For sellers, getting ready for due diligence will maximize the financial position of a company as well as help it anticipate and mitigate any potential issues that might come to light during the process. How well-prepared a seller is heading into this process can make a substantial difference on exit timing and total value. Before getting acquired, future sellers can make the company attractive to buyers by preparing for an M&A event and heading off any red flags that might otherwise arise in due diligence and jeopardize a deal.
Bankers will often advise potential sellers on ways to maximize their valuation and prepare for the eventual transaction. They may encourage measures to increase sales and cut costs, and help the company develop a compelling story to communicate the company's position most effectively to interested investors. Bankers will also suggest organizing and consolidating key documents, financial statements, contracts, licenses, permits, and other relevant info that a potential buyer may require during due diligence to expedite the process.