Hoping to Sell Your Business in 2023? Get Ready Now
The new year is the ideal time to take stock of what your business has already done, and where it’s going. If you’re considering selling a business, now is the time to get ready.
The new year is the ideal time to take stock of what your business has already done, and where it’s going. If you’re considering selling a business, now is the time to get ready. Even if you’re not sure you want to sell, the process of preparing can help get your business ready for the future and potentially even increase profitability. Ready to think about what 2023 holds? The time to begin exit planning is now.
Consider Why You Want to Sell
It’s the first question an M&A advisor or a potential buyer will ask: Why are you putting this business on the market now? Your reason for selling will affect the sale process, since it may determine how much you need to make the sale successful. It’s also relevant to the buyer, who wants to know that you’re not jumping from a sinking ship.
Get Expert Help Early
An M&A advisor is invaluable at every stage of the process. They can help you with pre-marketing considerations, including whether it’s really time to sell and how you can get the most for your business. As son as the possibility of a sale darts across your mind, it’s time to bring in an expert.
Contemplate Your Ideal Buyer
What do you want for the future of your company and employees? This will greatly influence whom you sell to. Consider what the ideal buyer is likely to do with your company, and how the right buyer will perceive your business. Then work with an expert to develop a marketing plan that speaks directly to this buyer.
Get Real About Valuation
How much is your business worth? How did you decide on that figure? And do you think a buyer is likely to agree? Valuation disputes are common in the world of M&A. So work with a valuation expert early, not only to understand your business’s value, but also to identify strategies for potentially increasing that value.
Make Sure Your Business is Ready
The following are attributes of a business that is truly ready to go on the market:
- The seller is ready for due diligence, and can document all claims about the business.
- The business is profitable, or growing, and shows steady, consistent growth over time.
- The business is not excessively dependent on the owner, and has a strong management team in place.
Depending on your niche, there may be other priorities, too. But these are the bare minimum. If you’re not quite there yet, you’ll need to spend some time ensuring your business meets these basic requirements before putting it on the market.
Begin Marketing Your Company
Once you’re ready to go, don’t wait for a buyer to come knocking. Because often, when they do, they arrive with a deal that’s really not worth pursuing. Instead, you need to market your deal to the right buyer. That requires an investment banking team that understands the industry, can market your company, and connect you to the right group of buyers. Don’t try to do this alone, or you’ll almost certainly miss out on an opportunity to work with the ideal buyer for your business.