Business rankings » Blog Archive » Five tips and Five Steps to sell — or not to sell my business

Business rankings » Blog Archive » Five tips and Five Steps to sell — or not to sell my business

July 17th, 2010

Tags: Business

Have you thought seriously about selling your business really do not know where I should begin. Have you heard some horror stories about the various sales processes, with an advance payment and settlement for less than what you really want, but people get so far in the process that do not turn back They. You're not really big enough for one of Wall Street bankers and investment in rental does not have any serious mergers and takeovers.

Sounds familiar? NotDespair, you are not alone. Most small business owners with revenues of $ 5,000,000 to $ 100,000,000 up to face the same questions and doubts. Hopefully these tips will help put your thoughts and initiatives to promote and provide a direction, what actions you can take or do not want.

Tip # 1 – Preliminary assessment of business value

Safe is the key word here. Most owners have an idea of what their value and the company isWhat would they settle for when they decided to sell. Unfortunately, statistics show that most owners of an opinion of value, which is usually higher than what the market will bear. So before you go and hire that M & A company or an attorney to go to New York for the seminar on the sale of your business you talk with your tax, a favorite place that you know, the consultants have done or business with your bank or you. Do some 'networking and you can see that you receive a provisionalEvaluation of a much smaller fee ($ 1,700 to $ 2,500 made). This at least gives you a platform, value, and some knowledge to determine the next steps. (Rick@ceostrategist.com E-mail for more information on a preliminary estimate using the methodology of the field)

Tip # 2 – Create a Strategic Business Review Performed

Conducted a preliminary assessment and is comfortable enough to take the process to the next level. This means that you must have a strategic evaluationcompleted. This can be done by you as a contractor and of each family and confidante in you. However, it is suggested to have a stranger that assessment. As the owner of the field work on a daily basis, it is often difficult to see the wide range throughout the organization. You just need to know how your business process is ready for distribution. There are many factors to explore the availability before making that final decisionsale. Failure to go through this evaluation and to correct or compensate for any problems uncovered can cost hundreds of thousands of dollars in sales process can. You can make an assessment of strategic management consultant to conduct any number of wholesalers. Prices start from $ 5,000 to $ 15,000 range for this process. You can search for reviewing the assessment, decides that the time is not fair value for shareholders of shares by the company to maximize sales. It couldmore sense to grow through further evaluation of the company outlined the following recommendations.

Tip # 3 – Who are my customers?

Had an evaluation with lipstick on the pig revealed (fixed all the problems) and has now decided to take her baby on the market. Do not jump right into M & A arena and hire the large mergers and acquisitions firm. The chances are very good that you may already know that the buyer or buyer. It 's your biggest local rival, one ofnational company, one of its suppliers or customers in search of vertical integration, or it could be one of several investment groups. Do your homework before paying for the type of commission you pay at the end even with a smaller M & A firm commit. Discover the Internet and companies looking to sell or companies who are looking to buy. Talk to your club. You may end up with several interested parties, are pushing to pay the price without the high commissions. (DiOf course, the minute you start to discuss a sale with any potential buyer be sure to engage its legal)

Tip 4 – I'm ready to sell, now what?

If you do it yourself because you know the buyers of a number of interested parties, or decided it was too much effort and seek professional help M & A, the document next step in creating a comprehensive, confidential Strategic Business Review Report . This document describes in detail your company. It includes a new versionFinancials. (Finance, that Adjusted EBITDA increased realistic remove privileges of ownership were not, the cost to a new owner will be) EBITDA is profit before interest, taxes, depreciation and amortization. Acquisitions are often a multiple of EBITDA.

If an M & A Law Firm you represent, the preparation of a confidential profile page for acquisition opportunities shows, without revealing the name and location of your business is essential. This profile is used during thebuyer / investor the contact phase.
At this point, make sure the company you get your company match and more importantly, make sure you are comfortable with them. Factors to consider when selecting an M & A firms are:

o How many companies have sold in wholesale

o How many companies approach the game or the revenue stream for your company.

or references, and you must make sure they are granted

or what they specialize Industriesin

o What are the dimensions of their activities? If you do not want to be a small fish in the sea, but also do not want to be a whale in a pond.

o How many active buyers who have qualified in their database? There should be hundreds if not thousands.

How many private investment funds that are linked to O?
.

Tip # 5 Basics for the completion of a sale.

How things are exciting and frustrating. Again, the procedure applies regardless of who sells yourEconomy, but above all the steps used by a market M & A business in your company.

Step # 1 BUYER targeted research

Targeted research is buyer from a database of potential buyers and mutual funds investment. If you use an M & A database will more than likely be more than 10,000 in number. A list of potential buyers will be the synergistic result of this research. This list will be reviewed by the owner of apparent discrepancies or refuseOwners personal concerns of someone on the list. A second formal evaluation equipment and property valuation, a desirable option at this point covers.

Step # 2 Original purchaser CONTACT DATABASE & Placement

Buyers and investment funds are targeted by e-mail that includes the profile visible contacted. In conjunction with the above activities, the company is listed on the score-Merger & Acquisition database online, presents the opportunity to acquiredatabase registered buyers. Interested buyers and M & A intermediaries typically respond via email. . Personal follow-up to identify potential buyers interested in information strategic Business Review Report is carried out to determine interest.

Step # 3 CONTACT willing buyer and a follow-up

Upon receipt of a report approved Non-Disclosure Agreement, the Strategic Business Review Confidential concernedBuyers / investors. M & A company representative or your relationship with customers and stakeholders to provide guidance about necessary. be the credibility of the Buyer (the ability to purchase approved) must at this point. A buyer is willing visit, see the facilities and talk with the property. This visit can be arranged after hours, if the property is classified.

At this point, discussion and advice must, visit the site of preparation and waiting for buyersPreparation of program of the visit of the purchaser with its objectives. (Presentation of administration, travel services, to provide additional documentation is required, buyer-customer interface and guidelines for reflection and other relevant information, a positive image and successful meeting.)

Step # 4 Get a Letter of Intent

The confirmation of the buyer (s) 'interest in a transaction aprons and obtain a letter of intent is the number one goal. Ideally, multiple offerspresented for comparison purposes and to obtain the best price and terms is to maximize the value of the sale. You can, of course, not obliged to accept any offer is made. A letter of intent is a contract under which the buyer takes on the information provided business says a suggested retail price provided all the details and accuracy and gives financial due diligence by the buyer.

Their representatives should interface with your professionalAdviser (CPA, attorney, financial planner, etc.) in its assessment of the proposed transaction is required. Guidance should address on the negotiation points and made available to other issues, such as may be necessary.

Step # 5 Due Diligence and Deal conclusion

Support should be given to prepare for the buyer due diligence. Try not to conceal or hide dirty laundry. Own and show what has been done to put it in the laundry. Honesty is important.In general, the process is mainly financial. However, the concerns of workers and other problems. Their representatives should be available, or to quote during the process. Thorough inspection of inventory and demand management are an essential part of due diligence. Experience tells us that the value of capital is always an obstacle. What is old, sick and dead inventory value? Be ready for further negotiations. Do you have a heart to heart with your advisor. Do sure to have a comprehensive understanding of your goals. Note that although most good lawyers are involved decision makers, some failure.

This process seems more complicated than it really is. The real difficulty lies in the first decision, whether or not you should sell your business o. Although this article shows that the possible sale of your own company, and it is, make no mistake, it is recommended that you try to own the sale> Shop without adequate consultation with professionals who know the company, mergers and acquisitions.

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Thanks To : Medicine/Cosmetic/Medical Equipment Company Electrical Company

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