What Is the First Step in Talking to Buyers?

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The first thing that I’d highly recommend anybody does is getting an exit audit done. An exit audit is something like a mock due diligence. You have somebody come in. It’s the sort of thing that I would do for people that come through your business and ask you a whole range of questions and tick the boxes, to be able to see how well prepared you are when you think you’re prepared.

You can then get a rule of thumb, it could be a score, to say how prepared you are. One of the things we haven’t mentioned, apart from everything that’s in the business, it’s about the preparedness of the owner in terms of exit. Which is about understanding what the owner knows about valuation, how they’re going to handle the exit with the staff themselves, addressing some of those curlier, more personal issues as well as figuring out what they need. What do they need financially?

A lot of people, as often happens even when you are selling a home, the seller, vendor, has an inflated view of what the business might be worth or their home might be worth the same. That just happens. That’s the way it is. Now you can actually get a bit of realistic feedback and understand that there are other issues at play that you need to consider.



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