888-983-1617 [email protected]

Nelson Mullins’ Rhys Wilson – “How To Prepare Your Business for Sale”

Nelson Mullins lawyer Rhys Wilson wrote a very good article for Industry Today about how to prepare a business for sale. I liked both the content of his points and the order in which he addressed them:

1. Know your minimum sales price.

If you’re considering a business sale, do this first — not second, not later, not based on what the market says. In his article, Rhys explains the complexity of reaching a solid number. A thoughtful financial planner will identify things most of us would never think of. Choosing a minimum sales price that you believe in will anchor you during whatever decisions come next.


2. Know the value of your business.

Rhys makes the point that this doesn’t have to be a formal valuation. Second, not first, get an estimate from a M&A advisor (an investment banker, a business broker or a consultant like Oaklyn Consulting) about where companies like yours might trade, so that you can compare your minimum sales price with a possible sales price and start to quantify your “deal” and “no deal” options.


3. Reduce risk = Increase value.

In other words, start to change the value of the business by fixing the things that keep a business from being a market-ready asset. Most private businesses are not managed to be sold on any given day, and making a business market-ready takes time. Rhys’s article includes some important headlines, and introductory conversations with thoughtful lawyers, accountants and M&A advisors can add helpful insight.

My recommendation: Work through these steps with advisors who have your best interests in mind, will not push you into a deal, and will help you identify and quantify all your options.

Read the original article linked here.

Is Now The Right Time To Sell My Business?

Ask Us Anything Dear Oaklyn Consulting, For the last five years, I’ve been making 65% to 75% gross profit. I know in the next few years, gross profit is going to shrink because of new competition coming into the market. What advice do you have for me to consider...

How to Navigate Business Debt and Equity Options

When closely held businesses need capital, they generally have two options — getting a bank loan or seeking out private investors. While a loan isn’t going to be a viable solution for every liquidity need a business has, it can be significantly less expensive in the...

Help Me With a Conflict in My Family Business

Ask Us Anything Dear Oaklyn Consulting, Three members of our family business (a father and two sons) are not getting along. The father isn't retiring and wants to control the business, while the sons would like to sell the business. What advice do you have for the...

Help Me With a Succession Plan

Ask Us Anything Dear Oaklyn Consulting, It’s been a really hard year. I own a business that I’ve been successfully running for the last 15 years. I’ve had some health troubles that have pushed me to a position where my doctors are suggesting that I need to retire...

Can a Nonprofit be Acquired by a Corporation? 

Can nonprofits be acquired by corporations? Is it a good idea for for-profit businesses to acquire nonprofits? Learn everything you need to know.

Venturing into Capital: Understanding Small Business Private Equity  

Explore small business private equity and all of its alternatives to reach new heights for capital in your company.

Help Me With Acquiring a Business

Ask Us Anything Dear Oaklyn Consulting, I am a business owner who has a substantial local presence. I’m considering acquiring a competitor that has a larger presence outside my current market. This move would expand our footprint immediately and give us the...

How to Merge Nonprofits: Acquisition, Stakeholders, Post-merger Integration, and More

Merging nonprofits is not as hard as it sounds. Just make sure goals are aligned, assets are well assessed, and that you have the right advisors by your side.

Oaklyn Consulting Congratulates Finite Reimaging on Acquisition by CAMP Construction Services

Oaklyn Consulting helped AMP Construction Services acquire Finite Reimaging. Learn it all here.

Help Me Develop a Sellable Asset

Ask Us Anything Dear Oaklyn Consulting, I don’t know if it’s the economy or the time of year, but it feels like every time I turn around, there is another M&A firm calling to see if I am in the market to sell my small business. I know that this is something that I...