance with GAAP and reviewed by third-party accounting firm.

Financials are in compliance with GAAP and audited by a third-party accounting firm.

How would you describe your company's growth plan?

We have a detailed growth plan that goes out at least 3 years.

We have a detailed growth plan that goes out less than 3 years.

We have a general plan that is written and shared.

We have an unwritten plan.

We don't have a growth plan.

How confident are you in the market value of your company?

I have no idea.

I have an idea of the value based on information I have gathered.

I have a market valuation report specifically about my business from a third-party firm.

I have another valuation report (not market value) from a third-party firm.

What is your sales trend in the last 3 years?

Sales have declined significantly.

Sales have declined minimally.

Sales have been flat.

Sales have increased minimally.

Sales have increased significantly.

How do you feel about running your company today?

I enjoy running the company and would consider staying on indefinitely after a sale.

I enjoy managing the business and would consider staying on for at least 3 years after a sale.

I am tired of the business and ready to move on to other things and would not like to stay on more than 12 months after a sale.

I dread going in and would not like to stay on with the company after a sale.

Do you know what a buyer requires from a seller during due diligence?

We know exactly what is needed, and can make it readily available in a short time frame.

We generally know what is needed, and we have the files readily accessible.

I am not sure what is needed, but could most likely pull it together within a week.

I am not sure what is needed, and it would take some time to pull together.

How much is you company affected by a downturn in the economy?

My company is fairly unaffected by economic cycles.

We feel the pain like most other companies.

We are generally hit harder than many other companies.

Are there qualified buyers for your business who have the money and are currently in acquisition mode?

I am not sure how to qualify a buyer.

I am not aware of any buyers.

Yes, I am aware of at least 1 buyer.

Yes, I am aware of at least 10 buyers.

Yes, I am aware of at least 100 buyers.

How would you describe the quality of your revenue?

Most of my revenue is recurring.

Most of my revenue is from long-term projects.

Most of my revenue is from short-term projects.

Most of my revenue is one-time transactional, but I have repeat customers.

Most of my revenue is one-time transactional, and not a lot of repeat customers.

Do you have a plan in place for exiting the company?

Yes, I have developed a well-thought out plan, which includes timelines and goal milestones, as well as tax considerations.

Yes, I am planning on calling an investment bank when I am ready to sell.

Yes, I am planning to transfer the company to a family member or manager in the business, but have not arranged anything yet.

Not yet, I am planning on figuring that out later.

How ready are the business operations for a possible sale? (Select the most true statement)

I have documented policies and procedures for the most important parts of the business operations.

I have well documented policies and procedures for accounting, operations, sales, etc.

I have great manager(s) that will be able to keep things going after the sale.

I am not sure what I should be doing.

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Transaction Preparedness Assessment

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