8 Situations In Which A Tune-Up Makes Sense
When considering whether or not to sell a healthcare business, some owners have to wrestle with a decision: should I wait and perform an overhaul of my business, or am I in good enough shape for just a tune-up before I go to market? An overhaul typically makes sense when there are significant issues to be addressed and there are resources, including time, that favor this option. A tune-up makes sense when:
- The company is profitable and could be more so with minor adjustments
- You management team and other employees function adequately most of the time
- The majority of processes/procedures work even if they are relatively informal
Here are eight other circumstances when a tune-up for your business makes sense:
- The Timeline Is Short – Out of desire and/or necessity you want to sell your business in less than six to 12 months and there is nothing preventing you from doing so.
- Strategy For The Future Is Not Your Focus – Whether or not your business is successful at this point, your strategy seems to be solid and any adjustments are tactical or one-time events.
- Financial Statements Are Adequate – Your results may be superior or not, but you have a relatively accurate reporting system that can be improved with modest outside consultation, at most.
- The Marketplace Is Known – Even if your marketplace is changing you understand it and have prepared to address impending changes that may concern a buyer.
- The Customer Base Is Stable – You have a relatively stable or growing core customer base with historically good referral relationships.
- Organizational Structure Is In Place – While you may have some management turnover, the structure of your organization makes sense. A new owner may want to change this but the logic of your operation is coherent.
- Legal/Regulatory Compliance Is Visible – Whether involving your products/services or your employees/contractors, you have addressed the typical issues in your market. If there are any past issues, you can provide evidence they have been addressed.
- Data-Management Systems Are Functional – Technology may not be your strong suit, but you have a reasonably reliable system for internal and external reporting purposes.
There are probably other considerations depending on the nature of your business, location and your personal goals. The situations above give you a good starting place for making your assessment and taking the next steps.