Potential buyers start forming an impression of your business operations the moment they approach your facility, and that impression is set well before anyone sits down, by how prepared, organized, and professionally managed the day feels. This Deal Note® builds on on-site visits covered in Deal Notes® 32 and 132.

That standard applies across whatever type of on-site visit occurs during a sale process with a potential buyer:

  • Management presentations and a facility tour – the “old standard,” but post-pandemic we see more virtual management presentations at the Indication of Interest stage, followed by a down-select to a smaller number of potential buyers, followed by a dedicated facility tour in person.
  • Facility Tour – As noted above, it is more common post-pandemics to have dedicated facility tours just prior to submission of a letter of intent.

Regardless of which type you do, the same preparation discipline should apply:

  • Plan and rehearse the day numerous times well in advance – don’t leave the details for the last minute.
  • Tidy up the facility, inside and out.
  • Have hot coffee and snacks on hand.
  • Make sure the chairs are comfortable and new(er).
  • If you’re presenting slides, test the AV equipment the day before and run a full rehearsal to make sure everything works.
  • Rehearse exactly what your team members will say and do.
  • Walk your facility with your banker beforehand a few times to brush up on timing and comments.
  • Communicate your preferred dress code to visitors in advance.
  • Have a clear plan of what you will tell your employees about who is visiting and why.
  • Start on time.
  • End on time.

These aren’t complicated steps, but they matter. We have seen many times over the past 25 years how much value is created when the facility looks good, and the tours are professionally managed. And we have seen too many times when the facility shows poorly and the day is disorganized; it can result in millions of dollars lost.

Plan early, rehearse often, and turn your facility tours into a value creation opportunity.

Have a great day,

Ryan Kirby
Partner