Quick Tips:
- Put yourself in the buyer’s shoes.
- Don’t go it alone. Assemble a team of professionals, most importantly an attorney and an accountant that you trust.
- Get a professional valuation of your business.
- Make sure your financial house is in order prior to sale.
- Familiarize yourself with the entire selling process, from start to finish.
Recommended Resources:
- Read a book on selling and valuing a business.
- Visit the online marketplaces: BizBuySell, BizQuest and BusinessesForSale.
- Learn about business valuation: BizEquity, Business Valuation Resources, or contact a Certified Business Appraiser in your area.
- Find an intermediary: International Business Brokers Association, Alliance of Merger & Acquisition Advisors, M&A Source
- Plan an exit strategy: Association for Corporate Growth, Exit Planning Institute
That thought alone may be enough to keep you up at night when you decide it’s time to cash in on your years of hard work — as if there isn’t enough pressure associated with every step of the sale of a business. But there’s much you can do to prepare for the sale, and it’s not a bad idea to start thinking about it long before the day arrives.
While every transfer of business ownership is unique, there are some important questions that sellers should ask themselves and there is a common process that is used for the sale of most small businesses. The more you prepare, the more successful the outcome is likely to be. What follows is a brief outline of the process for small, closely held companies. Many of these principles apply to larger transactions as well. (You may also be interested in this blog post: Has the Economy Closed Your Exit Door?)
First, ask yourself three questions:
Can Your Business Be Sold?
Many elements of a business make it attractive to buyers. For example, does it have a solid history of profitability, a large and loyal base of customers, a competitive advantage (intellectual property rights, long-term contracts with clients, exclusive distributorships), opportunities for growth, a desirable location and a skilled work force?
Are You Ready to Sell?
Make sure you are ready, both financially and emotionally. Think about what life will be like after the sale. What will you do — not just for money but also with your time? Many business owners suffer real remorse after handing over their business to a new owner.
Here are a few indicators that it may be time to move on:
Posts
Without a doubt, the most difficult customer value model that a supplier will build is its first one. Indeed, gaining a comprehensive understanding of the value of a market offering in a particular customer setting may appear monumentally difficult. But it can be done. The first step is putting together the right kind of value research team. The team should include people with product, field engineering, and marketing experience, and two or three forward-thinking salespeople. Having salespeople involved at the start is particularly important.
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