Exit readiness and the G&G assessment: a first step

Exit readiness is about understanding how a buyer may assess a business before a transaction begins. It does not mean that an owner has decided to sell, set a date or committed to a sale process. It is a way to examine the business’s strengths, dependencies and areas that may invite questions, while there is still time to choose what to do next.

For an owner who is unsure where to start, a short assessment can make the subject more practical. G&G’s online readiness assessment is described on the website as free, confidential and approximately two minutes to complete. It asks focused questions across areas including owner independence, financial and revenue quality, strategic position, management and operations, diligence readiness and transferability.

What exit readiness looks at

A buyer will want to understand how the business earns money, which factors support future performance and where the business depends on particular people, customers or suppliers. They will also want a clear view of the company’s position in its market and the evidence behind its growth story.

G&G’s exit readiness service organises this review around value drivers, likely buyer questions, buyer risks and credible positioning. The exact questions vary by company and sector. A client-facing service business, for example, may need to explain contract quality and the depth of its delivery team; another company may have different dependencies to address.

What the assessment can help you notice

The assessment can prompt owners to consider questions they may not ask while focused on daily operations. How reliant is the company on the founder? Can financial performance be explained clearly? How predictable is revenue? Do managers have the information and authority to run the business? Could a new owner understand key processes and obligations?

If a question feels difficult to answer, that is useful information. It may point to a document to locate, a management conversation to have or a wider issue to explore. Owners can use the result to organise follow-up questions and decide whether a more detailed review would help.

What a short assessment cannot tell you

A quick online questionnaire is not a formal valuation, a prediction of sale price or a guarantee of buyer interest. It cannot take account of every business-specific detail, market condition or potential acquirer. Nor does a score determine whether an owner should sell.

Treat the assessment as an orientation tool. It can help you identify topics to explore, but decisions about value, timing and a transaction require consideration of the company’s facts and the owner’s objectives. Owners may wish to involve their accountant, lawyer, leadership team or an M&A adviser as appropriate.

Turn a result into practical questions

Choose one or two areas to explore first, based on your goals and the amount of work involved. If financial quality is a question, review whether monthly results are reliable and whether unusual items can be explained. If the business depends on the owner, map the decisions and relationships that currently sit with them. If growth is central to the story, identify the evidence that supports the opportunity.

Preparation does not have to be a large project. Some improvements are operational; others involve documenting information and making responsibilities clearer. The right priorities depend on the business and the owner’s timetable.

What clients may want to know in a first meeting

A founder introduction is more useful when it helps a prospective client picture the working relationship. Owners and acquirers can ask who will lead their engagement, how directly the founders will be involved, how decisions and risks are communicated and how G&G coordinates with the client’s other advisers. They can also ask which experience is most relevant to the specific sector, transaction type and circumstances. A good introductory conversation should leave the client clearer about fit and next steps, not under pressure to commit.

The firm describes its model as senior-led, confidential and without obligation at the first-conversation stage. Clients can explore the selling, buying and exit-readiness services to understand how the work differs, then speak directly with G&G about the decision they are facing. The people behind the firm and their individual credentials are set out on its founders page.

This article is general commentary for Australian business owners and does not take account of any particular business, its circumstances or its objectives. Any figures, ranges and examples are illustrative only and are not a valuation, an appraisal or advice on your business. Advice on a specific business is given only through a confidential engagement with G&G Advisory Partners.