How to Prepare Your Org for M&A or IPO

What you need to fix before due diligence, not during.

Most CEOs say they’re building for an exit.

But if diligence started tomorrow, most would be caught flat-footed.

Whether you’re aiming for M&A or IPO, the real prep starts months (ideally years) in advance. Not in the war room the week your bankers say “we’ve got a live one.”

Here’s what to fix before due diligence - not during:

1. Strategy: What Game Are You Playing?

If your strategy deck changes every quarter, or worse, lives only in your head: you’ve got a problem.

• Is your positioning clear and defensible?

• Do growth levers tie back to specific capabilities?

• Can your leadership team articulate this the same way you do?

A good acquirer or investor wants to bet on clarity, not chaos.

Fix: Run a one-day strategy alignment workshop. Align your exec team on the 3–5 bets that drive value creation.

2. Org Structure: Is It Built to Scale Without You?

Buyers and public markets don’t want a founder-dependent org.

Common signs you’re not ready:

• You’re still involved in most key decisions

• No clear successor or leadership bench

• Org chart doesn’t match how work actually gets done

Fix: Define decision rights and roles clearly. Empower your next layer. Create redundancy before someone else demands it.

3. Financial Hygiene: Stop the Excel Olympics

You don’t get points for improvisation.

If your:

• Revenue recognition is messy

• Customer contracts are inconsistent

• Margin analysis takes a week…

You’ll burn cycles in diligence, and possibly tank valuation.

Fix: Standardize key financial metrics and get a third-party review before due diligence starts. Build a “data room starter pack” now.

4. Execution Engine: Can You Prove You’re in Control?

The best companies don’t just grow: they show they can repeat and scale that growth.

If your teams:

• Struggle with OKR tracking

• Miss execution cadences

• Don’t tie projects to strategic goals

…it signals operational drift.

Fix: Run an internal “execution audit.” Check if what’s getting done matches what matters. Build a dashboard that tracks progress to your 3–5 strategic goals.

5. Culture & Communication: Do People Know Where You’re Headed?

Culture won’t show up in a spreadsheet: but misalignment will show up in attrition, Glassdoor reviews, and leadership churn.

Buyers and public investors notice.

Fix: Install a rhythm of town halls, feedback loops, and leadership behaviors that reinforce direction. Consistency here buys you trust: internally and externally.

Bottom Line

Preparing for M&A or IPO isn’t a moment. It’s a mindset.

Start treating your company like it’s already under the microscope.

One simple step this month:

Pick one area above. Run an internal alignment review. You’ll learn fast where the gaps are: and what a buyer would spot before you do.

And remember, whether you're aiming for an IPO or not, you definitely must aim to be IPO-able!

Stay aligned, stay ambitious.

-Harish and the ABD Team

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