How to Effectively Prepare Your Company for a Successful Exit and Unlocking Buyer Interest

About the Episode

Guest Mark Tarchetti rates the importance of preparing a company for sale at 10 out of 10, saying that inadequate preparation can lead to rapid buyer loss and diminished competition, potentially reducing a business’s value by 20-30%. Mark highlights the power of a clear, compelling business story and shares his experiences from doing $40 billion in M&A deals, stressing the importance of strategic planning, team readiness, and having a robust growth plan focused on potential rather than past performance.

“Build your career and business plan around potential, not past performance. Potential is where it’s at.”

Mark Tarchetti

What You’ll Learn

  • Why you should prepare for the sale: Learn about the significant impact that preparation can have on the sale process and outcome – from generating buyer interest to maximizing the sale price.
  • What to avoid: There are common mistakes and pitfalls that unprepared sellers often face, such as losing buyers, lack of competitive tension, and management disruption.
  • How to make it work: Learn practical strategies and frameworks for effectively preparing your company for sale, including developing a compelling business story, validating growth plans, and aligning the management team.
  • Target your buyer: Telling a compelling story, outlining a viable growth plan, and tailoring your preparation to the specific type of buyer you’re targeting can make or break your sale.

Topics Covered

How important is it for a seller to prepare their company for sale? [2:06]
Are there specific components of preparing a company? [4:57]
What is it like on the buy-side, dealing with an unprepared seller? [9:20]
What are common problems with preparation in founder-led businesses? [18:10]
How do different types of buyers react when they see common problems in a business? [23:20] 
How important is telling a compelling “story” of the business? [31:05]
What impact does competing for buyer attention have on how prepared a seller has to be? [47:10]
What impact does being fully prepared have on the sales process? [55:32]

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Meet Our Guest

Mark Tarchetti

Mark Tarchetti

Founder, Alchemy-Rx | Nantucket, Massachusetts

Mark Tarchetti founded Alchemy-Rx in 2019, building the firm around helping brands grow, supporting household name brands and leading private equity firms. Mark has spent nearly 30 years in consumer products, with 21 years in some of the world’s largest corporations, including as Head of Strategy at Unilever and President of Newell. He has worked on over $40 billion of M&A as both principal and as an advisor.

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