Q: How in-depth is the ‘due diligence’ process, and can I prepare for it?
JT says: The short answer- yes, it’s an intrusive process, it needs to be. And yes, you can (and should) prepare. The restoration industry is unique, so DD is required, but not easy.
For confidentiality purposes, not every detail is disclosed when recruiting the best buyers. After an accepted offer it’s essential buyers gain more knowledge and insight before spending millions. Via a ‘DD Checklist’ hundreds of questions will be asked along with documents requested, primarily surrounding 4 categories: Financial, Operational, HR & Legal.
Per dozens of conversations, DD winds its way through documents, audits, interviews and site visits. (Plz don’t let this scare you, it’s a controlled process.) Organization and responsiveness from a seller is key to efficiency. Ranging from 60-120 days, it can be time-consuming, intimidating, and exhausting if you’re not adequately prepared.
Starting early and being prepared adds value by building buyer confidence, ultimately increasing your chances of success.
Get Answers + Get Prepared = Get Retired
Have a question for JT? Don’t worry, all questions will remain anonymous! You can email JT at [email protected].
JT Kraai
As CEO and Founder of Exit Strategies 360, JT takes extreme pride in helping business owners prepare and navigate the business sales process. As an M&A Advisor, Broker and Consultant for 20+ years, he has structured hundreds of transactions for virtually any scenario, keenly understanding the needs of both buyers and sellers.
JT indicates, “Most business owners are unaware of their options when it comes to preparing and selling their business. These options can increase cash and decrease taxes by hundreds of thousands of dollars. An educated decision is always the best.”
He then adds, “An owner’s weakest link is fear… without knowing how to proceed, they don’t. We offer the tools, process and roadmap to proceed with confidence.”
With over 25+ years of entrepreneurial ventures including five start-ups/sales, he has a solid understanding of what it takes to successfully create, expand and maximize business values. JT instinctively has the expertise and capacity to think about critical factors affecting the success of a transaction, providing an extremely valuable perspective and advantage for his clients.
According to JT, “You’ll probably do this only once in your life… let’s do it right.”
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