With the M&A market still hot, there are many businesses for sale that seem attractive at first glance, but upon a deeper review, may not be truly ready for a transaction. In these situations, the seller may not realize as much value as they originally hoped. Or worse, they may be forced to delay selling.
When a company goes up for sale, it may have great curb appeal (or attractiveness) and generate a fair amount of interest. However, if the substance of the business is not up to par when a buyer starts their due diligence, the lack of its true readiness for the sale may represent a significant hurdle in the transaction.
Brian J. Sharkey, Director-in-Charge, Business Advisory, takes a deeper look into what we mean by attractiveness versus readiness when it comes to a business that is up for sale.