Once your goals are defined, the next step is understanding how your business will be perceived by potential buyers. A Go‑To‑Market assessment provides an objective, high‑level analysis of what potential buyers will find attractive and what potential issues may exist. This early assessment sets expectations around valuation, identifies key selling points, and highlights any risks that should be addressed before going to market.
An independent advisor, often an investment banker, plays a critical role here. They bring market knowledge, comparable transaction data, and a buyer’s perspective to help you realistically assess where your business stands. This process is not about detailed diligence but rather about forming an informed viewpoint of how your company fits into the current M&A environment.
Bonadio’s Go-To-Market assessment covers the following 10 business and market attributes:
1. General: covers company size, growth rate, profitability, EBITDA margins, growth potential
2. Financial: covers variability of financial results, working capital needs, capital intensity, asset base, any foreign exchange / currency risk.
3. Industry & Market: covers the industry, market size and growth rate, market share, exposure to business cycles and political / legal factors, and addresses M&A trends in the industry.
4. Competition: covers amount of competition, nature of competition, barriers to entry, etc.
5. Management and Employees: covers the quality of management, reliance on owners, ownership transition desires, employee availability, and turnover.
6. Products and Services: covers product / services differentiation, broad vs narrow offering, reliance on key products, IP protection, and risk of technological disruption.
7. Sales and Customers: covers recurring vs non-recurring revenue, key customers & concentrations, reliance on distribution partners, length of sales cycle, customer retention.
8. Vendors and Supply Chain: covers reliance on key vendors and suppliers (concentration), input cost risk
9. Legal and Compliance: covers the regulatory environment, income and sales tax compliance, contract documentation and other legal matters.
10. Housekeeping: covers financial reporting (GAAP), EBITDA adjustments, organizational structure, documented systems & internal controls, diligence readiness.
When viewed from an independent perspective, the outcome of this assessment is an actionable roadmap that highlights a focused set of value enhancing initiatives and strategic recommendations to consider before going to market. It also provides a high-level view of the company’s potential valuation through the lens of potential buyers, supported by market based transaction multiples. Addressing these topics early not only boosts buyer confidence and contributes to a smoother, more favorable sale process, but also helps establish realistic expectations around potential transaction value. That said, it is important to remember that market participants ultimately determine what a business is worth. A competitive sale process can meaningfully influence that outcome, and having knowledgeable advisors by your side strengthens your position and helps drive higher returns.
Key Takeaways & Next Steps
Selling a business is far more than a financial transaction, it represents the culmination of years of dedication, personal sacrifice, and strategic decision making. By preparing thoughtfully and proactively, you not only strengthen the value of your company in the eyes of prospective buyers, but you also give yourself greater clarity and control throughout a process that can otherwise feel unpredictable.
If you’re a middle-market business owner, you should frequently ask yourself the question: “What’s my endgame”? Whether your exit is imminent or still years away, now is the time to begin thinking like a buyer and positioning your business for the future. Early preparation allows you to shape the narrative, address potential concerns before they surface, and ensure the business you’ve built is presented in its best light. With the right preparation, guidance, and mindset, you can turn your life’s work into a lasting legacy and a successful transition.
If you have any questions or are interested in learning more as you consider the future sale of your business, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
