Positioning your company to sell well in advance of a transaction is one of the most important strategic initiatives that an owner should undertake. In a recent article, How to Get Your Company Acquired for Big Bucks, author, entrepreneur and former small business columnist for the Wall Street Journal, Mike Michalowicz summed it up like this: “Desperation isn’t attractive.”
Seven simple steps, when executed well, can make a big difference in how your company is valued, and how smoothly a transaction will go.
Here’s a snapshot:
- Realize what acquirers are looking for.
- Know that it’s a long process.
- Get as many bidders involved as possible.
- Get an investment banker or a business broker to handle the sale with you.
- Profitability is key.
- The riches are in the niches.
- Make yourself dispensable.
The secret behind these steps: “These are all things you should be doing anyway—things that make your company more efficient and profitable whether you plan to sell it or not,” says Michalowicz.
To read the complete article, please click here.
For more transaction “dos and don’ts,” read SDR’s “Top 10 Ways a Transaction Can Go Wrong.”