Balancing Honesty and Optics: Ethical Considerations When Selling Your Business

As the owner of a successful manufacturing company, John had poured his heart and soul into building the business over the past two decades. Now, with retirement on the horizon, he faced the daunting task of selling the company he had nurtured from the ground up. John knew that first impressions were everything when it […]

The 3 Crucial Steps to Fast, Efficient Operational Due Diligence

In Part 1 of this two-part series, we examined just how important it is to every level of your business to ensure your operational due diligence is done as quickly and efficiently as possible. But the question remains: How do you speed up the operational due diligence process and reap the benefits of informed decision-making, […]

The Importance of Streamlined Operational Due Diligence

It’s a common yet unfortunate situation: private equity investors spot a promising manufacturing business for acquisition. Initially, the numbers look good, and growth prospects seem feasible. Ideally, they would have enough time for thorough research. But reality isn’t perfect. So, they take a leap of faith and go ahead with the acquisition, hoping for good […]

5 Things to Look for in a Consultant for Due Diligence

Imagine this scenario: your private equity firm identifies a promising acquisition target. The company appears well-run, with a stellar reputation and potential for operational improvement. Eager to seize the opportunity, your firm moves forward without in-depth operational due diligence. However, once the deal is sealed, unforeseen challenges emerge — working capital issues, quality challenges, operational […]

The Third Leg: Where Most Acquisitions Fail

In 2004 I was consulting for a business who had acquired a company. Things were not going well. Production was abysmal. The culture was in ruins. No one from the acquired company seemed to have anything good to say about the parent company. I knew from day one that I had my work cut out […]

Two Quick Key Indicators for Assessing the Health of a Company Before Acquisition

When you’re thinking about buying a company, it’s important to look at more than just the financials. You also need to assess the company’s operational health. What’s amazing is that two of the best metrics for gaining a valuable amount of information on the operations side of things–namely, inventory levels and workforce engagement–can be gathered […]

Operational Assessment Before You Sell

The Power of a Quality of Operations Proposal in Maximizing Bid Price for Private Equity Firms When private equity firms sell a company, they usually do a financial analysis called a Quality of Earnings (Q of E) proposal. This verifies the legitimacy of earnings and adjusts for any one-time expenses that might distort future profitability. […]