Preparing a company for a transaction

Decide what the transaction is for

A transaction can serve different purposes: succession, expansion capital, a partial exit or access to a strategic partner. Each leads to a different discussion about ownership and the future of the business.

Start with the intended outcome, the owner’s future role and any conditions that would rule out a deal. Those choices should guide the preparation, rather than emerge late in negotiations.

Make the financial picture understandable

A prospective counterparty needs to understand where revenue comes from, which customers and contracts matter, and how working capital and recurring costs affect the business.

Separate historical performance from forecasts. Reconcile inconsistent records and identify dependencies on key people or counterparties, rather than leaving them to surface during diligence.

Bring ownership and funding into the same discussion

The amount raised is only part of the decision. Ownership, management responsibilities and the use of proceeds also shape the transaction.

For example, capital going into the business is different from proceeds paid to an existing shareholder. Make that distinction visible from the outset, alongside any third-party consents and legal or tax questions that specialist advisers need to resolve.

Prepare for the first substantive conversation

Bring recent financial statements, the ownership structure, major contracts and a short explanation of the proposed transaction. Flag figures that still need reconciliation and documents that need confidentiality arrangements before sharing.