Studies have suggested that founders bond with their businesses in the same way that parents bond with their children. Unsurprisingly, preparing a business that you have built for sale is going to be difficult, complicated and may require a time-out or two. However, we think using Della can take some of the unnecessary stress out preparing for a sale.
A brief description of how you prepare a business for sale:
Selling a business is stressful and is not simple. If you are lucky enough, you can pick the timing and position your business in the most favorable way. You are in control.
After the start of negotiations, each day builds the buyer’s advantage. It’s in your best interest to have a shorter discussion and due diligence phase. As the phrase goes:
Time Kills All Deals
Half of the acquisitions I have been involved in during my career have had some type of red flag during the due diligence phase, and in many cases it killed the deal. This is often one of the worst scenarios for a CEO [time spend on outside consultants/loss of focus on revenue/ your real business]. My advice, make sure your legal and administrative affairs are as clean as possible before you start selling your business. The earlier you detect these issues, the more likely you will be able to resolve them commercially.
If you are in that situation, using AI is an affordable alternative to give you some peace of mind, and potentially save a lot of time and money, while increasing the chance of success of your sale.
How Della can help:
Della is an AI driven contract analysis and organisation platform that allows you to upload, sort and interrogate the documents that are essential for your business. We can help deal with some of the heavy lifting as soon as you open the platform:
- Organisation – Della can examine the contents of a document and sort these into categories to make handling large numbers of documents easier. Our AI assigns the documents into a series of convenient buckets (corporate, commercial, intellectual property etc..) so that you, and the advisers you will likely spend a lot of money on, know where they have to look to find the relevant documents.
- Sorting – Our AI will then go and extract more details from the documents like their specific type (NDAs, articles of association, employment contracts, etc…), the parties, the language, the governing law and various other points so that you can sort and filter your documents so that you can find the specific documents you need.
- Analysis – Once the system knows what the documents are it can then begin to use our playbooks to start looking through the documents to find some of the potential pain points and unusual features that can create issues when potential purchasers start the due diligence process.
Most organisations would benefit from better control and understanding of their documents. Della’s value comes from allowing a business to prepare for some of the questions that they will likely be asked in a due diligence process and give them the opportunity to address any of the points that might weaken a seller’s negotiating position before the DD process begins.