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5. Be dispensable - so buyers won't worry that your departure will reduce the value of your business
4. Set your sights on the best buyers - and do what you can to increase your appeal to them
3. Go for growth - so that you have a track record that makes growth projections credible, since profit growth is what drives valuations
2. Communicate - make the case for others to invest in your business! What return on investment is it likely to provide them?
1. Create competition - to keep buyers honest and push them to pay for synergies and strategic value.
Doing any one of these things transforms the results you get from your company sale. Just look at this video case study of how creating competition - by itself - led to the tripling of the price achieved by the owner-manager sellers.
Doing all these things makes a really dramatic difference to your outcome. We have seen it over and over and over again. It's the source of our greatest excitement and satisfaction in our business.
Shield Corporate Finance is at your service!
We originally released Shield M&A's Top 5 Tips for Selling a Business, one at a time, in 2008. During that time, we witnessed the most threatening Western economic downturn in living memory.
But, whatever the macro-economic and market conditions, our experience shows that sellers can have much greater influence over the outcome of a business sale process than is generally supposed. There is a set of 5 secret levers they can pull (or ignore) which have the power to make the difference between failure and success, and to produce a prodigious premium in the price achieved. These levers are described in our 5 Top Tips for Selling Your Business, above.
For further tips, sign up here.
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