Seller Readiness Assessment

Using our experience from selling businesses since 2008, we’ve summarized below the key characteristics that buyers evaluate closely. A buyer almost always has done extensive homework before they look at individual target companies for purchase. They look at the industry, the market and the strongest companies. They prepare a list of attributes that they want. THEN, they start looking at and talking to companies that interest them.

We’ve listed the most common attributes that they look at closely. Some of these they can learn before beginning talks with you, some they learn only after initial discussions. Some are only available after the Letter Of Intent has been signed. Ultimately, it’s this package of information that will establish their willingness to proceed and if so, the price they’ll offer.

This tool is for you; it’s not a sales tool for us. We won’t even see the information you enter or know you did it unless you choose to send it to us.  Our goal is to help you see your company through the eyes of a buyer.

If you would like us to help you understand your market potential in a sale, give us a call or send the attached along with a note.

Scale:

  • 4 – In the top 15% of our industry
  • 3 – As good as others in our industry
  • 2 – We’re lagging but not badly
  • 1 – We’ve got a problem here
  • N/A – Doesn’t apply to us

All of the following are in the context of your industry, market and competitors Doesn’t Apply 1 Weak 2 Lagging Competitors 3 Good Performer 4 Best in Class
Profit and Profit Consistency is strong year over year
EBITDA is a familiar calculation and is strong year over year
Debt: Total Debt, Line of Credit, Debt Ratios are good year over year
Capital Investment is consistent and adequate to support competitiveness
Strategic Business & Financial Plan: a 3-5 year look-ahead with execution plan
Products and/or Services are up to date for our industry & market
Proprietary: Patents, Products, Services, or Intellectual Property
Sales Growth is strong for our market & industry
Customer Concentration: no customer more than 30%
Competitiveness: Strong in our in our market & competitors
Market Research: Shows market direction, opportunities, & competitive position
Process Technology is up to date & competitive for our market & Industry
Equipment is modern & well-maintained
Building & Building Infrastructure well maintained & shows well
Workforce: enough people, of diverse ages, with right skills
Compensation: Fair and competitive at all levels of the organization
Environmentally Compliant: Meet all regulations, audits, clean violation history
Supplier Base: Diverse base of financially healthy suppliers. Few/no sole sources
Quality Systems & Certifications for industry, markets, & customers, e.g, ISO, TS,
Information Systems, Software & Technology is fully up to date
Financial Reporting/Statements: Timely, accurate, detailed, analytic
Cost Accounting System is up to date and accurate in real time
Quoting and Estimating is accurate and repeatable
Business Development is a consistent focus
Sales Team: Sales, Customer Service, Inside Sales, Processes
Marketing: the right budget, up to date & competitive
Marketing Technology: Software, Lead Generation, Inside Sales etc.