Contact us

Leadership

Business succession and sale: how to prepare a company for a change of ownership

Markku PulkkinenPublished Reading time 4 min
In shortA company is ready for a change of ownership when its value doesn't depend on the current owner: leadership, customer relationships and knowledge are shared, and the figures reliably show profitability. Preparation should start well before the change is relevant.

When to start

The earlier the better. Many value drivers, such as reducing dependence on key people or a concentrated customer base, take time.

What affects value and transferability

  • Owner dependence: does the company run without the current owner?
  • Key people: is critical knowledge with a few people?
  • Customer concentration
  • Profitability and its documentation
  • Strategy and growth outlook

Succession or sale?

Both need the same readiness. In a family succession the question is often the successor's readiness and financing; in a sale the buyer's view shows directly in the price.

How preparation proceeds

First find what affects value and transferability, then plan and schedule the fixes. Tax and legal questions are handled with their experts.

FAQ

How long before a sale should preparation start?

As early as possible. Some value-related fixes take time to show in daily operations.

What makes a company attractive to a buyer?

Results that don't depend on the current owner: shared leadership, a spread customer base and reliable figures.

Next step

Want to discuss this?

Contact the author directly. Let's go through your company's situation with no commitment.

In person

I'd like to talk more

Let's go through your company's situation together, with no commitment.

Write to us

Tell us about your situation

Write a few words about what you want to develop. We'll get back to you and arrange an interview.

FORCEO – You got it.