Exit Preparation
The best time to prepare for an exit tomorrow is today. The value of a company is often
based on the risk-adjusted multiple of cash flow, or EBITDA. The less detailed or GAAP driven the financial statements,
the more risk is applied to the results. This can often result in companies selling for multiples of cash flow that
are 1x to 2x less than similar companies with solid books and records. Often buyers are looking for two to three years
of professional financials to greatly reduce the risk. That is why a company looking to sell in two years or more should
start preparing today. The Sutton team can quickly assess the deficiencies in your current accounting and reporting
structure and present (and implement) those improvements necessary to maximize price on exit.
· Preemptive Due Diligence
· Recommendation of
financial improvement plans
· Implementation
of financial improvement plans
· Identification
of profit levers through detailed profit mapping (Incometrics™)
· Interim
CFO and COO services