A Solid Strategy for Maximizing Business Value When Selling

August 27, 2018by Nate Nead0

Is It Time to Sell Your Business?
Making the decision to sell a business after almost a lifetime of hard work can be a difficult and challenging decision. Selling a business is also a pivot point for the business as well as in your personal life. This means you want to make sure that you not only make the best possible decisions for the future and continuity of your business, but that you also take care of your personal needs.
The exit process can be extremely complicated. So, when the time comes to sell your company, working with a trusted professional will ensure a smooth transition and that you are getting the maximum value for your business.
Developing an Exit Strategy
The first step in selling your business is to plan an exit strategy. An official exit strategy provides details on all the relevant operational, marketing, and financial information about your business. It also includes other details, such as assets, liabilities, cash flow, major accounts, employees, market analyses and trends.
Developing an exit strategy is not only important for documentation purposes, but it will also serve as an official form of communication to key personnel within your business. Many potential buyers and investors will ask to see a copy of the business’ exit strategy so that they can get a clearer picture of your business’ operations, financials, and even why you want to sell your business. In fact, most buyers will ask to see an exit strategy before they will even consider investing.
The Sales Process
During the sale process, entrepreneurs are often presented with key financial and emotional decisions, such as developing a financial plan and continuity plan, which involve collaborating with various stakeholders. The process often involves M&A advisors, broker dealers, insurance representatives, attorneys, estate planners and many more.
Working with various stakeholders can be overwhelming; therefore, working with a trusted professional to help you form a well-planned strategic process is of the utmost importance. A strategic sales process can mean the difference between a smooth transition, one that results in the maximum value for the business, and one that doesn’t.
Finding the Right Buyers
Potential buyers could be virtually anywhere. Most buyers are either financial buyers or strategic buyers. Financial buyers only look at the numbers and are strictly interested in the return on their investments. On the other hand, a strategic buyer has a greater motivation to buy the business as they most often have a greater vision for it. As a result, most strategic buyers are willing to pay more, especially if the business has a successful track record, and is in a position to further grow and develop.
Working with a professional M&A consultant can help your business target the right buyers to not only ensure a successful and timely transaction but to also ensure that you see maximum valuation for your business.
Maximizing Business Valuation
Most entrepreneurs have a number in mind that they want to receive before selling their business. However, much like selling or trading in a car, there’s not much an entrepreneur can do to increase the value of the business other than dramatically cut costs or increase sales prior to beginning the sales process.
However, a professional and experienced M&A consultant can help target the right buyers and boost interest and competition in order to increase the chances of buyers offering a price that hits the mark.
The Advantage to Working with a M&A Consultant
Making the decision to sell a business involves a number of aspects and factors to consider, which can make the acquisitions and sales process complicated and confusing. However, by being prepared and working with a reputable M&A consultant from the beginning, you can rest assured that the decision to sell your business is one you won’t regret.
All in all, if you are thinking of selling a business, then it’s important to start the process early in order to ensure a strategic sales process, a smooth transition, and that you receive the maximum value for your business.
We are an investment banking firm that provides strategic advice, services, and solutions for business owners who are looking to sell their ventures. Whether you are looking for assistance and guidance in putting together an exit strategy or finding the right buyer for your growing company, we are that firm that can help. Contact us today for a no-obligation consultation.

Nate Nead

Nate Nead is a licensed investment banker with Four Points Capital Partners, LLC and Principal at Nead, LLC. Nate works with middle-market corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. Four Points Capital Partners, LLC is a member of FINRA and SIPC and registered with the SEC. Nate resides in Seattle, Washington.

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