Sell Your Company
Making the decision to develop an exit strategy to sell your company is very personal. Your company provided for your family, paid for your vacations, put your kids through college, and, with a proper exit strategy, should provide a comfortable retirement. Your business, after your children, may be your life’s greatest accomplishment. And also lets face it, it has been a lot of work – you have been the “chief cook and bottle washer,” you put in long hours, worried about losing your big client, stressed about making payroll, sweated hiring and firing personnel, etc. especially during the startup years. Now you are considering an exit strategy to sell your company. This may be the most important financial decision you will ever make in your lifetime. What should you consider?
Do You Hire a Banker?
Deciding whether or not to hire a banker or business broker to sell your company for you is an important first step. Hiring someone will allow you to run you business without the distractions of contacting, educating, and managing numerous potential buyers. A banker or business broker should know what buyers in your industry are looking for and who they are. They also should be able to tell you know what they think your business will sell for, given a little research. A banker should be able to bring several interested parties to the table and via a “limited auction process” be able to maximize value in a way that you will not be able to if you decide to sell your company on your own. Also remember that the buyer will be your employer for a couple of years – it is not in your best interest to play hardball with him. Let the banker be the bad guy. If a banker cannot increase the price of the business more than his/her fee, he/she will not be in business for long.
Another issue to consider in hiring a banker or business broker to sell your business is that the buyer will often be in the business of buying businesses professionally. You will likely sell one, maybe two, businesses in your lifetime. The person sitting on the other side of the table from you may do 5+ deals a year. You need to have someone on your side who knows the ins and outs of doing deals. There are a lot of pitfalls in selling a business. Having a good experienced guide should not to be taken lightly.
Finding the right buyers is not as obvious as it may seem. Often your competitor down the street is not the right buyer. A good banker will research the industry and find the right companies to approach – maybe local, maybe a private investment firm, maybe an overseas buyer looking to get into the domestic market, or maybe someone in a completely different industry but with some need to get into your market.
Exit Strategy with Ampure Capital
Ampure Capital can help guide you through the process of selling your company. Of course, we cannot tell you when is the best time for you to sell your business. However, we can let you know what is happening in your industry and the larger economy and M&A market. We can help you develop a plan to maximize the value of your business. And we can run an efficient process and bring the right buyers to the table and facilitate the best deal for you. To learn more about how Ampure Capital can help you sell your company please fill out the contact form or call us now at (213) 537-3580.