The Readiness Assessment

If you’re thinking about selling your company or taking on a capital partner, nearly everything is at stake.

It’s possible to get to the other side of a sale and have all your needs met and get an outcome that’s great for everyone. It’s also possible to get to the other side and feel as if twenty years of your life were wasted, even as everyone around you celebrates.

Take it from me -- I’ve been there. I’ve sold a business the wrong way, but then I bought it back and sold it again the right way. I can tell you there’s a world of difference in how it feels.

That's what “selling without selling out” is all about, and the process of getting your company ready for sale begins with a look at some big questions. Take the assessment to get started and evaluate where you are on the path to readiness.

- Sunny Vanderbeck

Are you the owner, CEO or a board member?

Yes

Annual revenue:

Less than $10 million

$10-$30 million

$30-$100 million

$100-$250 million

Greater than $250 million

1. How would you describe your current day-to-day involvement with your company?

a. I'm involved in every aspect of my business; the place can't run without me.

b. I delegate most key tasks to my senior/executive team and focus on big picture planning.

c. I talk to the team that runs the company... occasionally.

2. In five years, what role do you see yourself having within the company?

a. I still want to be leading the business as it grows and achieves new levels of success.

b. I'll still have a role, perhaps as a chairperson or similar, but I'll be out of the day-to-day life of the company.

c. I want to be completely out of the business, and I know exactly what I’ll be spending my time on next.

3. How does your business run today?

a. If I’m not personally involved, my team can’t handle all the fires that pop up every day.

b. It’s a well-oiled machine where everyone – from shareholders, to employees, to vendors and customers – is a valued and necessary part of our success.

c. There may be a few hiccups occasionally, but if we had more capacity and resources, I know we could be much more successful.

4. As you think about selling your business or bringing on a capital partner, which statement describes you best?

a. I think it’s best to sell quickly and to the highest bidder.

b. I know my “number” in terms of a price I would accept, but I’m not sure what else is important.

c. I've spent time reflecting on what's important to me and to the company and what a perfect partner or future owner would look like.

5. When it comes to evaluating potential buyers or capital partners for your business:

a. I have a very clear idea of my priorities – in writing.

b. I have given some consideration to what I might want.

c. I haven’t thought about how I will evaluate potential buyers.

6. When determining the best potential investor/buyer, it’s most important to consider:

a. If a potential partner has the experience to help move my business forward.

b. The amount of their bid.

c. Whether or not they are a culture fit and share the same values.

7. Once you begin the process of selling your business or bringing on a capital partner, it’s best to tell:

a. Only my CFO or controller.

b. Several of my senior people – those who have the skills and experience to understand what a sale could mean.

c. All of my employees. I want to be transparent with my entire team.

8. If a buyer/investor asked to see the last five years of your company’s performance vs. projections today:

a. I would have to scramble to come up with them; I usually just keep general projections in my head.

b. I would be able to send them a few financial documents, but it would take a few weeks to get everything together.

c. I would be able to send them immediately.

9. If you were on the verge of closing a good deal with a buyer/investor, but there was one term in the buyer’s contract that bothered you, you would:

a. Call it out and go back to the negotiating table immediately, even if it meant losing the sale.

b. Revisit my original priorities and ask myself, “Are these priorities still being met or surpassed?”

c. Stop the process to gather input from my advisors and/or partners.

10. Think about what your business will look like the day after selling or taking on a capital partner. What do you envision?

a. There will be some changes, but overall it will be on a path of growth and improvement, and the culture we have worked hard to create will be preserved.

b. I don’t have a clear vision yet, but I have been asking questions and gathering information about potential buyers’ motivations and intentions.

c. Not sure – I have not given it much thought.

Note: We need your first name and your email address for the assessment; everything else is helpful but not required. We will not share any information you provide with anyone else, and we will not overload your inbox.

* First Name

Last Name

* Email Address

Company Name

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