How EHTC Prepares Businesses for Transaction Success
Many business owners shy away from exit planning, especially if they’re not actively thinking about selling. Transaction readiness isn’t just about preparing for a sale, though. It’s a smart business strategy that adds value at every stage of ownership.
Why Readiness Matters (Even If You’re Not Selling)
There are many reasons to be transaction-ready, even if a sale isn’t on the horizon. According to the Exit Planning Institute, five unexpected events —Divorce, Disagreement, Disability, Distress, and Death—can force an owner to consider an exit. Expecting the unexpected and being able to prove your business’ value at any time is critical to maximizing outcomes, including purchase price received upon exit.
Even without a sale in sight, readiness offers real benefits:
Stronger financials: Buyers typically request accrual-based financials with clear, consistent reporting. Clean books are also essential for internal decision-making.
Operational resilience: Understanding key cost drivers like consumer and supplier pricing, insurance costs, and discretionary spending helps businesses pivot when needed.
Flexibility to seize opportunities: A surprise or better-than-expected offer may come your way. Readiness helps you evaluate whether an opportunity is truly at market value.
Reduced risk and surprises: Clean accounting and reporting reveal blind spots. You’ll be better equipped to manage customer health, supplier viability, and employment issues.
Added business value: The process of becoming transaction-ready inherently strengthens your business, whether or not an exit is imminent.
Chelsea Sheafor, EHTC Client Accounting Services Partner
Building a Strong Financial Foundation
Client Accounting Services (CAS) are an integral part of the transaction readiness process. Think of CAS as your financial “cleanup crew,” but with a strategic edge.
When a business begins considering a future sale, the path to success starts long before any deal is signed and requires a highly coordinated effort where strategic priorities align. Our CAS team helps clients get their financial house in order by ensuring records are complete, financials are clean, and processes are well-documented.
Our comprehensive readiness checklist includes support with:
Revenue recognition
Cost structure analysis
Balance sheet integrity
Inventory valuation
Forecasting
Internal controls
Identifying areas of improvement
Customer and product profitability reporting
This work isn’t just about tidying up. It’s about creating real value and a return on investment. A well-prepared financial foundation accomplishes the following:
Increases valuation potential
Reduces surprises during due diligence
Accelerates the Quality of Earnings review
Enhances buyer confidence
Collaborating on a Transaction
When a company does consider a sale, CAS works closely with our Transaction Advisory Services (TAS) team to prepare the models and documentation buyers typically review. This includes a Quality of Earnings (QoE) analysis, which dives into the income statement and balance sheet to calculate adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Understanding your adjusted EBITDA prior to going to market is crucial to a transaction. Because most buyers value a business based on a multiple of EBITDA, QoE analysis is a cornerstone of the sale process.
Engaging CAS early, then, leads to a more efficient transaction. With foundational work already completed, due diligence, QoE analysis, and identifying adjustments to EBITDA become smoother processes—allowing owners to focus on maximizing deal structure and strategic outcomes.
Our CAS and TAS teams have many years of experience working on Mergers & Acquisitions, helping business owners both prepare for sale and add value to their business. EHTC is a multidisciplinary and collaborative firm where experts across departments work together seamlessly with a central focus on the client.
Click to join Garrett Monroe, Sell-Side Director at Calder Capital, and Ryan McCaslin, Transaction Advisory Services Partner at EHTC, in breaking down why a QoE is critical for business owners at all stages of ownership.
Real-World Impact
EHTC recently helped a manufacturing business owner prepare for sale. Our CAS team cleaned up their accounting and reporting, and our TAS team worked with a local investment bank to identify suitable buyers. Because the groundwork was laid early, the owner and investment bank were able to provide potential buyers with the information they needed during the due diligence process and ultimately choose the right buyer. As an added benefit, working with EHTC allowed the owner to continue focusing on the business throughout the process and avoid any operational hiccups.
Contrast that with those who go it alone. Without advisor support, we’ve seen many situations where business owners become hampered with diligence requests, causing them to neglect day-to-day operations and risk declining profitability. Time away from the business can lead to lower offers or deals falling apart entirely.
Why EHTC?
EHTC is a premier full-service CPA firm headquartered in West Michigan, dedicated to helping businesses achieve their full potential through expert accounting, tax, and advisory services. Our proactive, team-based approach empowers clients with strategic insights and customized solutions that drive growth, enhance profitability, and build long-term value.
With a highly skilled team and leadership boasting over 20 years of transaction advisory experience, we deliver unparalleled expertise to both local and national clients. We specialize in financial due diligence, tax structuring, valuation services, and strategic value planning, providing the clarity and confidence you need to make informed business decisions.
What You Can Do Today
If you’re a business owner looking to add value and make better decisions for your business through clean accounting and reporting, we would love to connect with you. EHTC uses proprietary software to walk you through your current exit readiness, no matter where you are on your business journey.
Build Value Now for Long-Term Success
Transaction readiness isn’t just about preparing for an exit. It’s a smart strategy that adds value and organization to your business. Whether you’re selling, growing, or simply planning ahead, EHTC is your partner in success.
Written with the support of EHTC’s Ryan McCaslin, CPA, CEPA, Transaction Advisory Services Partner (ryan.mccaslin@ehtc.com), and Chris Gallagher, Client Accounting Services Director (chris.gallagher@ehtc.com).
