You’ve Decided it’s Time to Sell Your Business
I have been very fortunate to work with incredibly talented and thoughtful individuals on both sides of the transaction and continue to learn how to improve the process. The next two posts will share some of those experiences and perspectives on the do’s and dont’s that may be helpful as you seek to maximize your outcome.
Do #1: Make sure you find a qualified buyer who shares your fundamental life values. This is very important as it has an impact on everyone associated with your business. Your customers need to be treated with respect and dignity as do your employees, vendors, advisors, and, of course, yourself. This alignment creates an atmosphere of trust and respect that is critical to operating a successful business and for negotiating a fair and equitable purchase agreement.
Do #2: Ensure the prospective buyer has the financial wherewithal to execute the transaction. This is critical because the ability to maximize your payout over time is dependent on the buyer’s ability to scale their business and deliver on increasing the average revenue from the acquired customers.
Do #3: Find a qualified buyer who has a broad and deep technology portfolio and has a proven track record of delivering added value through extended products and services. Look for a buyer who has a structured and experienced sales organization that is focused on exceptional customer care reflecting the culture of the company. This reduces potential customer churn and extends the lifetime value of the acquired customers.
Do #4: Find a qualified buyer who has demonstrated positive relationships with the software publishers and vendors that represent your customers’ solutions. This has a long-term effect on the customer service and satisfaction levels for your acquired customers.
In summary, these “do’s” have a direct impact on the business drivers that determine customer satisfaction which is tied directly to increasing the average annual revenue per customer which, in turn, impacts the seller’s total earnings.
Make sure all these things are in place before you say, “I do.”
My next blog will focus on important “do’s” and “dont’s” as it relates to “You and/or Staff Continuing to Work for the Buyer” and suggestions for completing effective “Due Diligence.”
If you have any immediate needs or want to schedule a meeting to discuss your specific business, please don’t hesitate to email me today.