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The Event: Maximizing Your Value Requires Planning and Execution

By Dan McHenry

Many entrepreneurs have spent a lifetime of building, toiling, and sacrificing to get to this very moment...the transaction event.

Since football season is upon us, I hope that you do not mind if I sprinkle some sports analogies into this conversation.

For those of you that are approaching this part of the PEO lifecycle, you have likely built a business with your sheer determination, perseverance and a quality team around you that has shared your mission and vision. But now that you are considering a transaction, you should consider this the “red zone”. There is a tremendous amount of work that needs to be completed before you should enter the red zone. This part of your planning process, if done well, you will increase the multiple and your “pay day” to cap off a storied career.

Before Entering the Red Zone

Selling your business is much like a football game; you have built your Team and over the years you have marched down the field diligently. The end zone (your touchdown) is the culmination of your life’s work therefore one must maximize the value.

Like football, preparation is key - you must prepare your business for a sale. What things should you do before contemplating a process to sell your Company? Once you have decided to sell your business, you have two choices: you can sell it “as is” or you can take the time to improve areas that need to be addressed to increase its value.

This often requires a pre-sale “to do list”.

The Pre-Sale To-Do List

At this stage of your preparation, it is important that you engage with a PEO Advisor that knows PEO operations as well as the intricate aspects of properly packaging and displaying your business for an optimal financial outcome. The first step would be to perform a Preliminary Assessment of the Business. Although there is a more comprehensive list of Assessment items, the following checklists can assist you in your preliminary assessment.

Step 1 – Perform a Preliminary Assessment of the Business

Legal Status:


Business Image:

Business Operations and Organization:

Products and Services:

Clients and Client Portfolio:

Step 2 – Commit to a Pre-Process Improvement Plan

For any of the items listed as a “2” (No) in the checklists above, analyze their impact to the business and whether they should be addressed. Your PEO Advisor will be able to assist you in this step of the process.

For each of the areas identified as a “2”, the following questions should be considered in determining whether the area should be addressed in a Pre-Process Improvement Plan:

Qualifying Questions on Whether to Add to Your Pre-Process Improvement Plan

Step 3 – Create and Implement your Pre-Process Improvement Plan

Although all steps should be carefully assessed under the auspice of a cost-benefit lens, Buyers today will have a very rigorous and detailed process and will leverage any areas of weakness in a manner to dilute your enthusiasm and confidence in the market value your business may bring.

In most circumstances, it is my recommendation that all areas of your business should be rehabilitated and strengthened for the optimal presentation and display.

Creating Your Pre-Process Improvement Plan

Step 4 – Preparing and Packaging Your Company For the Final Drive Into the End Zone

Once the areas for improvement have been addressed, this is when your PEO Advisor begins preparing your business to enter a sales process by:

Preparing and Packaging Your Business

Are You Ready for Some Football?

Football season is upon us. When it is time for you to finish the game with a big win, we can help you prepare for that last red zone march for the ultimate score.

If you are beginning to consider the planning for the Event, please give us a call for a courtesy consultation on what to expect in the sales process preparation and for an initial indication of value.

For more information, please visit our website at or contact me via email at

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About the Author

Dan McHenry is the Business Advisory Group Practice Leader at McHenry Consulting, Inc. and is a leading national authority on PEO profitability, business strategy, performance optimization, and transaction valuation.

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