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Signing a Contract

Operational Assessment

Image by Gabrielle Henderson

Some businesses may look ready for sale, but are actually not prepared from an operational perspective to be sold at the highest premium for the seller.   From the sellers point of view, there is no reason to leave money on the table if operational adjustments can positively affect the sale price.   These adjustments could be major changes or just minor tweaks, and may include both human and equipment capital changes.   They can be adjustments to current processes, upgrading to more efficient equipment, or use of technology to increase employee/worker proficiency.  With many years of experience in operational management, Brokers.Law has developed processes by which to evaluate your company’s operations to determine if any adjustments are required prior to placing the company up for sale.   Only changes or adjustments that lead to an incrementally higher selling price will be proposed and implemented upon consultation with and approval of the business owner(s).

 

Brokers.Law operational assessment process begins with the first client contact, conveying their interest in the sale of their business.   After the initial conversations and getting an overview of the business and the owner’s expectations, the Brokers.Law team evaluates whether the business is a true candidate for sale.  While disappointing to the business owner, many companies are thought to be saleable, but unfortunately are not.  

 

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  • Initial summary review of business Operations from a business broker / buyer perspective

    • Manufacturing Business Review

      • Review manufacturing operations first hand to determine if any modifications would be necessary to increase the efficiency and therefore the profitability of the company

    • Services Business Review

      • Review the service operations first hand to determine if any modifications would be necessary to increase the efficiency of and the profitability of the company

    • Determine if changes are necessary prior to listing

 

  • Detailed review if necessary

    • Meet on-site with key personnel to review business practices

    • Shadow operations for short period

 

Based upon the aforementioned review, an assessment of the operational changes will be developed, detailing the results and providing recommendations to business owners to consider for implementation .   The assessment results will be discussed with the principal business owner.   The owner will be provided with the insight and rationale on the suggested changes, the cost involved, and the expected benefit to the business valuation that will result from the implementation of the changes.   Ultimately, it is the business owner’s decision to either approve or disapprove of the changes.

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