You Have One Chance to Get it Right...
Over 80 percent of business owners only sell a business once in a lifetime. The typical business owner has invested substantial money, time and energy into building his or her company. The owner’s company typically comprises in excess of 80 percent of an entrepreneur’s net worth, thus the financial decisions involving the sale of his or her business can be some of the most important an owner may ever make. When to sell, how to sell and to whom? The answers to these questions will make the difference between maximizing the value you receive from the sale of your business or leaving money on the table.
When to Sell
Timing is everything. You hear that phrase often, and it’s especially true when it comes to the sale of a business. The company’s lifecycle stage can have a great impact on value. Current market conditions, the quality of your management team and the firm’s future growth opportunities all affect value as well. What is the current and projected size of the buyer pool, the availability, and cost, of funds and the number of other sellers trying to attract buyers? These are just a few of the many considerations in determining the optimal market timing to sell your business.
How to Sell
Every business is unique, and each one requires a custom approach for completing a sale at maximum value. Wise initial steps include performing a detailed and accurate financial assessment of the company to determine its current market, and potential, value to strategic buyers. The business must be “packaged” or a Confidential Information Memorandum created that presents your firm in its best light, illustrating weakness as opportunities and demonstrating future growth opportunities for the firm. Other portions of a successful selling process involve steadfast determination and implementation of a proven systematic technique for positioning the company and executing the sale. One key to a successful sale under the best terms and price is creating an auction environment with strategic and aggressive buyers. To learn more about IBG’s proven tactical plan to optimize business transactions, please see Seller Services.
Choosing the right team to handle the sale of your business will have a significant impact on the success of the transaction throughout the process. An experienced deal team will:
- have a firsthand understanding of market conditions
- be able to make an objective assessment of the business
- be skilled at preparing a targeted implementation plan
- present your firm in its best light in a controlled auction environment
- manage the process to your maximum advantage, effectively and efficiently
- provide expert advice on the process, strategies, actions, and decisions
IBG’s highly experienced partners and associates have utilized the firm’s proprietary process to complete more than a thousand transactions over nearly three decades in the market. Using proven methodologies, the national IBG team of experienced advisors delivers maximum results and a smooth sales process when it is time to sell your business.