By strengthening financials and clarifying leadership roles, a business on the M&A path boosts its valuation and sets the stage for future growth under new ownership.
Background
A regional construction and exterior services company had grown steadily for decades. When the owner began considering a transition, he engaged advisors to help prepare the business for a potential sale.
Challenge
Despite strong performance, the company lacked investor-grade reporting and had limited controls around job-tracking schedules. The owner also carried personal expenses through the business, creating uncertainty about true profitability for potential buyers.
Approach
Working with MGO advisors, the company improved its financial reporting by engaging MGO’s client accounting solutions team to clean up the books and records, conducted a quality of earnings review, and normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) by adjusting for non-business expenses. They also clarified leadership roles and documented operational systems to prove scalability.
Value to Client
The company entered the market with greater transparency, attracting strong buyer interest and a favorable valuation as potential investors and buyers had an increased level of trust in the financial reporting and leadership and employee structure. The owner rolled equity into the new entity, receiving help from both immediate liquidity and the opportunity for future upside as the business continued to scale under institutional backing.
Beyond valuation, the process provided peace of mind for the owner, new opportunities for employees, and confidence that the company’s legacy would continue under new ownership. The preparation not only delivered a successful transaction but also laid the foundation for future growth.
Position Your Business for a Strong Exit
If you’re thinking about selling your business — whether in the near term or years down the road — the steps you take today can make a significant difference tomorrow. MGO helps business owners prepare for exit by building investor confidence and creating strategies for long-term value. Reach out to our team today to start unlocking value for your future sale.