Sell a business is more than just a good presentation and the right network. Staying calm throughout the process while also moving forward. Strike while the iron is hot, but also keep a cool head. A sales process has high peaks and deep valleys in momentum, but when is speed a good thing, and when is it not?
Time management in sales processes is of great importance and represents one of the biggest challenges and areas of added value for a sales consultant. Because so many people are involved, managing time requires careful planning in and of itself.
Momentum in Different Phases
At the outset, the sales process is fairly straightforward for you as an entrepreneur. After the initial exploratory meetings between business owners and sales advisors, financial and operational information is requested, ultimately resulting in a polished company presentation for potential buyers. This is a well-defined and easily planned step in the sales process, involving relatively few stakeholders. For advisers, it is important to take the time to thoroughly understand the business in question, which gives the entrepreneur the opportunity to continue focusing on the business and optimizing its results.
As more stakeholders—such as buyers and their advisers—become involved in the process, timing and momentum play an increasingly important role. A strategically chosen time to approach the market—avoiding vacations and holidays—sets the tone for a smooth or sluggish process. Short lines of communication between advisers, the seller, and potential buyers ensure a rapid exchange of information during this period, which typically builds trust among interested parties. In this phase, speed in communication and the provision of information—from you as the seller, in collaboration with your adviser—is crucial. At the same time, you must all remain calm and take the time to engage and retain the interested parties. This calmness creates the space for all interested parties to get to know the property and submit a well-considered offer.
Once parties enter into an exclusivity agreement and the due diligence process begins, the speed at which information is provided becomes even more critical. To minimize delays in due diligence, the information base must be complete and of high quality from the outset, and questions must be answered in a timely manner. A hands-on sales consultant who manages this process can save business owners a lot of time, worry, and stress.
The influence of the deal team
The seller, the potential buyer, and the buyer’s adviser also play important roles in determining the pace of a transaction. Difficult communication with a seller is a source of frustration for an adviser, because many parties depend on his or her responses. In addition, potential buyers sometimes deliberately seek to delay the process in order to optimize the timing for themselves. Reasons for this include, for example, a parallel transaction, the release of half-year financial results, or difficulties in securing financing. Ultimately, a sales process never goes exactly as planned. However, you can make the necessary preparations to ensure the process runs as smoothly as possible.
In a sense, a sales process behaves like a rubber band, requiring the right balance between accelerating and slowing down. A process that moves too quickly can sideline the ideal buyers, while one that moves too slowly can actually generate disinterest due to long wait times. The right deal team—one that knows how the game is played—can make all the difference for you as an entrepreneur.
