10 minutes on Google or a lifetime's business experience?
Subtitle: Planning to sell your business in the next 3 years?
I went to see a prospective client - a successful business owner looking at various "next level" options. These included selling the enterprise. To be helpful - and at no cost to him - I gave him a version of the "Selling a business" check-list similar to the one I am writing about now. We had a long meeting and after reflection I sent him an email identifying a number of useful strategy options requiring detailed analysis. But ... he thought my proposed fee rate was unacceptable and didn't proceed. His feedback on the check-list? "It was nothing that couldn't be got by 10 minutes on Google". Ouch!!
Now for what I really want to say:
Be prepared! That was the old scouting motto (and perhaps still is).
In the normal course of business "being prepared" helps us take advantage of the opportunities that present themselves. But as with all such aspirations it is easier said than done.
Most business owners will accept that "one day" they will sell their business - but in the meantime there's work to be done. So dreaming about disposal is pretty much a waste of time - but I am sure that planning for it is another thing entirely.
Business disposal experts (including accountants and solicitors) will confirm that optimising a business for sale takes thought, planning and action. The key word is "optimising". That applies to the price achieved as well as the process of selling.
If you are within three years of a possible sale now is the time to start "thinking, planning and acting". For ambitious start-ups that may be "Day 1" - but for most of us it is an age or health related decision.
I have prepared a short check list which I hope will help you.
The value of most businesses is closely related to its profitability. Maximising profits of an ongoing business is likely to involve different decisions to increasing short term profits for a sale.
The process of selling involves many factors but one is the "due diligence" (DD) or verification that will be required by any serious purchaser. There are many ways you can build up a "DD" file to ensure that it can be done swiftly and without interruption to the day to day business that must continue until a deal is done.
The notes you can download here are a summary only and support from an experienced adviser is, in my view, essential. If you want to discuss how I might help you, just contact me - or tweet any comments to @CliffPeat.
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