07-11-2025
Scaling up or selling your business?
I worked with the CEO of an engineering consultancy company to help him run his business more efficiently.
However, when approached unexpectedly by prospective buyers, the CEO realised he was not prepared to sell the business.
This true story shows that whether you wish to grow your business profitably or whether you wish to sell it, the requirements are remarkably similar.
Running your business more efficiently
His turnover had been increasing by over 20% year-on-year over the past 4 years and his team had grown significantly as a result.
To support prospects of further significant growth, the company needed to overall its internal systems and alter its ways of working.
Approached to sell the business
We made very good progress working together over a few sessions.
However, at that point the CEO was approached unexpectedly by a couple of companies interested in buying his business.
As he prepared for meetings with the prospective buyers, the CEO realised that he did not have the answers to some of the questions he had been asked, and he was lacking the data that had been requested.
Lacking historical and forecast data
While he had the financial data prepared by his accountant showing a steady increase of turnover in the previous 4 years, he did not have projections of turnover and profit for the rest of the year, never mind for the following years.
He put together a chart showing turnover for the previous years to which he just added sales to date for the current year. Without a sales forecast for the rest of the year, the chart gave the incorrect impression that turnover was dropping.
The consultancy business lacked management accounting data. The definitions of sales, costs and profit were not consistent. Accurate records were lacking, and the business did not have an annual budget or sales forecast.
The presentations prepared for the prospective buyers contained mostly qualitative intentions rather than plans and projections substantiated by robust data.
This exercise highlighted that the business did not have the internal processes in place, nor the minimum data expected by prospective buyers.
It also revealed that the CEO’s plans for the business were vague and had not been thought-through nor expressed clearly.
Preparing to grow or sell your business
Whether you wish to grow your business profitably or whether you wish to sell it, the requirements are remarkably similar:
✅ Having a team with the skills, experience and capacity to run the business effectively.
✅ Introducing and setting up internal systems to generate and share relevant and reliable data.
✅ Reviewing data regularly to monitor performance against forecast and take actions.
✅ Articulating and communicating the “why” and future plans for the business.
Need help?
I help CEOs of small and medium-sized engineering companies to prepare their business so they can achieve profitable growth.
To discuss your specific challenges and explore how I could help you, please use the link below to arrange a free 30-minute conversation.