Do you need financing for your business? All of the steps required to make a business Sale Ready
are required to make a business “Loan Ready”. By evaluating your business from a buyer’s perspective,
you will be prepared for any banker.
Sale Ready Services
What are Sale Ready Services?
Through its proprietary Sale Ready Services, LMG evaluates a business from a buyer's
perspective. A business is given a grade (Bronze, Silver or Gold) based on its sale readiness and
given recommendations to improve. LMG will then work with the business owner to implement the recommendations.
In addition, the business will be continually monitored for its
sale readiness and its quantifiable value. The ultimate goal of the Sale Ready process is to
strengthen the selling multiple of the business.
Strengthening the Multiple
LMG takes the guessing game out of determining what a business is worth. The majority of
businesses are sold based on a multiple of cash flow. The buyer takes the cash flow of the
business for sale and multiplies this figure by an arbitrary number (the "multiple
") to determine
the purchase price. For example, a business with cash flow of $300,000 is worth $1.5 million using
a 5.0 multiple. For the most part, multiples are based on industry averages and negotiation skills.
While businesses are constantly striving to increase their cash flow, what are they doing to
strengthen their selling multiple? As explained above, both figures multiplied together equal a
business's value. Therefore, a business should be equally focused on strengthening cash flow
strengthening its selling multiple. Through its Sale Ready Services, LMG
will strengthen the multiple. What was once an arbitrary number, a business owner's selling
multiple will be supported with quantifiable data.
Sale Ready Deliverables
LMG will produce five deliverables (reports, packages, models) as part of its Sale Ready Services. All of the deliverables
will be focused on improving the value of the business and will be the support to justify a higher selling multiple. Most importantly,
the deliverables will solve the biggest problem in selling businesses today - the buyer's ability to borrow money.
A business that passes LMG's standards for sale readiness will pass any bank's standards for creditworthiness.
ANALYZE IMPROVE MONITOR
HIGHER SELLING MULTIPLE