Will You Get Top Dollar When You Sell Your Business?

Noel Peebles Selling your business will probably be your biggest sale ever.
But, to get the best price you'll need to satisfy your buyer
on two points. Firstly, your company should be showing good
returns. Secondly, there needs to be a strong likelihood that
this trend will continue.

This is why you (as current owner), have an important part
to play in the transition period during and after the sale.

Your customers and clients may be watching the changeover
very closely. If you have a successful business, then it is
fair to assume that your customers have grown to like you
and the way you run your business.

Remember, most people don’t like change, so the transition
is critical to make sure that your customers and clients
remain with the new owners. No customers...no business!

Here's what I mean. When selling one of my businesses to a
senior banking executive, I remember a comment he made just
before signing the contract. It was something like this:

"I have seen so many people buy a successful business, rush
in and change everything and then lose everything."

He went on to add "You are running an extremely profitable
business, so you must be doing something right. I am not
going to change anything, probably for at least a year,
or until I find better way to do things."

He kept his word and the business continued to perform
exceptionally well. Eventually he did make changes, but he
did it from a position of knowledge... and with understanding
of the market requirements. A smart cookie!

However, it is not always like that. The new owners may not
want you involved. This is something you need to be mentally
prepared for. Don’t automatically assume there will be a place
for you, even in a part-time or consulting role. Regardless of
your ability, they may not want you to be involved. A new
broom sweeps clean. The new owners could see you as a threat
to the vision they have for the business.

Naturally, when things go wrong, it is likely you will be
blamed for selling them "a dog."

On the other hand, the new owners may want your help. They
may want your experience and full support during the changeover
period. They may even want you to stick-around for a while until
they have come to grips with their new venture. The level of
support you offer will need to be negotiated as part of the
sale contract.

You, on the other hand, may want to cut your ties as quickly
as possible after take-over day. I mean, let’s face it -
selling the business could represent the end of a long drawn-out
sales process. You may just want to cut your ties and move on.

So there you have it. You’ll need to think about the likely needs
of the buyer and mentally prepare yourself for the different
scenarios that could follow.

And remember your level of on-going support may be another
bargaining chip for you to play in your biggest sale ever!

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ABOUT THE AUTHOR
Noel Peebles has bought, developed and sold several of his own
businesses, and has been involved with the purchase and sale
of many others.
Noel now runs his own direct marketing and internet company, supplying marketing and management
solutions for small businesses. He also has his own public
self-storage complex.
And, he's traveled extensively to over forty countries.