I recently came across an article published on Axial that was guest written by a fellow who had sold three companies that he owned over the past few years.
I always love these “inside the deal” looks because there really is only one way to experience an M&A transaction: Go through it!
Unfortunately far too many, like Giff Constable, learn how to sell a company while making a boatload of mistakes. To aid other entrepreneurs, Mr. Constable penned an exceptional piece narrowing the plethora of mistakes most “going solo” business sellers make down to four major ones:
Constable calls these “CEO self-deceptions,” and they are far too easy to fall into and have dangerous impacts on selling a business.
Of these, the last two go hand-in-hand. Taking the last one: You can wait to talk to buyers “when the time is right.” BUT how do you know the time is right?
Keep this in mind:
There are two kinds of sellers – those that HAVE to sell and those that PLAN to sell
Too many business owners only know that it is time to sell when one of the big Ds force them to talk to buyers:
We hear horror stories about these every week at our exit planning conferences. Sadly, by the time an owner is in the midst of one of these, it is a fire sale and any buyer will do. So, it is far better to PLAN to sell your business than wait until negative circumstances force your hand. The key to this is:
Get started early!
It is never too early to avoid the third mistake above by hiring a professional M&A advisory firm.
The reality is that the professional process to selling a business, which gives you the best chance of achieving maximum value when you exit, can take 9-14 months to complete. That’s because it is comprised of several key steps:
And while these are going on, YOU NEED TO KEEP FOCUSING ON RUNNING YOUR COMPANY.
I bolded and capped the last sentence because it really is why you need to hire an M&A firm to guide you through selling your company. If you take your eye off the proverbial ball, you could literally lose millions of dollars off the offer you receive by missing your projected numbers.
So as much as you can, avoid all four of these mistakes:
Special thanks to Axial and Giff Constable for doing such a great job outlining these.
We expand on these and many more mistakes when selling a business in greater detail at our complimentary exit planning conferences. It is just one of the many topics we examine in detail during this comprehensive education on how and when to exit for maximum value.
Interested in learning more? Follow these links:
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2021 Generational Equity, LLC. All Rights Reserved.
it all started with a conference.
start your story today,
speak directly with one of our senior advisors +1-972-232-1121
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Group’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Group to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Group is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Group.
Success, you have been added to our list.