Prepare TODAY to EXPAND or SELL TOMORROW | 5 STEPS TO INCREASE YOUR VALUE
As a business owner it is difficult to find the time to think of the future. Leading and managing a business is so intense and demanding, that in our experience, when business owners are ready to sell, they are ready to move forward.Surely you heard of needing extra time to get your business ready, but statistics show that a large number ignore that thought. When they make the decision to sell, they are faced with multiples that feel unreasonable and possibly insulting. Worst case scenario, AN ESTIMATED 60% OF BUSINESSES WILL NOT BE ABLE TO SELL AT ALL. It is also no secret that a lot of baby boomers are going to want to sell their business in the next few years and if you want to be part of the 40% group, you want to take some measures now to differentiate.
Knowing what a buyer is looking for and where they see the value is often different in how CEOs run their organizations. However you slice it, time is an important factor. Allow adequate timing and you will be in a far better position to negotiate and differentiate. Leaving money on the table is not a smart option as this may impede your retirement plans.When the time is right or the opportunity presents itself, you will have all your ducks lined up, eliminating altogether time consuming hurdles or deal breakers. Should you not plan to sell, you have just increased the value of your business and are in a much stronger position to make an acquisition or form a strategic partnership. Similarly if you want to expand the business organically, you would want to consider an optimal capital structure and our 5-step process helps you get there with the right documentation. Our methodology allows you to take it forward at your own speed one step at a time.
The 5 Step Process
1) Create a good Growth Story
2) Showcase strong Operational and Financial Controls
3) Prepare for complete Financial Disclosure
4) Develop a Cash Flow Management Process
5) Evaluate and plan on your Management Strengths
Our RudiTuesday video goes into more details on each of the five steps and is complimentary. Included in our process is a comprehensive check list that looks at your business holistically. Our Go|No Go methodology also takes a look at non-financial constraints that may need to be mediated or settled, another important time factor.
Our work with you has a different purpose than that of an M&A Advisor or external advisor. We help you get your ‘house’ in order as your TRUSTED INTERNAL ADVISOR and once you are ready, the M&A Advisor helps you position and sell the business, a very important function for a successful exit. We work with you with highest confidentiality, discretion and at your own pace.
Remember, CEO distraction is real whether you are in the process of expanding or selling. Getting off course is easy and can be extremely costly. We are at your back, help you stay focused, understand the buyer’s mind and the demands of your M&A advisor. If so desired, we can support you beyond the preparation phase and represent your needs throughout negotiations.
Give me a call today! I would love to share with you more details on our 5-step process and answer any questions you may have. It’s easy, a phone call or a cup of coffee…..
