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their counsel but at the end of
the day the decisions are yours to
make because the consequences
of those decisions fall on
your shoulders.
DON’T
forget to run your business.
It is
common to feel a financial and
emotional pull between running
and investing in the company
and deciding any issues that
come up will be someone else’s
problem. The truth is that until
you sign closing documents the
company is your responsibility.
Continue running the day-to-day
operations just as if you were
going to own the company for
10 more years. Most purchase
agreements have a clause that
stipulates the owner will run the
company in the ordinary course
of business. That doesn’t mean
you have to go out and buy a
brand new piece of equipment
but it does mean that you should
continue filling orders and
treating customer matters with
the same diligence as you always
have. You want to close your
chapter of the business with the
same positive energy that you
opened it with and ensure the
buyer has a strong start to giving
your customers the same positive
experience you did.
DO
start planning early.
Whether your goal
is to sell next year
or 10 years from now it is never
too early to begin planning for
a sale. Most of the strategies to
building a valuable company
should be implemented long
before you sell it and will make
your company more successful.
Much like selling a house, there
is constant maintenance that
should be done to ensure the
company is strong and healthy
for a potential buyer. Unlike
selling a house, many of these
maintenance items are behaviors
that cannot be implemented
overnight. Establish a succession
plan and revisit the plan annually
to be sure it still coincides with
your long-term goals.
DON’T
turn down the first offer just
because you think you might
get a better one.
The best buyers
are motivated to move quickly.
It may be the best and/or only
offer. There is a list of sellers who
regret losing good deals because
they waited too long for others.
A bird in the hand is truly worth
dozens in the bush.
DO
enjoy the fruits
of your labor
.
If
you are a business
owner, then you are a risk taker
and an entrepreneur. You have
provided yourself andmost likely
others a job. Take pride in knowing
you have built something of value
and take time to enjoy the reward
for the efforts you have put forth.
Good luck.
Jamie D. Watson, MAS, CPA, is a
financial analyst with industry
business services company
Certified Marketing Consultants
in Huntertown, Indiana.
Start
planning early.
It is best to start
the process at least
five years before
you plan to sell.
Know your value.
Get a business valuation
and know what drives/
subtracts from value.
Stay flexible.
Be prepared for a
buyer to relocate or
make other changes
to the business.
Keep accurate
financials.
This is important for all
business but especially
when you want to sell.
Whether your
goal is to sell next
year or 10 years
fromnow it is
never too early to
begin planning
for a sale.
Hire a professional.
The right representation will make
the deal flow better and increase the
likelihood of closing the deal.
Sell Smart
74
|
SEPTEMBER 2016
|
THINK