Selling a Business Successfully is More Than The Exit

What can you do today to give yourself more options when the time eventually comes to sell your business?

 

In Episode 5 of IN FOCUS: Built to Last, Deal Leaders International joint CEOs Andrew Bahlmann and Rik Grantham explore what it takes to prepare a business for a successful sale, recapitalisation or transition, and why much of the work that determines the eventual outcome begins years before a transaction.

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The conversation looks at what makes a business transaction-ready, from reducing dependence on the founder and strengthening management to improving governance, reporting, forecasting and the quality of information within the business. Strong financial performance matters, but buyers are also assessing risk, future growth potential and what the business could become in their hands.

 

Finding the right buyer is equally important. The most obvious acquirer is not necessarily the buyer that can create the greatest value from the business. A well-prepared, competitive process can expose owners to different categories of buyers, create “deal heat” and give them the ability to compare not only price, but also deal structure, strategic fit and what happens after the transaction.

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For owners, the lesson is to start preparing before a buyer arrives at the door. Building a business that can demonstrate its value, operate beyond its founder and withstand the scrutiny of a transaction creates more options, whether the eventual path is a sale, investment, partnership or succession.

 

A successful exit starts long before the sale. Build the options before you need to choose between them.

 

IN FOCUS: Built to Last is a Creamer Media production in partnership with Deal Leaders International.