First Time Selling a Business?

I tend to spend a fair bit of time speaking with business Owners who, while great at making widgets, have never sold a business before. During our conversations, about selling their company, it is apparent they are a bit excited, a bit overwhelmed, a bit scared and a lot unprepared.

It is well known that 80% of businesses will not sell. They may not sell when the Owner tries. Or they never go to market to begin with.

SITUATION

Today I spoke with Jeff, an owner of a company that makes (fill in the blank) it doesn't matter what he makes. We have talked for a while and in my initial conversation I advised that he was not ready to sell.

Here are some of the challenges he faced:

1. Business was too small to be of interest to serious Buyers.
2. Too many staff, had 10 should be 6 - 7 based on gross sales and industry standards.
3. Buyers not interested in taking on the liability of extra staff.
4. New business efforts were sporadic at best.
5. He was covering the costs of his staff but not making as much money as a Buyer wants to see.

SOLUTION

I made some suggestions and in subsequent conversations assisted him to get them done.

Here are some of the suggestions I made:

1. Reduce staff by at least 3 before going to market.
2. Conduct simple but proven methods, using existing staff, to market consistently to his existing customer base.
3. Grow his annual sales while increasing his EBITDA.

LESSON

It's a great story but without real tangible results it's just a story.

Here are some of the results:

1. He is now growing the company profitably.
2. After reducing costs and gaining new business he can now afford to take money out for his retirement. Before selling.
3. He is ready to go to market and will likely successfully sell his business at a good price, faster and with less stress.

Schedule a free Discovery call or book a Coaching call with me and let's talk about you and your business. CLICK HERE