Pre-Sale Planning

PRE-SALE PLANNING

Business owners can improve the chances of a successful sale of their company, and mitigate the chances of post-closing disputes, by thoroughly assessing the areas that buyers consider in due diligence prior to going to market. Brandlin & Associates’ Pre-Sale Planning Services involve a thorough assessment of the financials, operations and management, greatly improving the company’s ability to pass a prospective buyer’s scrupulous due diligence.

We apply experience gained from conducting hundreds of due diligence and dispute resolution engagements on behalf of financial and strategic buyers. Working in conjunction with our client’s investment banker/broker, or before an intermediary is retained, we thoroughly assess and are available to help remedy deficiencies in areas including:

Financial

• Accounting systems, policies and procedures
• Revenue recognition and costing methods
• Consolidated and detailed gross margin analysis
• Integration of operational and accounting software

• Historical financial statements
• Consistency of EBITDA over comparable time periods
• Preparation in accordance with GAAP
• EBITDA calculations and adjustments for non-recurring items
• Purpose of related party relationships
• Impact of under or over-market related party transactions on EBITDA

• Accounts receivable and sales
• Terms, aging and quality
• Customer concentrations

• Inventory valuation and costing methods
• Accounts payable terms and aging
• Financial projections and related assumptions
• Quality and dependability of operations, future cash flows and
  financial positions
• Capital expenditures & deferred maintenance

Operations

• Evaluation of managerial depth
• Internal controls
• Reporting compliance
• Process improvement and re-engineering
• Human resource management

Market Position

• Business trends
• Competitive assessment
• Market evaluation and demographic reviews
• Performance benchmarking