Exit readiness – prepare the company before the buyer looks
A buyer and their advisors will examine your company systematically. With exit readiness, you do it first – while there is time to make improvements and while they can still affect the price.
- Review against a fixed checklist
- Prioritized actions
- Can be combined with a valuation
Why it pays off
A buyer prices risk. Dependence on a few customers or key people, unclear figures or inadequate documentation lower the price – or end up as conditions in the agreement.
Value is not only about revenue and earnings. Even listed companies can see their share price fall when earnings beat expectations, because value depends on more than the bottom line.
Many issues can be improved, but it takes time. The earlier you start, the greater the effect.
How it works
Review against a fixed checklist
The company is reviewed systematically against a fixed checklist of the factors that typically affect a buyer’s assessment and price.
Prioritized areas for improvement
You receive a prioritized overview of where the most value can be gained. Concrete, measurable actions – not general advice – starting with the low-hanging fruit.
The effect in money, if you wish
Combined with a valuation, the review shows the value today and the potential value once the actions are implemented.
Follow-up, if you wish
Milestones are set, the actions are divided into phases, and progress is followed up along the way.
What buyers look for
The review is based on what buyers and investors typically focus on, for example:
- Realistic assumptions
- Are budgets and growth expectations based on documented data?
- Cash flow and liquidity
- What does the cash flow look like, and are capital needs under control?
- Market position
- Does the company have clear differentiation and a sustainable market?
- Management and organization
- Are the skills and structure in place to execute the strategy?
- Risks
- How are uncertainties managed, e.g. dependence on key customers or suppliers?
- Documentation
- Can the figures and key agreements be documented when a buyer asks?
Capitum does not run the sale
Exit readiness is an independent review. Capitum does not run the sale process and receives neither success fees nor value-dependent fees. The results can therefore be used with the transaction advisor of your choice – or as a basis for deciding whether and when to sell.
Questions and answers
When should I start?
Ideally a few years before a planned sale, so there is time to implement the actions. But even close to a sale, the review can uncover issues that should be fixed or explained before the buyer finds them.
What exactly do I get?
A prioritized overview of areas for improvement with concrete actions. Combined with a valuation, you also get the value today and the potential value once the actions are implemented.
Does it require a valuation as well?
No. But the combination shows the effect of the actions in money and makes prioritizing easier.
Other services
Where does your company stand today?
A short, no-obligation call clarifies whether a review makes sense for you now, or whether it is too early.