PKF Texas: The Entrepreneur’s Playbook® - Sell Side Due Diligence

Find out more about how to close a sale for your business.

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Greg Price
Episode: 233
November 21, 2009

Summary:

Would you know how to prepare your company for a sale? Do you even know what all seller due diligence includes? Greg Price has food for thought that could help simplify your preparation.

Full Interview text

Greg: This is Greg Price with PKF Texas' Entrepreneur's Playbook. With the current economic climate, many companies either need to find a buyer or want to prepare to sell when their industry's market makes an upturn. How does a company prepare for a sell event so that they are rewarded with the highest price for their company?

One way to prepare now is to perform a sell-side due diligence review. This process is designed to allow current management to continue to focus on day-to-day operations while outside professionals perform agreed upon procedures on your accounting and operations records and reports.

Your financial records must be in a condition that potential buyers can quickly understand financial information and operations reports. Accuracy and transparency are key when buyers are evaluating your company and preparing an offer. Buyers want to ensure the quality of their purchases and develop a business plan and financial model that produces a significant return on their investment.

This type of review is designed to uncover potential concerns or anomalies that you will either want to correct or make the buyer aware of during the initial discussions. Because when it comes to willing buyers you never know when they may be knocking at your door.

For more information about sell-side due diligence engagements, visit PKFTexas.com/RTP. To read and comment on the PKF Texas' Entrepreneur's Playbook, visit my blog, fromgregshead.com. PKF Texas – The Fit That's Right!