The subject of selling companies is inundated with information and instruction, but unfortunately, a significant portion of it lacks real-world deal-making experience. Consequently, it becomes challenging for business owners to make informed decisions and maximise their returns on the most important sale they will ever make.
At INSIGHT, we firmly believe that selling a company requires a proactive sales and marketing approach, therefore over the next eight blog posts we are taking each of the eight principles that stem from that conviction. These principles are not just theoretical but have been repeatedly tested and validated over our extensive history of selling companies in a significant number of industries.
Principle Eight - Follow a Process
Preparation puts you in control of negotiations and avoids the delays and surprises that kill a deal. For those reasons, you should define and follow a comprehensive process from the beginning. Our process for selling a company has the following stages:
A. Preparation
Gathering all of the information required to undertake the project, consisting of:
A total review of your own company and how you present yourself on social media.
Establishing all the benefits you have to offer.
Thorough financial preparation
Considering future opportunities
Market analysis
Assessing the nature of possible buyers
Production of all documentation, including a Confidential Information Memorandum, forward-looking business plan, management presentations, financials (past and projected), and more.
Preparation for the upcoming face-to-face meetings with potential buyers
B. Research
Exhaustive research to identify potential acquirers both domestic and abroad, inside and outside of your sector.
C. Marketing
A prospect generation effort of hundreds of phone calls, presenting the opportunity to senior business owners in a completely confidential manner. Careful assessment and analysis of the feedback we receive from potential buyers.
D. Deal Making
First in-person meetings with potential buyers, to provide additional detail on your business, discuss the potential combination benefits, and directly assess the quality and fit of each potential buyer.
Manage the bidding process in a way that leverages choice and maximizes price.
Work with an experienced transactional attorney to manage the due diligence and legal matters. During this stage you must continue to maintain choice as it has a profound impact on the speed of the deal and, therefore, the likelihood of completion.
For further information you can read our guidebook:
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