Make a Plan, Stan
Posted on February 11th, 2018
Paul Simon says, “There must be 50 ways to leave your lover.” There may not be quite that many ways to leave your business, but these are some of the more common:
Paul Simon says, “There must be 50 ways to leave your lover.” There may not be quite that many ways to leave your business, but these are some of the more common:
There’s a woman in my neighborhood, a busy mom, who had a stroke last year. The sudden, life-threatening illness came out of the blue for this young, healthy woman.
People buy, sell, and merge businesses for many reasons. No matter the motivation, due diligence is key to a successful sale. An M&A Advisor and DealCoach can help guide you through the process.
You made it. You’ve paid back your business loans and can run your company with just a line of credit. You’re profitable. You’re comfortable. And you don’t have to pay such rigorous attention to things like accounts receivable turnover and your particular accounting methods.
With the summer months coming up, DealCoach & Cornerstone Business Services’ Scott Bushkie wrote a timely article for the Green Bay Press-Gazette highlighting the importance of time away and how that enhances the value of your business. Whether it’s a family trip to a cabin or a long weekend for a child’s soccer tournament – that time away gives your management team a chance build trust and help you move the business forward.
There will be a learning curve, no doubt. But take those bumps in the road to learn and coach your team, and in the long run – when you’re transitioning out and are ready to exit – there will be more interest in your business.
Warren Buffet once said, “It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” I certainly think he’s right.
Working with our buy-side division, of course we understand that everyone wants to get a great deal. They want to find that perfect company and get it at a four-multiple when the market is running closer to six. We’ve seen clients walk away from perfect deals that hit all of their requirements, only because they wanted to buy below market.
As an owner, one way to maximize value in your business is to demonstrate that you’re not the smartest person in the room. In an ideal state, you work yourself out of a job, moving on to an advisory role while your management team runs day-to-day operations.
With that said, it’s equally important that your goals and values are in sync with your managers’. When selling a business, you want to show buyers a positive work culture in which team members work well together and make each other better.
What’s the value of a customer when it’s time to sell your business? The short answer: It depends.
During mergers and acquisitions, apparently inconsequential technological issues can materially impact the ultimate value of the business. So how can you improve the value of your business by driving up the value of its technology? These five simple tips help you navigate the process, but they don’t address more complex issues, like technical debt, undiscovered software defects, or privacy and security risks. Those issues require a separate evaluation and strategy.
I don’t just tell people to use a specialist and then go home and try to do things on my own. I just sold my house, and because of the licensing I need to sell a business, I had the proper credentials to sell it myself. I already have all the forms and a good relationship with an attorney who would advise me.