Business Succession/Sale Audit is recommended for all business owners considering the next phase of their personal and professional life.  It entails a due diligence report of a firm’s position, efficiency, potential for growth and readiness for sale. It includes a SWOT analysis, market situation study, benchmark performance review, financial review. We assess where the owners, or a buyer, may see growth opportunity and/or possible issues of forward risk.

The audit can be considered as a part of a strategic review and planning exercise, it may be carried out prior to putting a business up for sale to ensure the reviews by potential buyers do not uncover potential deal killing issues; It may also alert the seller to the need to prepare the deal as either a stock or asset sale based on the assets and legacy liabilities.

When entering into a succession agreement or positioning the practice for sale it is important to have a clearly defined situation analysis of the business at hand and understand where the company is exposed to risks that could result in deal breaking issue. The audit covers the desires of the founders for equity protection and monetization and deals with the issue of addressing potential issues ahead of time.

We clarify the owner’s objectives, review the 5 years financial history, recast and create 5 year forward projection, compare to national benchmark performance data, perform a SWOT analysis, review staff credentials to support succession, determine a practice valuation that stands as the basis for a successful sale.

Eighty20 deliverables:

  • SWOT Analysis
  • Benchmark study
  • Business Valuation
  • Continuity plan review and qualification
  • Succession plan review
  • Cost-to-replace analysis on assets and key staff
  • Life insurance coverage review on key staff
  • Buy Sell agreement review
  • Business value analysis impact with loss of key staff

Listing Prospectus

  • Anonymous Summary
  • Detailed Overview and Independent Analysis
  • Letter from Seller

Information needed from client:

  • Completed Eighty20 questionnaire
  • 3-5 years financials or tax returns

Call David now to get started at 970-988-4080 or use our quick contact form.