Strategic readiness:

Knowing when to enter into a process to buy or sell is likely the most important part. Allocation of resources, financial planning and operational distractions need to be taken into account. At Revenue Rocket we evaluate a client's strategic readiness based on several attributes:

• Why is the company looking to sell or buy? Growth or survival
• Does the buyer or seller have their priorities in order?
• Are realistic expectations in place?
• What type of deals will be considered?
• Will the leadership team stay post close and if so why?
• Has the client fielded any interest so far?
• Has a process failed in the past and if so why? (We have covered this in Episode 61- your deal fell apart now what which you can find on our website)

Operational readiness:

When a company is in a process it is important to plan for distractions but also ensure that the performance of the company maintains a positive momentum regardless of additional workload associated with the process. Financials need to be in order, tax returns up to date, audits complete (in some cases), product and market positioning is well known and that the intended outcome is well documented and realistic. 

• Here are a few operational readiness items that always surface during a process:
• Does the company have a data room and is it populated
• Has a valuation exercise been vetted and tested
• Are the third party support services onboard and available
• Lawyers
• Accountants
• Tax experts
• Advisors
• Are the facilities and leases ready
• Do you have a solid understanding of charge backs and other reps and warranties that will come to light during due diligence 
   

Work with an advisor to help you get ready!

Listen to Shoot the Moon on Apple Podcasts or Spotify.

Buy, sell, or grow your tech-enabled services firm with Revenue Rocket.