(continued from March 9, 2014)
While the stars may align in terms of valuation and economy, it is important to not ignore the practical aspects of completing a transaction. Having the right mindset and being emotionally ready to sell require being in the right place so that the transition can occur. The soft characteristics are equally as important as the hard technical aspects, if not more so. These must come together to make the deal go through.
You may be needed to help transition the company to new owners, and the transaction may take longer than expected. And, if the transaction leads to retirement, how do you plan to spend your newfound time? It may be hard to leave the company that you have spent so long building. Being truly ready requires preparing yourself, preparing your employees and creating the right exit at the right time for a smooth transition benefitting both the buyer and seller. These aspects are often overlooked, and expertise in this process is often why we are hired. The technicalities of a transaction are only part of the whole selling process.
Having a successful sale is not difficult if you are doing things right to complete the sale in an orderly fashion. It is important to value correctly, pay attention to the economy, and watch out for the subjective characteristics to help the deal go through. At the end of the day, a sale is about finding a buyer who matches what you are selling!
If you would like to further explore how a business valuation can help you or prepare for an M&A transaction, please call Synergetic Finance at 206-386-5455 or email us today.
To your success,
Mark Girouard, MBA, AVA, CMA&A