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Preparing Your Business for Sale

March 05, 2014

Did you know that 40% of all companies placed on the market do not sell?

Did you know that 40% of all companies placed on the market do not sell? There is frequently a disconnect between the seller and the buyer’s perception of value. This blog will cover a few things you can do to make your business more attractive for sale.

Strategic Valuation

One of the first things that you can have done once you start thinking about preparing your business for sale is a strategic valuation. Having a strategic valuation prepared for your business will identify areas for operational improvement that can increase the value of your business. A strategic valuation can serve as your roadmap for implementing changes.

Strategic Valuation Process

The key areas any company contemplating sale should focus on are:

  • Planning
  • Leadership
  • Sales
  • Marketing
  • Finance
  • Operations
  • Legal
  • Human Capital

Assessment Process

A strategic valuation is a process performed by a business valuation expert that methodically analyzes your current operations through a series of detailed questions and analysis. This process will identify short, mid, and long-range improvement s that can be made to make your company more attractive to potential buyers.

You should then start addressing your worst results focusing on issues that are critical to protect the business and require roughly a 6-12 months to implement. Next come the secondary priority issues that are generally non threatening to the business yet would enhance its value. These can take anywhere between 1-3 years to implement. Lastly are third priority items that would be categorized as your long-term plans and take anywhere from 3-5 years to implement.

By taking the necessary steps to measure and address your company you will be better prepared for the sale of your business. Learn more on this topic by registering for Business Value is Universal where Peri Ann Aptaker will outline the many variables that can be considered in determining business value. Register Now

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