Have you experienced pouring valuable resources into an issue only to see nothing change? Discover Organizational Constellations. Bring hidden system dynamics into view so you can work with them and resolve them. Transform Your Organization And Uncover Your Potential (612) 827-5165 info@talonperformancegroup.com Contact us for a free Discovery Session today! If earnings require excessive explanation or lack documentation, buyers may adjust the purchase price or introduce protective deal terms. 3Revenue that is documented and transferable Buyers and attorneys closely review: ■ Customer agreements ■ Renewal terms ■ Assignment clauses ■ Termination clauses ■ Concentration risk ■ Standard Operating Procedures (for internal operations and financial operations) Handshake deals, verbal agreements, or undocumented pricing structures create legal ambiguity — and ambiguity almost always reduces valuation leverage. 4Operations that do not depend solely on the owner From a financial lens, owner dependency increases risk to future earnings. There should be a team of accounting/financial professionals handling your numbers if it’s a team of two or three. From a legal and transactional lens, it often leads to: ■ Longer earnout requirements ■ Mandatory consulting agreements ■ Non-compete clauses ■ Retention structures tied to the seller The more transferable the operations are, the cleaner the deal structure. 5Alignment between financial records and legal reality One of the most common issues uncovered during diligence is misalignment between what the financial reports say and what is in the: ■ Contracts ■ Obligations ■ Disclosures When numbers and documentation tell different stories, buyers lose confidence and attorneys increase protections through: ■ Escrows ■ Indemnities ■ Holdbacks ■ Expanded reps and warranties This does not just slow the deal. It directly affects how much cash the seller receives at closing. There is a lot here to consider and implement to command a premium price. The bottom line is that if you’re planning your transition out of the business; ■ Start the prep process early ■ Get professional support from an exit attorney and a fractional CFO ■ Stay informed. This article was co-authored with TRICIA M TAITT, CEO of Fincore, and SANKEETHA SELVARAJAH ESQ., to provide the legal and financial considerations critical to a successful exit transaction so business owners are rewarded for what they’ve built. Tricia is a member of the Enterprising Women Advisory Board and a 2026 recipient of the Enterprising Women of the Year Award. Connect with Tricia at www.fincore.com. MANAGEMENT 84 enterprising Women
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