Think to Sell Your Business: Is It The Perfect Success Formula?
https://massimodami.systeme.io/successformulafree
===============
“I sold my business” is a magical phrase for entrepreneurs. It conjures up of
pictures of wealth, leisure and exciting new challenges. For many entrepreneurs,
it’s the goal from day one.
Take it slowly, with planning, strategy and guidance. Each step of the process
can add value to the company, and get you closer to the finish line. Perhaps
you’ve planned it from the beginning, or maybe you’ve taken years to decide.
Somewhere down the line will come the time to sell your business, and you want
to make sure you come out on top.
“Selling might not be everyone’s objective when they’re starting out, but it
should be” says Ned Minor. Mr. Minor is a transaction attorney in Denver, and
the author of “Deciding to Sell Your Business: The Key to Wealth and Freedom.”
It seems eventually, every business owner leaves their business either sitting
down at a deal table or feet first on a stretcher.
The idea of working until your last breath is not uppermost in our minds when we
start out on that exciting roller coaster ride known as “entrepreneurship.” But
if you aren’t already planning a more graceful exit, you may come out on the
short end of the stick.
When starting a business we’re usually so busy with the details involved in
making it an eventual success that selling out is the furthest thing from our
minds. But the day you start building should be the day you should start
designing your exit. It should be the ultimate goal of your success.
Many entrepreneurs are successive business builders. The fact that they sell one
business doesn’t mean retirement for them, it just means the opportunity to
start another business that has been lurking in the back of their minds. In fact
many entrepreneurs enjoy the building up of a business almost more than the
profitable success it becomes.
What does a saleable business look like? It’s saleable if it’s “scalable” says
Minor. There are small-and-steady businesses sold every day, but the big bucks
come looking for a business that has huge growth potential.
-------------------------------------------------------------------------
Push Your Limits (guide) - free access asap, CLICK HERE
How To Push Outside Your Comfort Zone
CLICK HERE ---- Reach us on Linkedin
Provide all your clients the benefits of protection, privacy, control of
assets within the Trust.
-------------------------------------------------------------------------
( ads) - contact us to Protect Your Assets ** Free consultation **
Every buyer thinks that he/she is smarter than the seller, and that they can
double or triple the present business it’s doing. A business will fetch the best
price only when buyers believe they can take advantage of significant future
growth potential.
Selling a company’s future upside however, means proving your
previous growth and validating your future growth strategy. You should start
with 2 years of audited financials to backup the historical growth. Then be
prepared to explain your business strategy and how it fits into the overall
market.
Be it through acquisitions that you’ve grown, then show how many more
acquisition targets are still in the market. If through new product development,
be prepared to give the details of your R&D pipeline and your ideas for future
products.
Now as for buyers, there are two types. There are “financial buyers” who will
typically pay a lower price because they have a fire-sale mentality. You need to
find the strategic buyers out there, and paint a picture for them. Show them a
great customer relationship, a great piece of intellectual property, an
advantage in time to market, or a key employee. Show the strategic buyer how one
plus one equals three.
Then again, why settle for just one buyer when you could have two? Having
another buyer in the wings is a vital strategy in the sale process. Having a
strong and visible alternative makes any acquirer sit up and take notice. There
needs to be tension to the deal. Each side wants the other to think that they’re
about to walk away; it’s the tension that gets the deal closed.
The best buyers are large, high-flying public companies with broad, strategic
agendas and cash to spare. Selling to a public company also has other advantages
and tangible benefits. Many transactions leave the seller with a fistful of
stock, or worse, a long-term payout.
A publicly traded acquirer makes an eventual cash payout more assured. Be sure
to make your business sale more than a sale of your personal network and
capabilities. Make it look like it’s worth the asking price, especially if you’re
planning to leave after the sale.
Build a strong management team that can carry on when you’re gone. A team with
clear policies and procedures, and a broad customer base which are the
underpinnings of value. Your business should not just run without you, but be
positioned to grow without you.
Make sure your key employees are given incentives to stay on after you go, and
make sure you communicate with them during negotiations. It’s crucial to
minimize disruption.
Sometimes what the buyer requests during negotiations is mind-boggling and you
should hire some outside help to put it all together. Getting the deal closed
takes the talents of several people, and here’s a list of who you’re likely to
meet on your way to closing.
On the Buyer’s Side:
** CEO: The chief executive needs a vision of how the new company will fit into
the existing organization.
** CFO: This is the detail person, and a professional skeptic. In the long-term
view, he/she will take the heat if reality doesn’t live up to expectations.
** CPA: The buyer’s CPA (or accounting firm) will validate the seller’s numbers.
Don’t be surprised if the CPA doesn’t argue for a lower purchase price based on
historical profits. These are the “bean counters” of the deal.
OK.
On The Seller’s Side:
** Investment Banker: He/she is a professional “quarterback” keeping both teams
moving toward the goal. He keeps one eye on the sale price, and the other on the
strategic best interests of the business owner.
** Transaction Attorney: He’s the referee – there to make sure no one gets hurt.
The transaction attorney’s focus is the sale contract, but he/she can also
handle communication with the buyer.
** CPA: The seller’s CPA should be advising the seller on the personal tax
consequences of the deal, and how to handle the after-tax proceeds.
And you thought it was going to be easier to sell it than to start it, didn’t
you?
-------------------------------------------------------------------------
We Help Entrepreneurs to Globalize --
https://massimodami.systeme.io/successformulafree
CLICK HERE - Reach us on Linkedin ----
ASSET PROTECTION - website
Provide all your clients the exclusive benefits of protection, privacy,
planning and control of their assets within the Trust.
-------------------------------------------------------------------------
Do you know One of the Best SECRETS to build a successful business?
Write down this secret asap: "Create Connections with People ".
....apply the secret to your business :-)
** the first joint venture with my friend Paul made $87,500+ in less than 1
year, without paying a dime in advertising.
Over 40 MILLIONS clicks delivered to our customers. Zero cost per click and we
used a free website template ( domain is EOLTT .COM ) ---- The simple
website still deliver clicks every day on autopilot without a single investment.
** the second connection with Giacomo Bruno made $110,000+ in 1 year, without
paying a dime in advertising.
We built a terrific product in 2 months -- in return I got amazing
VISIBILITY in Italy starting from zero ( zero advertising! ).
My brand and my business group " Gruppo Freeperclick" are real results of
the amazing connection with Giacomo.
** Build giant mailing lists of subscribers that follow you ( in
some lists I have 21,000+ subscribers ).
Mailing lists are a very important factor to create excellent connections
with your customers - it means THE LIFE of your business.
Remember: your success depends by connections with people.
DO YOU NEED
HELP?
FREE access now: Push Outside Your Comfort Zone --
https://massimodami.systeme.io/successformulafree
Get Help asap with a special Joint Venture -
https://www.facebook.com/groups/1682318595366818
Automate all your actions with The Best Traffic -
https://cutt.ly/enZqCcS
Follow me on YouTube -
https://www.youtube.com/channel/UCMQInR5_aP5DymWEhPbugCQ
Do a connection on Instagram -
https://IGMoneyTree.com/massimodami
Education online for business -
http://www.education-online-life-teaching-tool.com
-
