Posts tagged with: sell well

Sell Well
Sell your company while things are going really well.

 

Makes sense. Sounds straightforward enough.

In this context, ‘well’ is a metric of success that will make ideal buyers take notice. What would make your ideal buyer/acquirer take notice? It could be any and all of the following:

  • Number of users on your ‘app’
  • Viral growth
  • New channels you are opening
  • Market monopoly opportunity
  • Recurring revenue streams
  • Happy customers
  • Caliber of channel partners
  • Growing diverse client base
  • Penetration of the marketplace
  • Operational excellence
  • Strong leadership
  • Strong corporate culture
  • Achieving revenue, profit margin,
    and growth goals
  • Measurable value drivers
  • Strong forecasts
  • Reduced risk
  • Maximizing value

 

 

 

 

 

 


  • Do you run your business on metrics that can be measured or do you run your business from personal experience?
  • Do you hit your goals for the business? Is your business a showplace to be proud of?
  • What more could you do so that your ideal buyer starts to take interest in your business?

Timing an External Sales Process

So when is the right time to consider selling the business? When should you launch an external sale process?

First, get clear on your exit criteria. If you don’t know your criteria that would make you say yes to a deal, start there. It’s time for thoughtful consideration of your exit criteria, dreams and goals in terms of:

  • Freedom
  • Flexibility
  • Control
  • Wealth
  • Liquidity
  • Timeline
  • Legacy
  • Dynasty

Second, monetize what you built. To sell well, you should secure:

  • the business
  • your team
  • your family and
  • your finances

before starting the transaction process.

Third, determine the best timing before committing to the transaction process.

  • What’s the best timing for you personally – 3 years from now, or 3 decades from now?
  • What’s the best timing for the business – is it already a turnkey operation, do you have a successor groomed, is the business at or approaching its peak?
  • What’s happening in your market – is the market expanding, is it consolidating, are there opportunities your company is in a position to leverage?

Changes and Challenges

Pay attention to personal and family factors, which impact us all. Any number of changes and challenges from retirement, health, or family obligations can compel a sale, even if, those same challenges (e.g., conflicts, litigation, shareholder diversity, disability, etc.) can reduce the value of the business or make the business un-saleable!

You Can’t Sell Well In A Vacuum

In addition to attracting your ideal buyer/acquirer, you also must prepare:

  • yourself
  • your company
  • your team
  • your family and
  • your finances

 

or you won’t be in a position to sell well.

That preparation, planning and forethought takes time, commitment, focus and resources to position your business to sell well. That’s time you can’t be tied to day-to-day operations of the business. It’s imperative that your team can shine hitting your numbers independent of you at the helm. It’s time you need to focus on the strategic imperatives of an ideal transaction and your successful transition.

To Sell Well, Surround Yourself With A Team

It takes a team of experts around you to get all the pieces done and done right. You want all-star specialists around you. Do not accept ‘dabblers’ in any role on that team. Check out the whitepaper: How to Manage a Gaggle of Advisors to Build Your All-Star Exit Team.

The lead-time investment in pre-transaction/pre-transition planning will pay handsome dividends when you sell well to your ideal buyer/acquirer.

 

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