Selling your business can be an organized process where each step maximizes profit and your advance preparation expedites the sale, or it can be a dismal failure full of gut wrenching interactions and tremendous amounts of your money left on the table at the close. Fortunately the choice is yours. A good Exit Strategy starts with simple awareness of the process of selling and can be implemented in advance in your day-to-day activities with little additional effort. Think of the sale of your business in health terms; would you have surgery with no preparation performed by someone with no experience? The results would probably be disastrous. To maximize value, an Exit Strategy should be a well planned procedure conducted with the assistance of a professional with years of experience.
Your Exit Strategy begins with awareness that one day you will sell your business. Reasons vary with each business owner and can be as simple as boredom with your own company that you have built, to complex issues such as health or divorce. Only you know when it is time for you to sell. However having implemented a written Exit Strategy will assure maximum profit at the sale and great peace of mind should you be selling under less favorable circumstances such as the mental duress of a downturn in business or poor health. You pay for insurance to protect your assets, why not implement an Exit Strategy now for the same protection of your greatest asset? Continue reading
With the first half of 2012 in the books, now is a good time to take a step back and evaluate the current M&A climate in the audiology industry. The following report, compiled from data on off-market transactions and conversations with key M&A personnel, provides a snapshot of today’s environment as well as activities planned for the future.
Corporate buyers lead the way in the audiology and hearing aid industry, as they have for the past decade. Deal activity in 2011 significantly outpaced 2010, and the first half of 2012 continued this growth trend with the help of a resurgent buyer who had previously lain dormant. Total deal volume of independent practices in 2012 is expected to reach $60-75 million. Continue reading
One of the most common questions that business owners ask us is “what’s my business worth?” The most effective way to answer this question is to purchase a comprehensive valuation report; however, you have options. There are three general categories of valuation reports at your disposal, each with their own pros and cons:
1. Free Online Valuation Tools
Spend a little time on Google and you can uncover a variety of free online valuation tools. Like most things on the web, they vary in their complexity and accuracy. The biggest benefit is that they are free, and most are quick and easy to use. They can provide a good starting point for someone who is curious about their company’s value; however, they lack the sophistication of comprehensive valuation reports. Continue reading
You’ve worked hard at your business, spent many years cultivating its growth and now you are thinking about selling. Just like running a successful business takes years of experience to learn, conducting a successful sales process to maximize your value does not “just happen” it is the result of a carefully orchestrated process.
Working with a professional Business Broker can save time, money, and increase the final price received. Some of the benefits of working with a professional Business Broker include:
- Maintain a Confidential Selling Process
- Properly Market the Company
- Market Knowledge
- Provide Overall “Deal Management”
Last month, in the first of our two-part series discussing common mistakes sellers make, we addressed five traps into which owners fall when preparing their business for sale. This month, we will take a look at the sale itself and the mistakes owners make once their business is on the market. While this list could contain dozens of items, I am isolating some of the most common mistakes that you are less likely to read about in other articles.
1. Window Shopping
It’s tempting to entertain offers for your business, without any intention of selling. Some find the negotiations thrilling, while others enjoy the ego boost of a strong offer. Do it too often, and you risk becoming the boy who cried wolf – by the time you’re serious about selling, nobody will listen.
2. Cutting Critical Spending
Imagine you spent the past 8 months going through the grueling process of selling your company, and the end is finally in sight. Continue reading