When searching for info on how to sell my business, I realized that a successful strategy requires active portfolio management and a well-developed divestment process. Here is what I found:
So, you will have to start by identifying the professionals who can help you and, if necessary, create a sales team. In some cases, a good broker may be enough. It is very important to work with a specialist in selling business because they have a wide range of specializations, so as to help you stay above the problems and avoid losing value. From helping you understand the potential risks and benefits of a sale to supporting you in minimizing impairment, specialists will assess your situation and support your trading position so that you maximize your capitalization price and execute the transaction with minimal disruption of the remaining business operations.
An integrated team of specialists will help you focus on key questions in the critical stages of the planning and execution of the divestment.
- Portfolio strategy: How do I maximize the value of shares?
- Exit options: What are my strategic exit options so as to maximize the value of the shares?
- Preparing for the exit: How do I prepare the business for the exit?
- Making the transaction: How to complete the transaction at a favorable price?
- Pre-contracting: Am I ready to complete the transaction?
- Post-contracting: How do I capture the value created?
When you sell your business, you will usually go through these steps:
- Analyze the business to find value points.
- Create a financial presentation that shows the history of growth and the potential of the business.
- Approach potential buyers
- Meet with interested buyers, so that you can organize financial presentations.
- Negotiate the price. In principle, you will reach an agreement. You appoint lawyers to represent you by agreement.
- The buyer examines the company to make sure they know what they are buying.
- You’re finishing the deal. This is the day when documents are signed and money and assets are exchanged. Lawyers will take care of most of the process.
- You manage post-transaction activity. You will work with the buyer to announce the takeover of the business.
This whole sale process usually takes months, but can continue for years. And you may have to go through it several times, if the initial transaction fails.
Remember that the sales process will vary depending on your industry.
Advisors are essential to successfully complete a sale. Many people who sold their businesses will be more than willing to meet you for a coffee and tell you about their experiences. They will be able to share what worked for them, what they wanted and how the counselors really helped them. But you may also have an idea of who is available in the market for a business like yours right now. These short conversations can be incredibly valuable.
From finance and human resources to law and taxes, surround yourself with mergers and acquisitions experts. You can benefit from their enormous combined experience to make sure you don’t make too many mistakes.