Question: What is the most difficult part of selling a company?
Answer: Committing to sell
The first most challenging step is to commit to your decision to sell. When considering your company's future, it is imperative that the business owner make a rational decision to sell and see the plan through. It is only natural to question if it's the right time to sell, but those owners who see their calculated decision through, will be successful in the end. The business owner should listen to their head and heart when considering selling. The right decision will be that 'gut instinct' - pay attention to that.
Question: As a seller, what should I be doing during the due diligence process?
Answer: Due Diligence goes both ways
The business owner should always conduct due diligence on the potential buyer. Beyond financial buying power and purchase price, you should be interested in their background, intentions with the business and its key employees, management philosophies, maintaining culture, etc. Find out why inquiring buyers are interested in your business, ask for a resume, and dig for answers. If using a broker, have them assist in this process.
Question: What is an obvious action that some sellers forget?
Answer: Pay attention to your business and keep running it
While selling your business may prove distracting, it is essential that the owner continue to run his or her operation; almost as if it wasn't for sale. While you will be making sure your ducks are in row and ready to put on its best face for potential buyers, taking care of your employees and your customers is important. It is to the owner's detriment if business sales decline, staff begins asking questions, and if the sale takes longer than anticipated. Maintain business as usual and let your business selling team run the ball to the goal line.
Question: Is a business valuation really necessary?
Answer: Yes!
Whether you are the neighborhood bagel shop or a Fortune 500 company, a business valuation is a precious and valuable report to have. A business valuation takes you, the seller, out of the equation when calculating the value of your company. Potential buyers are at ease knowing they have an accurate and unbiased figure to work with -AND- the seller has a base price to advertise or negotiate. A business valuation goes beyond creating a purchase price. It allows the seller to prepare all essential financial and operational paperwork for the valuation which simultaneously serving as report material after the company is put on the market.
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