James F. Grebey

Moving On (eBook, ePUB)

Getting the Most from the Sale of Your Small Business

• Format: ePub

Produktbeschreibung

Selling a business is a critical event that may occur only once in a lifetime. This is an event when you can't afford to make a mistake. Small business owners need basic guidance from someone who doesn't have a stake in the sale of their business. Moving On: Getting the Most from the Sale of Your Small Business is a straightforward, highly pragmatic discussion that will guide you through the sales process and help you avoid some of the common pitfalls faced by business owners that lack experience with the process. This book will assist you in finding the right professional help when you are ready.

James F. Grebey, an operations management specialist who provides small business owners with insight into the sales process, helps you recognize pitfalls that could impact your sale negotiations. This book is replete with tips and tools that you will need to drive a successful sale of your business, such as writing the "book" used to market the business, and recommendations to create a working model with a dynamic (what if) spreadsheet to justify your sales projections. Readers will learn where to reach out for qualified professionals that can help with the sale process.

Click here (https://goo.gl/GgLNM8) for the author's related article "The Benefits of Effective Due Diligence for Investors and Business Owners" featured as the cover article on Divestopedia.

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Produktdetails

• Verlag: Walter de Gruyter
• Seitenzahl: 259
• Erscheinungstermin: 23. Juli 2018
• Englisch
• ISBN-13: 9781547400263
• Artikelnr.: 55004127

Autorenporträt

James F. Grebey is an operations management specialist who has implemented winning strategies for both large and small businesses. He runs his own management consulting business (Diligent Inc.) and has a track record for exceeding client goals and expectations. He is a licensed business intermediary but spends most of his time helping small business owners position their business in preparation for a sale. He has developed a proprietary operations risk assessment method and works with investors seeking to acquire small businesses.

Inhaltsangabe

Chapter 1: Let's Have a Conversation 1

Shadow of the Missing Owner 3

Staying In or Getting Out 4

Who Will This Book Help? 7

Chapter 2: Avoiding Seller's Remorse 9

Why Are You Selling Your Business? 10

Retirement 11

Stepping Up 11

Getting Out from Under 12

Partial Exits 13

Your Goal Is to Maximize the Value of Your Business 14

Not Every Business Can Be Sold 14

Can I Sell My Business If It Has "Warts"? 17

Why Do I Need to Position My Business to Sell It? 19

I'm Really Busy-How Much of My Time Will It Take to Prepare My

Business? 21

How Long Will It Take to Sell My Business? 22

And a Final Consideration 23

Jim's Bakery Example: Overview 23

Chapter 3: The Sales Process 27

Sales Process Tasks 28

Breaking Down the Steps 29

The Decision to Sell 30

Identify Your Transition Team 30

Position Your Business 31

Interview Bankers and Brokers 31

Listing 32

Prepare Marketing Materials 32

Create a List of Potential Buyers 32

Qualify and Down Select Buyers 34

Letter of Intent (LOI) and/or Purchase Agreement 34

Buyer's Due Diligence 35

Closing 37

Transition Support 37



Chapter 4: Start Thinking about the Value of Your Business 39

Make Sure Buyers Have the Correct Image of Your Business 39

Does Your Business Have "Curb Appeal?" 40

Be Prepared to Demonstrate Your Business in Operation 43

Talking to Your Employees 44

Jim's Bakery Example 47

Chapter 5: Who Are Your Buyers? 49

Business Buyers Are Not Impulse Buyers 49

Qualified Buyers 50

Looking for Strategic Buyers 51

Looking for Financial Buyers 53

Get to Know Your Buyer 54

Be Open to "Earn-Outs" and "Stock Swaps" 55

A Word about Ethics 57

Jim's Bakery Example 58

Chapter 6: Marketing Your Business 61

Where Are Buyers for Your Business Going to Be Found? 61

How Will You Market Your Business? 63

Getting Professional Help 63

Selecting a Sales Agent/Intermediary 64

Having Your Say 65

Marketing Materials 66

Market Relevance 66

Know Your Competition 69

Markets Are Dynamic 71

Your Business Is for Sale. Shhhh, Be Quiet, Shut up! 72

Down Select 73

The Single Buyer Slump 75

Jim's Bakery Example 76

Chapter 7: Preparing for a Due Diligence Financial Assessment 77

If You Want to Sell Your Business Get Your Head out of the Financial

Sand 78

Putting your Financial House in Order 81

The Dichotomy Dilemma 84

Recasting Your Financials 86

Third-Party Audits 87

Looking Toward the Future 88



Future Performance Should Be Based on a Solid Foundation 90

Jim's Bakery Example 93

Chapter 8: Preparing for a Due Diligence Legal Assessment 95

Legal Positioning Casts a Wide Net 97

Create a Milestone Calendar 98

Government Regulatory Compliance 100

Intellectual Property 101

Patents 101

Trademarks 102

Copyrights 102

Intellectual Property (IP) Assignment 102

Capturing IP 103

IP Violations Can Cost You 104

Jim's Bakery Example 105

Chapter 9: Preparing for a Due Diligence Operations Assessment 107

Start an Internal Risk/Opportunity Management Program for Your

Business 109

What Is the Scope of the Enterprise? 111

Preparing for a Customer Satisfaction Infrastructure Assessment 112

Preparing for a Production/Services Infrastructure Assessment 113

Preparing for a Sales and Marketing Infrastructure Assessment 114

Preparing for an Organizational Infrastructure Assessment 116

Prepare an Organization Chart 116

Don't Overlook the Informal Organizational Infrastructure 118

Preparing for a Personnel Infrastructure Assessment 119

Preparing for a Financial Operations Infrastructure Assessment 121

Preparing for a Legal Operations Infrastructure Assessment 123

Preparing for an Information Management Infrastructure

Assessment 124

Preparing for an Institutionalized Processes Infrastructure

Assessment 126

Jim's Bakery Example 127

Jim's Production/Services Infrastructure Preparation Example 128

Jim's Sales and Marketing Infrastructure Preparation Example 128

Jim's Organizational Infrastructure Preparation Example 128

Jim's Bakery Personnel Infrastructure Preparation Example 129

Jim's Bakery Financial Operations Infrastructure Preparation

Example 130

Jim's Bakery Legal Operations Infrastructure Preparation

Example 130

Jim's Bakery Information Management Infrastructure Preparation

Example 130

Jim's Bakery Institutionalized Processes Infrastructure Preparation

Example 131

Chapter 10: Due Diligence 133

Due Diligence Is a Continuation of Negotiations 133

The Due Diligence Process 134

Document List 135

Preparing an Asset List 136

Tangible Assets 137

Intangible Assets 137

Preparing for the Due Diligence On-Site Assessment 138

It's a Good Time to Build the Relationship 139

Post-On-Site Activity 140

Jim's Bakery Example 141

Chapter 11: Describing Your Business Model 143

Prepare an Elevator Speech 144

Prepare a Written Description of Your Business Model 144

Beware-Business Models Change 146

The Franchise Business Model 148

Strategic Decisions Should Be Tested by the Business Model 148

Business Models Affect Valuations 150

Make an aaS of Yourself 151

Jim's Bakery Example 152

Jim's Bakery Business Model 153

Chapter 12: Writing Your "Book" 155

Your Book Is a Business Plan and a Marketing Proposal 155

Using a Third Party to Write Your Book 156

Generating Content for Your Book 157

Your Book Provides the Pith of your Business 157

How Long Should Your Book Be? 158

Book Outline 160

Overview 160



Market 161

Competition 162

Business Model 162

Product Descriptions 163

Sales Performance and Projections 163

Operational Description 163

Financial Summary 164

Protecting Your Work 165

Create a Short Handout 166

Jim's Bakery Example 166

Chapter 13: Create a Virtual Model of Your Business 167

Your Financial Reports Should Be Your Greatest Sales Tool 168

Creating a Spreadsheet Model of Your Business 169

Use Linked Spreadsheets for Greater Fidelity 170

Monthly "Actual" Input 172

Jim's Bakery Example 172

Chapter 14: Valuation 177

Financial Analysis and Certified Appraisers 179

Value vs. Price 180

Use Caution Applying Metrics 181

Automation Can Help 183

How Can a Professional Appraiser Help You? 183

Valuation References 185

Jim's Bakery Example 185

Chapter 15: Partners, Vendors, and Other People Who Care 187

Cleaning up the Ownership of Your Business 188

Prior Investors 190

Outstanding Debt 191

Vendors and Critical Suppliers 191

Remove Any Blurred Lines 193

Chapter 16: Who Are the Deal Makers? 195

Finding Professional Help 195

Business Brokers 196

Investment Bankers 197

Types of Buyers and Investors 198

Banks 198

Venture Capital Companies 198

Angels 199

Beware of Sharks 200

Chapter 17: Loose Ends and New Beginnings 201

Transition Planning 201

Future Insurance Needs 202

Buyers Change Hats, and You May Too 203

Taxes 203

Asset vs. Equity Sales 204

Lock-outs 205

Taking the High Road 206

Become a Consultant 206

Appendix A: Example Marketing Handout 209

Appendix B: Example "Book" 211

Index 231

Rezensionen

"No small business owner should think about selling their business without first reading this book."

-Bud Strang, CEO, Six/Ten, LLC

"This book provides the necessary knowledge to prepare our clients when they're ready to engage with our M&A advisory and selling processes."

-Jonathan Molayem, President, Aquivest Financial Group