Business owners hoping for a successful sale of their business often dive into the sale process without much thought. Neglecting pre-sale planning can diminish their chances of a successful sale, and even taint the marketplace for future efforts. Potential buyers expect to purchase valuable businesses that are properly prepared, and they don’t want to invest in false promises or flashy sales pitches.
Pre-sale planning for a business is an integral part of a successful exit or business transition. The following strategies can help you plan for a successful sale. This, in turn, can drive buyer interest and ultimately yield a higher sale price. An experienced M&A advisor should let you know about pre-sale planning because they want to ensure that you receive maximum value for your business.
Build a Process
Just as you created a business plan before starting your business, you need to establish a process for selling your company. A pre-sale planning process should identify your exit objectives, including when you want to leave and your minimum price for a successful exit. Your plan must also identify your values—the goals that extend beyond financial concerns. What do you want to do with your retirement? What is most important to you as you leave? What do you want your company to look like after your exit?
An experienced M&A advisor can work with you to clarify your goals for a sale, and help you determine what you want your life to look like when the sale is completed.
Create an Advisory Team
A successful exit typically requires outside expertise. Don’t try to go it alone. M&A advisors typically help owners prepare for the due diligence process. While this function is critical, it can also neglect other important aspects of exit planning, including identifying and addressing the owner’s values.
Consider assembling a team of experts who can help you with every aspect of planning. Better yet, hire an M&A firm who already has such a team in place. This can help streamline the process, and ensure that you won’t end up spending all of your free time managing the many challenges of selling your business. For many owners, managing a sale becomes a full-time job unto itself. With the assistance of an advisory team, you’ll free up time so you can get back to managing your business and driving value that can ultimately improve the terms of the sale.
Work With Outside Experts
M&A intermediaries are more than just advisors. They have specialized training to help guide you through each step of the exit, including exit planning. They have access to the tools, resources, and skills necessary to devise and implement a comprehensive pre-sale planning process. This can help owners avoid pitfalls and unpleasant surprises. It also supports an efficient process that saves time and money while increasing value.
Many owners do not understand that pre-sale planning is about much more than due diligence. By the time an owner realizes this, the process may already be well underway. M&A advisors are trained to manage the common obstacles owners face. They build a reliable process, lean on a trustworthy team, and assure owners that their expert insight and experience can see the sale through to successful completion.
The first step in working with Strategic M&A Advisors is to contact us to schedule a confidential, no-obligation (and no-cost) conversation at a time and place that’s convenient for you. This will enable us to learn more about your business and your M&A goals while explaining how we can help you achieve your goals.
About Strategic M&A Advisors
Business sales come in all shapes and sizes. At Strategic M&A Advisors, we can help you determine the most advantageous option for selling your business. We handle all types of merger and acquisition transactions, from outright sales to investment options to grow your business. The first step is an evaluation of your business and goals to determine the best path to get the results you desire. If it is the right time to sell, we will assist you in finding vetted buyers or investors and getting the best price and terms for your transaction.
Posted on behalf of Strategic M&A Advisors