Selling a business is a process that requires meticulous preparation and careful thought, sometimes over several years. It is essential for the seller to prepare in advance, by asking the right questions and taking the necessary steps to maximize the company’s value and attract the ideal buyer.
AKCEAN is with you every step of the way, ensuring a smooth and optimized transition. Our pre-sale diagnostic services are designed to identify the best strategies for positioning your business for future sale.
Why anticipate the sale of your business?
Proactively preparing for the sale of a business has multiple benefits, helping to increase the value of the company and make it more attractive to a wider range of potential buyers:
- Strengthening competitive positioning: An in-depth analysis of the business model, market and customer base helps to identify and improve the company’s weaknesses.
- Improving internal organization: Structuring teams and refining internal processes is crucial to demonstrating efficient management and an autonomous company, independent of the seller’s personality.
- Organizing company documentation: Ensuring order and clarity in the company’s legal, tax and financial documentation is essential to reassure the buyer.
- Improved financial reporting: Detailed and regular financial reporting increases the buyer’s confidence by providing a clear view of the company’s performance.
- Anticipation of tax consequences: Analysis of tax consequences is crucial to minimize the tax impact of the sale, which may require the creation of a pre-sale holding company.
- Preparing for the post-sale period: Anticipating future projects and planning the management of the cash generated by the sale ensures a smooth transition to the post-sale period.
- Choosing the right moment: Anticipation helps determine the ideal time for the sale, taking into account market factors, the company’s financial health and personal circumstances.
Pre-sale diagnosis: an essential phase
We recommend setting up a disposal schedule to prepare the company for sale, including a pre-sale diagnosis. This diagnosis provides an exhaustive analysis of the company’s health, identifying its strengths and weaknesses, enabling the necessary improvements to be implemented before the sale.
The stages of the pre-sale diagnosis include :
- Data collection: Gathering of all relevant information and documents.
- Analysis: In-depth study of data to identify strengths and weaknesses.
- Report: Drafting of a detailed report including specific recommendations.
- Action plan: Drawing up a plan to resolve the problems identified and maximize the company’s value.
Typical diagnostic content includes :
- Financial analysis
- Proof of assets and liabilities
- Human resources analysis
- Contract review
- Market and competitive analysis
- Tax situation
- Risk management
- Customers and suppliers
- Intellectual property
- Business processes
- Corporate strategy and growth plans
It’s important to distinguish between a pre-sale diagnosis and an acquisition audit. The pre-sale diagnosis is carried out on the seller’s initiative, and aims to optimize value before the sale, while the acquisition audit is carried out on the buyer’s initiative, to verify the company’s key elements.
The successful transfer of a company relies on meticulous preparation and strategic anticipation. By focusing on increasing value, optimizing processes, putting documentation in order and effectively managing financial and tax aspects, the transferor can not only make the most of his company, but also attract quality buyers. The pre-sale diagnosis is a key tool in this process, offering a comprehensive assessment to rectify weaknesses and enhance the company’s strengths.
Last update: March 2024
