You wouldn’t buy a car with a cracked engine block, would you? Or move your family into a brand-new house with foundation problems? Or knowingly build your new manufacturing plant on a fault line? OF COURSE NOT!
Whether you are buying or selling a company, there are things to consider besides cash-flow and EBITDA that you should really understand, regardless of the role you have in the transaction. As a buyer, you need to know if the claims that the seller is making about their revenue generation capabilities can be trusted as accurate and verifiable. As the seller, you need to have confidence that your revenue generation engine will stand up to careful scrutiny.
Understand the ‘gaps’
Whether you are buying or selling, you owe it to yourself to engage in a thorough Sales Due Diligence assessment to identify the ‘gaps’ in these 16 areas that need to be addressed to increase value (if you are selling) or reduce the buying price (if you are buying).
We’ll provide an in-depth sales due diligence analysis to help business owners and investors make profit-aligned decisions when buying or selling a company. You’ll get a comprehensive report that assesses the sales infrastructure, sales process, sales support, and sales organizational systems, and includes the viability of all areas to drive consistent growth, with a plan to repair those areas that need attention.
The Investment Sales Analysis® empowers business owners and investors with an objective evaluation of key sales infrastructure components – disclosing how exposed a business is to experience leading or lagging sales growth. Some ‘surprises’ include…
- A company can’t scale according to projections / expectations
- Uncovering that the sales group isn’t capable of achieving desired results
- Building projections around the current book of business and sales pipeline only to find it’s not suitable to support the purchase
- Not having clear line of sight into how sales is adversely affecting business operations
- Determining that an inefficient sales system won’t allow the company to be ready for purchase or acquisition
My colleagues and I complete hundreds of ‘deep dive’ assessments each year in our client settings. We are unbiased resources who are well equipped to speak as an authority in this area that hits at the core of our Fractional VP Sales specialty.
If buying or selling a company is in your near-term priorities, I am available to help you assess your current state and develop a plan that properly navigates the way forward in your unique environment.
I am part of a national group of Senior Sales Leaders who collaborate to share insights like the examples shown in this article. We formed because of our shared passion to help business leaders exponentially grow their revenue.
President | Sales Growth Advisors LLC
(Schedule) Here is my calendar link!