Click here for a link to the full article by Brian J. Sharkey published on September 1, 2022 in Philadelphia Business Journal.

When a company goes up for sale, it may have great curb appeal (or attractiveness) and generate a fair amount of interest. However, if the substance of the business is not up to par when a buyer starts their due diligence, the lack of its true readiness for the sale may represent a significant hurdle in the transaction.

Business attractiveness
Attractiveness represents the attributes of the business that give it the initial pop to the buyer. Good examples of factors that can increase business attractiveness are:

• The company’s industry.
• Products or services.
• Brand recognition and awareness.
• Years in operation.
• Intellectual property and technology owned.
• General profitability and size.

Readiness Factors
Business readiness factors include:

• The owner’s individual readiness.
• Deal structure considerations.
• Management team.
• Systems and processes.
• Documentation and records (financial and non-financial).
• Compliance.
• Corporate structure.
• Environmental.
• Litigation.