When you are a successful business owner, it’s easy to think of selling your business as another business problem you can solve. However, many owners overlook the amount of work needed to get your company ready to sell while also continuing to manage the day-to-day. This often proves to be a larger obstacle than initially thought.
A great example of this is one of our customers who tried for three and a half years to sell his company for $5 million. Eventually, after not being any closer to selling the company along with a nudge from his wife, he allowed us to partner with him. In six months’ time, he ended up getting $7.5 million for his company. It’s not that business owners lack the skill; it’s all about available time, relevant experience and you should never negotiate your own deal.
Experience
When it comes to getting a good deal for selling your business, experience pays off. For most business owners looking to sell, it’s their first time. And much like you wouldn’t leave the accounting and taxes of your business to a doctor; you instead hire a CPA, someone who has experience and knows the common mistakes and how to avoid them.
Representation has proven time and time again to help increase the value of a business and avoid the liability pitfalls so common in due diligence. While you continue to run your business and make it successful, our team works on cleaning up your finances to get to your adjusted EBITDA, increasing your value.
Time
While you are trying to sell your business, your business continues to move forward and needs your attention. We only have so much time, and if you are focused on trying to get a good deal for your business, it’s likely some of the crucial day-to-day management processes you are skilled at will be neglected. One of the best ways to devalue your company is to let the month to month progress begin to decline.
When you are allowed to stay in your sweet spot, the business continues to grow and be profitable while our team is handling the due diligence and working to get you a deal you deserve.
Focus
A good business advisor starts with identifying what your true needs and goals are. When we get six, eight months into getting a good deal that fits your needs, it is easy for the business owner to become frustrated with the due diligence processes and all that occurs during that process.
As your advisor, we are there to remind you of the needs and goals agreed upon in the beginning of the process. It’s natural to grow weary of the process if it has gone on for quite a while, but you must remember the goal of why you started this process in the first place.
It can be enticing to see selling your business as another problem that has a solution you can navigate. However, the smart answer is to partner with a business advisor who has the experience, knows the common pitfalls and how to avoid them, who understands what your true needs are, and who can deliver on those needs.
