Most businesses are not ready for sale. While it is actually wise for all mature businesses to always be prepared for the deal of a lifetime, says Remon Lustenhouwer, Partner at Marktlink and co-initiator of M-Ready. He shares his views on effectively getting companies ready to sell.
Of course a business is sellable at all times. But if you have put your heart and soul into your business for years, sometimes your whole life, you want to get the maximum in return if you sell it. And a good deal can absolutely be steered.
Are you toying with the thought of selling your business? Then start preparing immediately, because then there is still a lot of steering possible. Don't wait until you want to sell 'now'. Entrepreneurs often do not consider what is involved in a sale. It takes an average of 6 to 36 months to really prepare an entrepreneur for the deal of a lifetime.
The M-Ready approach
A good starting point? Look at your own business as a buyer. What would you like to know or change when you buy? Of course, M-Ready is happy to think along. The sister company of Marktlink, specializing in getting businesses ready to sell, itself starts every process with a unique scan.
We test a company on several points. We look at the current state of affairs; such as how the business is doing financially, organizationally, market-wise and how the business is reported and recorded. Based on that, we make recommendations for how the business can be optimized.
Focus on 7 areas
The scan takes a complete look at a business, based on seven focus points
1. Business model
How do you generate revenue, and how future-proof is your offering?
2. Finances
How are you doing financially? And how are all your financial affairs defined?
3. Commerce
What does your sales funnel and process look like? What is your market position?
4. HR
What does your organizational structure look like? Do you have a diverse and adequate workforce?
5. Legal
How have you established agreements? What do contracts with customers and suppliers look like?
6. Data strategy
How do you handle employee, supplier and customer data?
7. Technology
Plays an important role in all the aforementioned points. All data, whether financial or human, must be accurately and securely recorded. Preferably digitally.
Indispensable tips
Tight accounting - in all areas! - is essential. All agreements should be on paper, preferably contractually for a solid legal basis. Especially if you, as entrepreneur or owner-manager, leave a company yourself, it is important to secure all the information that is now only in your head and also the relationships that are tied to you, for example with customers or suppliers, for the future.
And that brings us to one of the most important tips in getting your business ready for sale: make yourself misable as an owner.
Avoid disappointments
When a business is sales-ready, the breakup risk is limited. There is usually a lot of emotion involved in this type of transaction. Disappointment - on both sides - can be enormous if a transaction is aborted due to an imperfection during the due diligence. And you can avoid that with good preparation.
