The Strategic Sellability Plan (SSP) is unique to each business and specifically tailored to align with the goals of the business owner. Because each business has specific traits to be considered, the process for building the SSP is accomplished by providing answers and recommendations in each of the 5 key areas. Below just a sample set of questions addressed in each area:
Financials
- What level of accounting/CPA support is needed?
- What type of entity is conducive for sale of the business?
- Are current financial reporting capabilities in line with industry expectations?
- How should cash flow be reported on tax returns/financial statements?
- What financing options should be considered for potential acquirers?
- Which tax strategies should be implemented?
Assets
- How should major equipment purchases be considered?
- How will equipment value affect sellability?
- Is current inventory management suitable based on industry standards?
- How will the value of intellectual property (patents, licensing, etc.) be determined?
- What are the transfer options for client/vendor contracts to a new owner?
Real Estate
- How do the current purchase/lease options affect the timing to sell?
- Are real estate expenses keeping up with current market trends?
- What is the current capacity of the facility and does it allow for adequate growth opportunities?
- How will including an option to purchase the real estate help in the sale of the business?
- What associated risks should be considered in the real estate market?
Operations
- How dependent is the business on the owner(s)?
- What strategies should be implemented for key employee(s) to purchase the company?
- How are operating processes documented and managed?
- How does the concentration of client and/or vendor relationships affect sellability?
- What areas can be focused on to help show clear growth opportunities?
Industry
- What are the current industry trends and EBITDA multiples?
- How does the current verses potential size of the business affect sellability?
- Which key metrics are acquirers focused on?
- What barriers to entry exist and how could these change?
- What is the industry prospectus over the next 5-10 years?