Preparing to sell your business is a an emotional, complicated, time-consuming process. But the result can be rewarding if done well.
For Construction Pros offers the following key areas you should focus on for a successful sale.
- Prepare yourself for the emotional element. Write down any reasons you are selling to remind you later of your goal. At some point, you will get frustrated as buyers examine your business, but staying level-headed is crucial. Additionally, a third-party evaluation of your company can help set realistic expectations regarding process and valuation.
- Identify your successor. Buyers will ask about who can run the business when the owner is gone. A succession plan is good business practice and will add value to the sale of your company by reducing the risk associated with leadership and business knowledge. Without a succession plan, buyers will factor in the cost to train and replace the owner, which affects the purchase price.
- Carefully review your company. Look at your business critically from a buyer’s point of view. Do your company’s website or social media accounts need a refresh? Are your operations running as efficiently as possible? Are your facilities appropriately clean and professional for onsite tours?
- Prepare for due diligence. It takes time and effort to prepare all the required information. Gathering all the materials can be daunting, so it is crucial to start early so you have plenty of time. Additionally, many mergers and acquisitions processes have secure digital data rooms that efficiently can accumulate thousands of documents—such as financial statements, customer contracts and vendor agreements—in one online location.
