Readiness and Attractiveness
Enterprise University Fall Courses
Two things need to be true before you embark on the journey to sell your business:
You need to assess and work on your personal readiness to sell
You need to clearly assess how attractive your business is to potential buyers
Why does personal readiness matter?
Well, nothing will tank a business deal faster than an owner who isn’t really sure they want to sell.
Without a clear plan for ‘what’s next,’ that includes a deep understanding of yourself separate and apart from being a business owner, you may undermine the whole process without even being aware of it. Knowing why you want to sell, what a ‘good’ sale will look like, and what you will do once you are no longer in the day-to-day of operations allows you to bring a clear head and open heart to what can sometimes be a long emotional process.
Business attractiveness also matters because, no surprise, different things appeal to different buyers.
I had dinner the other night with a buyer who looks for owner-operated businesses with about $1m in revenue. He’s currently closing a deal to acquire a firm that is struggling with profitability but adds a line of services his business has been missing and new customers to whom he can sell other services. He’s a strategic buyer in his industry.
Who are the strategic and financial buyers in your industry? What do they care about and look for?
Want to keep the business in the ‘family’ - children or key employees? What needs to true for them to want to finance a purchase that satisfies your financial needs and their need to run a sustainably profitable business moving forward?
Seen through the lens of your buyer, what’s most attractive about your business? What’s bringing down its marks? What can and will you work on before going to market?
Join me on October 17 at Enterprise University (virtual! free!) for more discussion and exploration of the concepts of personal readiness and business attractiveness for owners.
Purpose First Advisors specializes in helping business owners create succession and exit plans that allow them plan and execute strategic growth. Let us help you build, grow and exit your business on purpose, with purpose.
