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PKF Texas – Entrepreneur’s Playbook®:Sell-Side Due Diligence

by | Nov 20, 2009 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.

With the current economic climate, many companies either need to find a buyer or want to prepare to sell when their industry’s market makes an upturn. How does a company prepare for a sell event so that they are rewarded with the highest price for their company?

One way to prepare now is to perform a sell-side due diligence review. This process is designed to allow current management to continue to focus on day-to-day operations while outside professionals perform agreed upon procedures on your accounting and operations records and reports.

Your financial records must be in a condition that potential buyers can quickly understand financial information and operations reports.

Accuracy and transparency are key when buyers are evaluating your company and preparing an offer. Buyers want to ensure the quality of their purchases and develop a business plan and financial model that produces a significant return on their investment.

This type of review is designed to uncover potential concerns or anomalies that you will either want to correct or make the buyer aware of during the initial discussions.  Because when it comes to willing buyers you never know when they may be knocking at your door. 

For more information about sell-side due diligence engagements, visit www.PKFTexas.com/RTP.

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