Perspectives · 19
Preparing a Business for Investment or Acquisition
Transaction readiness is built before due diligence begins.
The management question
Transaction readiness is built before due diligence begins.
Buyers and investors test the reliability of earnings, contracts, customers, management and forecasts. Preparation improves credibility, reduces disruption and allows management to explain the business with evidence.
What to examine
Transaction readiness
- Financial statements are accurate and reconcilable
- Normalised earnings are explainable
- Material contracts are current and accessible
- Customer and supplier concentration is understood
- The management team operates beyond the owner
- Forecasts connect to operational drivers
Pentos
A practical framework
- 01
Define the specific choice the business is making.
- 02
Translate the choice into economic and operating assumptions.
- 03
Identify the capabilities that must be distinctive.
- 04
Set evidence-based milestones that can change the decision.
Interactive tool
Preparing a Business for Investment or Acquisition
Use this tool as a structured starting point. Results are educational and indicative, not professional, legal, tax, investment or regulated financial advice.
Practical next steps
Transaction readiness
- State the decision in one sentence and name the alternative.
- List the three assumptions most capable of invalidating it.
- Choose the next evidence that should be collected before further commitment.
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