In my role as managing partner for CBI’s Northwest Arkansas office, my team and I conduct a lot of analysis for each business we potentially list for sale.
The initial review includes an assessment of financial health, sales, salaries and more. At CBI, however, our team goes deeper. We asses other key drivers of value including how the company is structured, the readiness of the workforce to step in to new leadership roles, the company’s culture, the reputation of the organization and more.
In addition, we often delve in to understanding the overall maturity of the organization. This can often be uncovered by considering whether company leaders have taken time to document critical policies and procedures. Sometimes we tend to view things as a simple event because we accomplished it quickly and easily. But, someone made that happen by having processes and procedures in place.
Why does this matter? Simply put, documenting critical steps will ensure every team member understands what’s expected of them. And, from a risk perspective, those processes and procedures will give your team ready access to tools, procedures and instruction on what to do when something catastrophic or unexpected occurs.
In your own business, ask yourself will the teams on the ground know how to keep the business running? And, when it’s time to sell your business, ask whether your buyers will be able to rely on your documented processes for a smooth transition and stable business operations?
The continuity of a business depends on having those processes and procedures documented and communicated throughout the organization. The same is true in selling a business.You might read about a business selling and casually assume that when you’re ready to sell yours it will simply happen.
However, I can assure you, at CBI, we follow a process to create a personalized/customized approach that includes analysis, internal due diligence, market research, PR, marketing, financial assessments and more. The expertise, processes and procedures required for a business transaction are involved and we have a process to follow. If you are ready to explore getting your business ready to sell, contact CBI today to help you add value to your organization by developing a detailed business exit plan.
We’ve got the processes and procedures ready to guide you.