14 Steps to Maximum Value and Profit
Professional M&A experts follow well-defined, orderly steps to sell a business. It is the only way to negotiate the best deal structure and price. As a business owner interested in selling your company, you will probably rely on an intermediary to take these steps for you. Even so, it is wise to understand the process so you can play an active, educated role in the sale of your business. Here are the 14 steps most often followed by professional M&A experts:
Step 1- Value Analysis
Studies have shown that 80 percent of privately held companies are sold for less than fair market value. For that reason, this step is critical to all that follow. A proper valuation of your business should involve the analysis of many factors, such as gross sales and profit percentage, company infrastructures, product or service leadership, current market conditions, growth opportunities, market demand for that particular type of business, and many others.
Step 2 – Sell Now or Later
Two main factors will decide whether you proceed to sell your business. One is [Read more…]