Selling Your Company
“67% (say) I worry that my business will not be as successful if I’m not there.”
If you believe this as an owner, you just reduced your chances of selling to one in ten and your selling price by 50-90%. You can better your odds for selling success.
How to Sell and Exit HappySM
The three stages to your selling process.
- Organize to get a good selling price. Have proof of value buyers can believe.
- Give the buyer what they need to know to close the sale, and you get paid.
- Build a deal that works for the buyer and seller, so you get the last check.
Juggle 6 Jobs to Sell and Exit HappySM
The six jobs to work in the three selling stages
- Organize Your Company's Data and Documents, Optimize Value
- Gather Industry Specific Operating Data and Valuation Drivers
- Eleven 'For Sale' Steps to Follow One at a Time, No Skipping
- 22 Rules for Selling Success to Watch Constantly
- Over 75 Business Owner Selling Mistakes to Avoid
- And More than 1,000 Getting Ready To Sell Points Analyzed
These save you hours and simplify the job. And, you get a 150% better selling price on average by being read to sell.
Ten Rules for a Top Notch Business Valuation
My Professional Business Valuation Rules
- The valuation preparer recognizes your special situation and needs, and is a full-time valuation expert (not fill-in-the-gaps part-time work as a CPA, CFO, Banker, M&A, succession, strategic, financing, or other business consultant) trained, certified and registered by more than one group, and has more than 25 years of valuation experience and a history of constant analysis improvement.
- The valuator’s Curriculum Vitae and Work History demonstrates their training, experience history, and why they are a business valuation expert, such as professional credentials and court testimony. The valuator meets the requirements for formal Report Certification.
- They specialize in and understand valuing companies like yours. They answered all of your value analysis questions about your project and didn’t skip over parts. They also discussed how the report fits your described purpose and use.
- You know your fee, it is fair, and how it was set. If fees are low by comparison, evaluate their motivations. Is the cheap fee bait to sell other services? You only ‘get what you pay for’ is still true. In addition, did they give you a detailed description of your service with an option for changes, and required your approval before starting. You get a court ready report, if you approved a court ready report.
- The valuation process follows professional organization’s standards, ethical practices, and a deliberate process that checks each step before moving to the next. This limits self-confirming investigation and unconscious bias.
- The valuation professional standards, definitions and calculation approaches used match your company characteristics and purpose. Explained why what most call a “valuation” does not follow professional standards, leaves out vital steps, and misapplies methods. Ask about the 18/65 variables; and, why many valuation opinions are not the report preparer’s.
- The valuation considers all valuations approaches, and explains the selection and rejection of appraisal methods. Value adjustments (ownership percentages, discounts, premiums, and others) are completed only when the previous steps have addressed the appropriate facts.
- Comparative financial and value data come from reliable peer business sources. Public company data is not used unless you are a publicly traded company.
- The financial analysis procedures give high probability input for calculations. The reasons for the confidence in the conclusion are listed, the in-depth analysis is referenced, and the report covers the risk and value drivers. Ask about what can make a report superficial, misleading, and fall short of your needs. An improper degree of ‘due diligence’ tops the mistake list.
- The valuation preparer personally signs, seals, and certifies the report. The work was completed in a timely manner and as agreed. After reading the report, the “conclusion of value” and reasoning makes good business sense.
While these rules are obvious, I have found at least one rule violation in every report reviewed for clients.