Rock LaManna06.16.15
1. Prepare ahead of time - Becoming emotionally ready to sell your business is a key component of selling, and often takes at least two years to complete. Being emotionally unprepared quickly leads to irrational, and consequently, regrettable decisions. To get your emotions in check, talk to a post-transition specialist far before you’d ever consider selling your business. That way, if an unexpected offer presents itself, you can at least approach it with a straight head.
2. Realize they’re serious - Buyers only make acquisition offers to highly profitable companies. If you’re approached by a buyer, don’t second-guess yourself or the offer. Take the buyer’s offer seriously and listen to everything they say. Even if you weren’t considering selling, you might be pleasantly surprised with what you hear.
3. Seek expertise - Surround yourself with experienced sell-side attorneys, tax specialists, estate planners and industry experts who can lead you in the right direction. While these hires might seem like a costly upfront expense, it’ll pay off in the end.
4. Get a valuation - The best way to identify a quality offer is to order a business valuation. A quality appraisal will allow you to set a fair price, and create a five-year realistic projection for you and your potential buyer.
5. Be realistic - It’s flattering to receive unexpected interest in your company, but you must remain realistic. If you overprice your business or hold on too tightly to unrealistic expectations, you could squeeze the life out of an otherwise fair deal.
6. Don’t burn bridges - At the end of the day, you might not be ready to sell. Nothing’s wrong with that! Just make sure you leave the discussion on good terms with your suitor. You want to sustain your reputation for future offers. You never know when an acquisition offer will come your way. Follow these six steps to make a sensible and potentially profitable decision in the heat of the moment.
Rock LaManna helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. He is President and CEO of the LaManna Alliance, and provides guidance on how to grow a printing business, merge with a synergistic partner, make a strategic acquisition, or create a succession plan. Rock can be reached by email at Rock@RockLaManna.com.