How To Get The Most For Your CompanyPosted: January 22, 2013
This past week, I hosted an event featuring a presentation from Ross Campbell and Stuart Morley, Managing Directors of the MBO Group Inc., entitled “How to get the most for your company – a buyers perspective”. The presentation highlighted some of the issues that drive the valuation of a company from a buyer’s perspective.
Whether you are planning on selling your business in the near future or 5, 10 or even 15 years into the future, you’ll need to prepare your business for sale and part of that is assessing and evaluating your business as it stands today. As a business advisor to SMB owners, I spend a great deal of time talking about potential acquisitions and I’d like to share with you three tips to help you set the groundwork for getting the best value for your business when it comes time to sell.
- Start the dialogue
Spend some time thinking about who might be interested in buying your business. Think about local competitors, outside peers and your current management. Once you’ve identified an interested party, open up the lines of communication.
- Make yourself obsolete
Most entrepreneurs have direct involvement with their key customers and while this is great while you own the business, when you are trying to sell it, buyers will be worried about losing some or all of the customers if they were to buy your business. So create a framework for your business in which you become obsolete so that a new buyer could run your business without you at the helm.
- Make sure your business follows documented processes
Part of growing your business and allowing for you to become obsolete is making sure your employees know what to do. Document all your processes so that you allow your employees to function without you and make decisions that reflect your values and best practices. Document everything from the process of how to send emails to accounts payable.
How About You?
I am always interested in hearing your stories. Are you considering selling your business? Have you thought about what you’ll say if a company calls asking you if your business is for sale?
I look forward to hearing your stories in the comments below.