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Dear Oaklyn Consulting,
What are some crucial items to be considered when selling a business? And do you help clients purchase as well as sell?
From Oaklyn Consulting
A crucial first step toward the successful sale of a business is to do what you’ve done here: start to ask smart questions. For a lot of entrepreneurs, being inquisitive and thinking about the practicalities of a business sale can help illuminate what they’re looking for in a seller, as well as what they want to avoid.
While money is obviously a factor when selling a business, we’d argue that it matters less to sellers than other things, such as finding a buyer who aligns with their vision and understands the company’s future potential for growth.
If you’re getting ready to sell your business, before engaging with any potential buyers, make sure a business sale is really the best option for you. If so, what does a reasonable offer look like? It’s important to draw your line in the sand in advance so that you’re mentally prepared to walk away from a deal if it’s not a good enough fit. You’ll have more leverage at the negotiation table if you know what makes a deal suitable or unsuitable.
It’s also important to know a deal’s potential advantages for your company, not just yourself. How would your stakeholders (customers, employees or key vendors) benefit? Would your company’s organizational capabilities improve, and would that be reflected in its dealings with others? If you have specific goals you want to accomplish, narrow your focus to prospective buyers who are aligned on what your business would look like post-deal. Also, make sure that you and the other party are in agreement on how to share the inherent risk that comes with any deal.
Once a prospective buyer satisfies all the conditions above, then, and only then, consider the price. A helpful way of putting things in perspective is considering what your business would normally earn in the short-term future and using that as a barometer.
A big part of what makes Oaklyn Consulting so unique is that we’re truly objective, whether we’re working with a seller or a buyer. We serve as a sounding board to help our clients choose the best path forward, whether or not it involves a sale.
