Prepare for the questions a buyer will ask
A sale valuation starts with the earnings and cash flows a new owner could expect. Historical accounts are an important input, but owner involvement, exceptional costs, customer dependency and required investment can change the picture.
Business value and sale proceeds are different
An enterprise value relates to the operating business. The amount attributable to shareholders can also depend on cash, debt, working capital and the terms of a transaction. Deferred payments and contingent consideration should be understood separately from a headline price.
Bring the evidence behind the performance
Prepare recent financial statements, management accounts, a summary of the owner’s role and material customer contracts. Explain unusual income or costs, any property included and the intended sale timetable.