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Making a decision to sell your business can keep you up at night with a lot of questions:
How do I know what's a good offer?
How can I reduce the risk of my biggest asset being undervalued?
Is there a way to ensure I'm ready?
There is a way to get answers to your biggest questions, ensure you know what's fair, protect your legacy and prepare your business for additional, greater value at the time of sale.
Preparing for a Successful Exit - The Steps
Listen Up! 73% of businesses sold last year were scrutinized by buyers on the basis of "drivers" to discount a business's value, the same methodology we use in reverse to enhance your business value before the sale.
Could it be... just maybe... that we're on the right track to get you your best offer if we applied this to your business?
Find out your current business value. Understand how much a potential buyer will try to come down off that price before you get an offer. Spend time closing that discount gap. This can easily mean a difference in the millions of dollars depending on the size of your business.
Learn which drivers or "clusters" of drivers are strongest, which ones potential buyers could potentially discount - and then be prepared to optimize the weaker ones to up your chances for a solid offer closer to your current business value.
Strengthen your financial house. Make sure these drivers are as strong as they can be to show a buyer your profitable track record, and therefore assure that buyer they can reasonably expect this will continue in the future.
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Margin Advantage
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EBITA
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Recurring Revenue
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Financials (Books)
Detail your processes. Buyers are going to want to know what your process is for non-financial drivers and that they are not dependent on any one person.
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Sales & Marketing
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Market Share
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Human Resources
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Customer Diversification
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Innovation
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Brand
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Customer Satisfaction
Go away for 6 months; maybe not physically but ask yourself, "What would happen if I went on a long vacation? Would the place be able to carry on without me?" A buyer is going to ask the same thing, and nothing will ruin a deal quicker than if the business is too dependent on you. If you have doubts, if your key people can't make decisions, change things up.
Take a deep breath. Relax. We can help you prepare
for that monumental moment.
Here's what you need to know ~
You have options, and that's a good thing. There's no "one size fits all" transaction.
You can definitely up your business value before the sale.
It's called 'exit planning' for a reason. Don't make a decision one day and expect to sell for full value the next. Give yourself and your business time to prepare.
