MARKET READINESS ASSESSMENT®
Is it time for a change in your business? Have you struggled with building a written Exit Plan? Are you wondering whether your personal objectives are achievable?
The MARKET READINESS ASSESSMENT® is a service offered by Fulcrum Partners to answer these questions and help business owners plan an effective exit strategy. We conduct a comprehensive survey of your business to determine:
- Financial Strength An objective opinion on the financial performance of your business lays the foundation for a successful exit plan. We analyze your historical financial statements to determine the total available cash flow, help you establish the Fair Market Value of fixed assets, and benchmark the performance trends of your business.
- Competitive Posture Buyers place a premium on businesses with defensible niches. We survey your company’s position across several key factors buyers value the most, including proprietary products and processes, diversity of customer base, company growth opportunities, industry trends, and skills and competencies of employees.
- Business Valuation Before an owner sets an exit plan in motion, it is critical to obtain an expert’s opinion of what their business is really worth in the current market. We work closely with industry accredited business valuators to establish this benchmark.
- Buyer Analysis Buyers analyze the value of a qualified business in the context of the deal structure they intend to use. We use the proprietary BVX® financial analysis tool to model most likely buyers’ offers, taking into account factors such as required ROI, deal structure, financial leverage of the assets, and cash flow available for debt service. This analysis provides a validation of the Business Valuation, gives our clients an understanding of how a buyer will negotiate price and deal structure, and with the advice of their CPA, an understanding of after-tax proceeds of deal structures under different scenarios.
Once completed, the MRA® provides an objective basis for you to understand how ready your business is for your exit strategy. If the business will not support your objectives at this time, the MRA® will identify specific areas in your business that need to improve for you to achieve the desired results. Fulcrum Partners will facilitate efforts among your circle of trusted advisors to build an exit plan that works for you.