06 Jun Around the Web: A Week in Summary
A recent article from Business 2 Community entitled “How to Prepare Your Business for a Top Dollar Sale” explores best practices when planning for the sale of your business. The author discusses the following key points:
- Know Your Worth – the importance of an appraiser
- Prepare Your Finances – compiling financial statements, tax returns, etc. and reviewing with your accountant
- Get the Timing Right – factors that determine when is the right time to sell in order to maximize your chances of selling and selling price
- Gear Up Your Marketing – the importance of the first impression
- Expand Consumer Base – why diversifying your customer base matters
- Solidify Your Systems – putting in place an operations manual, efficient operations and a strong management team
A recent article from Divestopedia entitled “Neutralizing the Due Diligence Grind” explains how any acquirer will go about conducting a due diligence investigation before they enter a definitive agreement. The person that is acquiring will gain access to your company’s information and with these findings, the price of your business can be significantly reduced.
It is important to hold bidders to their valuation assumptions. Every first impression is based off incomplete assumptions. It is also important to provide coherent materials for potential acquirers. This means having reliable fact based materials and personnel to respond to requests. Also, having a quick turnaround and answering questions thoroughly establishes trust and a confidence with the bidder.
It is important as the seller to show the skeletons of your business to the potential bidder as well. Every bidder is practicing due diligence to ensure they are getting the best deal and that everything is taken care of legally. It is important for you as the business owner and seller to not let due diligence drag on.
A recent article from Forbes entitled “The Five Most Important Things to Know Before Selling Your Business” tells us five important questions business owners can focus on when preparing to sell and how you as the owner can increase your chances of being happy with the outcome. Focusing on the following questions can create a sense of certainty and confidence in the process.
- Is this valuation correct?
- Is the timing right?
- Are you prepared to answer questions?
- Do you have a clear cut plan for the future?
- Are you emotionally ready?