As you prepare to sell your business, it is important to review every interaction that you have in the normal course of business (both inside and outside the Company), to ensure that all critical ‘people’ have been considered. People include all employees, plus outsourced resources that don’t appear on the organization charts.
There are four steps to ensure an effective review:
The same four-step evaluation process should be used for all outsourced activities.
Once key individuals/outsourcing are identified, determine how you can secure the appropriate commitment from them. Imagine after all this effort that some of the keys-to-profit simply leave the Company?
One caution… you should make organizational structure and resource changes well in advance of any probable sale transaction. It is important to have a period of stability prior to sale, so that you have a demonstrated performance with the current structure and team in place. After a Company restructures, worker’s compensation claims, absenteeism, and employee legal suits often increase. Potential buyers will be wary of significant changes in personnel, organization structure, compensation and benefits changes within a short time of the sale.
CFO Insight LLC