Small Orthotics Company Takes a More Confident Step Toward Sale
The Challenge
When a Midwest custom orthotics company was preparing for owner succession and a potential sale in the coming year, the owner recognized that while the company was profitable and had just added a new revenue stream, it was lacking some crucial components, including a formal annual budgeting process, a clear understanding of profit drivers by service line and client, and credible financial projections. The owner lacked even the basic confidence that the reported financial performance could support a strong business valuation.
Our Solution
The owner engaged Springline to get the business ready for a sale. The team started by building a top-down operating budget, implementing monthly financial dashboards, and establishing a variance analysis that compared actuals to budget with management action items. On the succession and sale readiness front, the team normalized earnings to prepare for buyer scrutiny, connected the financial forecasts to valuation drivers, and created financial narratives to reassure potential buyers of future earnings.
Client Impact & Results
The owner was able to enter the succession and sale process with a newfound confidence in both their current performance and their future growth story. With a strong budget and clear visibility into profitability drivers and cash flow, they were able to make credible projections to support higher valuation discussions. And those clean forecasts and documented assumptions minimized surprises and accelerated the buyer due diligence process.
