I’m Ready to Sell – Now What?

You’ve worked your whole life building your business. It has provided a comfortable lifestyle and perhaps much more. You are at that “certain age” where you face the inflection point of passing the business to the next generation (if they exist or if they want it) or sell. Perhaps you are at a different inflection point where you want to remain active. You have built your company but it will take outside capital plus more to bring the business to the next level. You need the “right” partner to get you there. Or regardless of age you think your enterprise has achieved maximum value and you are ready to move on.

We have seen this theme play out many times before. The bottom line is “I’m Ready to Sell - Now What?”.

You may think you can do a great job selling your business just as you did building your business. Hey, your golf buddy at the club is still boasting about his big deal. Why not you?

Our response is when you get one great offer for your company you are getting one great offer for your company. You will never know the true value of your business without running a full sellside process. Whether you select the Sellside Group or some other M&A firm please be proactive and let the process itself drive maximum enterprise value.

When selecting an M&A firm interview a few and select the one that shows the greatest interest, knowledge and industry expertise. Confirm the seniority level of the “Deal Team” that will take your company to market. At the Sellside Group (SSG) we are proud of our 45+ former C-Suite owner/operators of mid–large cap businesses where our backgrounds, experience and connectivity enhance the overall deal outcome. We always have two Senior Managing Directors leading an engagement supported by ten Business Analysts.

We begin the process with an honest corporate self-assessment. Have you run the business to maximize your lifestyle with several personal expenses running through it or in compliance with GAAP principles? Have you properly reinvested in Personnel?  Capital Equipment? Technology? Product Development? Do you have customer concentration issues? Are you wholly dependent on certain suppliers? Is the business a cash cow? Or is the business a thriving enterprise growing its products, services and customers building enterprise value at every turn? Or is your company somewhere in between?

The Sellside Group can help. We have built a “Seller Qualification Survey” that takes you and your company through a Stress Test. We help identify those areas that require attention before you launch the sellside process. Seller readiness is critical. During “Due Diligence” every buyer will put the company through a Quality of Earnings (QofE) review with a third-party professional. This review will uncover any financial discrepancy. Separately, do you have professionals on staff or with your accounting firm that can respond immediately to any QofE issue? Perhaps you will need to engage a Fractional CFO? The goal is to pre-empt as many issues as possible since anything uncovered or left unanswered will reduce enterprise value or upend the transaction altogether.

Selling your business is like being on a long journey without a clear path. You are now at a crossroad not sure which way to go next.

Give us a call at the Sellside Group. We can help.