The Smart and Savvy Exit - Internal Due Diligence - Ellen McIlhenny

Ellen McIlhenny - “The Smart and Savvy Business Exit”
 
PROFIT RADIO..."Grow With Us"
Introduction
Introduction
Hi I am Ellen McIlhenny, the Host of “The Smart and Savvy Business Exit”.
As I have mentioned before I spent several years as the CFO of a company that sustained rapid growth for a period of about ten years. Part of that was organic and part was through acquisition.
This gave me a front row seat on the process of evaluating a company to determine the asking price. I learned a lot during that time. One of the most important things I learned was the importance of preparation on the part of the seller.
The due diligence the buyer conducts after a letter of intent is issued is a comprehensive process to ascertain whether the company was fairly presented. This not only refers to the financial statements but every aspect that contributes to the value of the business.
We are going to talk today about why it is so important an internal due diligence be conducted. Doing this could mean tens or hundreds of thousands of additional dollars in your pocket.  
 
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​Show Objectives​

By the end of our time together I hope you will understand the importance of preparation through an internal due diligence when preparing your company for sale. We will be building on last week’s show where we talked about the exit plan in general. Today we will get into the documentation needed for the preparation. Below is a link to the show notes for last week’s show:
https://www.ibgr.network/show_notes/the-smart-and-savvy-exit-the-exit-plan-ellen-mcilhenny

Or you can listen to last week’s show on episodes 13 through 16:
https://studio.podcast.co/ibgr/future-financial-confidence-with-ellen-mcilhenny/episodes
 
Key Issues - ​Owner/Manager Perspective:
Who is on your Due Diligence Team?

1.  Your Chief Financial Officer
   
2. Your Attorney
   
3. Your Chief Operating Officer
   
4. Your HR Specialist

What You Need to Know
 What needs to be compiled?

1. Financial documents
2. Legal Documents
3. Operational Items
4. Contracts - Both Supplier and Vendor
5. Intellectual Property
6. Employment Contracts

What You Need to Do​
What needs to be analyzed?

1. Financial documents
2. Legal Documents
3. Operational Items
4. Contracts - Both Supplier and Vendor
5. Intellectual Property
6. Employment Contracts

 
 
Written by Ellen McIlhenny - CFO Plus Services - www.cfoplusservices.com