Insight
When is a company actually ready to sell?
Readiness is not the same as willingness.
The short answer
A company is ready to sell when the value a buyer will pay is supported by evidence the buyer can verify, and when the business can operate without the founder. Many businesses that want to sell are not yet ready. Earnings depend on the founder, records will not withstand diligence, or the growth case rests on assumptions a buyer will discount. A sale readiness review tests what a buyer will challenge, where value leaks during diligence, and whether to sell now or after a period of preparation.
When this matters
- Considering a sale in the next one to three years.
- Planning succession or a partial exit.
- Preparing in case an approach arrives.
- Before appointing an adviser or broker.
What gets tested
- Founder dependency, and what leaves with the founder.
- The quality and durability of earnings.
- Customer concentration and contract risk.
- The records and reporting a buyer will examine.
- The gap between price expectation and defensible value.
- What preparation would move the number.
Common problems
- Confusing a good business with a sellable one.
- Earnings that walk out the door with the founder.
- Diligence surprises that reset the price late.
- Going to market before the story can be defended.
What the review produces
A view of the likely buyer challenges, where value is at risk, and a clear answer on whether to proceed now or prepare first.
Related review
Contact
Discuss a decision
PHCA works with a limited number of companies at any one time. Enquiries are most useful where there is a defined decision, a clear timing issue and a need for independent judgement before the company proceeds.