Moving On

Getting the Most from the Sale of Your Small Business
1. Auflage 2018
ISBN: 978-1-5474-1637-0
Verlag: De Gruyter

Buch, Englisch, 239 Seiten, Paperback, Format (B × H): 155 mm x 230 mm, Gewicht: 391 g

Selling a business is a critical event that may occur only once in a lifetime. This is an event when you can’t afford to make a mistake. Small business owners need basic guidance from someone who doesn’t have a stake in the sale of their business. Moving On: Getting the Most from the Sale of Your Small Business is a straightforward, highly pragmatic discussion that will guide you through the sales process and help you avoid some of the common pitfalls faced by business owners that lack experience with the process. This book will assist you in finding the right professional help when you are ready. James F. Grebey, an operations management specialist who provides small business owners with insight into the sales process, helps you recognize pitfalls that could impact your sale negotiations. This book is replete with tips and tools that you will need to drive a successful sale of your business, such as writing the "book" used to market the business, and recommendations to create a working model with a dynamic (what if) spreadsheet to justify your sales projections. Readers will learn where to reach out for qualified professionals that can help with the sale process. Click here (https://goo.gl/GgLNM8) for the author's related article "The Benefits of Effective Due Diligence for Investors and Business Owners" featured as the cover article on Divestopedia.

Autoren/Hrsg.

Grebey, James F.

Fachgebiete

• Wirtschaftswissenschaften Wirtschaftswissenschaften Wirtschaft: Sachbuch, Ratgeber
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensorganisation, Corporate Responsibility Unternehmensnachfolge
• Wirtschaftswissenschaften Betriebswirtschaft Management Unternehmensführung

Inhaltsverzeichnis

Chapter 1: Let’s Have a Conversation
1
Shadow of the Missing Owner
3
Staying In or Getting Out
4
Who Will This Book Help?
7
Chapter 2: Avoiding Seller’s Remorse
9
Why Are You Selling Your Business?
10
Retirement
11
Stepping Up
11
Getting Out from Under
12
Partial Exits
13
Your Goal Is to Maximize the Value of Your Business
14
Not Every Business Can Be Sold
14
Can I Sell My Business If It Has “Warts”?
17
Why Do I Need to Position My Business to Sell It?
19 I’m Really Busy—How Much of My Time Will It Take to Prepare My
Business?
21
How Long Will It Take to Sell My Business?
22
And a Final Consideration
23
Jim’s Bakery Example: Overview
23
Chapter 3: The Sales Process
27
Sales Process Tasks
28
Breaking Down the Steps
29
The Decision to Sell
30
Identify Your Transition Team
30
Position Your Business
31
Interview Bankers and Brokers
31
Listing
32
Prepare Marketing Materials
32
Create a List of Potential Buyers
32
Qualify and Down Select Buyers
34
Letter of Intent (LOI) and/or Purchase Agreement
34
Buyer’s Due Diligence
35
Closing
37
Transition Support
37
Chapter 4: Start Thinking about the Value of Your Business
39
Make Sure Buyers Have the Correct Image of Your Business
39
Does Your Business Have “Curb Appeal?”
40
Be Prepared to Demonstrate Your Business in Operation
43
Talking to Your Employees
44
Jim’s Bakery Example
47
Chapter 5: Who Are Your Buyers?
49
Business Buyers Are Not Impulse Buyers
49
Qualified Buyers
50
Looking for Strategic Buyers
51
Looking for Financial Buyers
53
Get to Know Your Buyer
54
Be Open to “Earn-Outs” and “Stock Swaps”
55
A Word about Ethics
57
Jim’s Bakery Example
58
Chapter 6: Marketing Your Business
61
Where Are Buyers for Your Business Going to Be Found?
61
How Will You Market Your Business?
63
Getting Professional Help
63
Selecting a Sales Agent/Intermediary
64
Having Your Say
65
Marketing Materials
66
Market Relevance
66
Know Your Competition
69
Markets Are Dynamic
71
Your Business Is for Sale. Shhhh, Be Quiet, Shut up!
72
Down Select
73
The Single Buyer Slump
75
Jim’s Bakery Example
76
Chapter 7: Preparing for a Due Diligence Financial Assessment
77 If You Want to Sell Your Business Get Your Head out of the Financial
Sand
78
Putting your Financial House in Order
81
The Dichotomy Dilemma
84
Recasting Your Financials
86
Third-Party Audits
87
Looking Toward the Future
88
Future Performance Should Be Based on a Solid Foundation
90
Jim’s Bakery Example
93
Chapter 8: Preparing for a Due Diligence Legal Assessment
95
Legal Positioning Casts a Wide Net
97
Create a Milestone Calendar
98
Government Regulatory Compliance
100
Intellectual Property
101
Patents
101
Trademarks
102
Copyrights
102
Intellectual Property (IP) Assignment
102
Capturing IP
103
IP Violations Can Cost You
104
Jim’s Bakery Example
105
Chapter 9: Preparing for a Due Diligence Operations Assessment
107 Start an Internal Risk/Opportunity Management Program for Your
Business
109
What Is the Scope of the Enterprise?
111
Preparing for a Customer Satisfaction Infrastructure Assessment
112
Preparing for a Production/Services Infrastructure Assessment
113
Preparing for a Sales and Marketing Infrastructure Assessment
114
Preparing for an Organizational Infrastructure Assessment
116
Prepare an Organization Chart
116
Don’t Overlook the Informal Organizational Infrastructure
118
Preparing for a Personnel Infrastructure Assessment
119
Preparing for a Financial Operations Infrastructure Assessment
121
Preparing for a Legal Operations Infrastructure Assessment
123 Preparing for an Information Management Infrastructure
Assessment
124 Preparing for an Institutionalized Processes Infrastructure
Assessment
126
Jim’s Bakery Example
127
Jim’s Production/Services Infrastructure Preparation Example
128
Jim’s Sales and Marketing Infrastructure Preparation Example
128
Jim’s Organizational Infrastructure Preparation Example
128
Jim’s Bakery Personnel Infrastructure Preparation Example
129 Jim’s Bakery Financial Operations Infrastructure Preparation
Example
130 Jim’s Bakery Legal Operations Infrastructure Preparation
Example
130 Jim’s Bakery Information Management Infrastructure Preparation
Example
130 Jim’s Bakery Institutionalized Processes Infrastructure Preparation
Example
131
Chapter 10: Due Diligence
133
Due Diligence Is a Continuation of Negotiations
133
The Due Diligence Process
134
Document List
135
Preparing an Asset List
136
Tangible Assets
137
Intangible Assets
137
Preparing for the Due Diligence On-Site Assessment
138
It’s a Good Time to Build the Relationship
139
Post–On-Site Activity
140
Jim’s Bakery Example
141
Chapter 11: Describing Your Business Model
143
Prepare an Elevator Speech
144
Prepare a Written Description of Your Business Model
144
Beware—Business Models Change
146
The Franchise Business Model
148
Strategic Decisions Should Be Tested by the Business Model
148
Business Models Affect Valuations
150
Make an aaS of Yourself
151
Jim’s Bakery Example
152
Jim’s Bakery Business Model
153
Chapter 12: Writing Your “Book”
155
Your Book Is a Business Plan and a Marketing Proposal
155
Using a Third Party to Write Your Book
156
Generating Content for Your Book
157
Your Book Provides the Pith of your Business
157
How Long Should Your Book Be?
158
Book Outline
160
Overview
160
Market
161
Competition
162
Business Model
162
Product Descriptions
163
Sales Performance and Projections
163
Operational Description
163
Financial Summary
164
Protecting Your Work
165
Create a Short Handout
166
Jim’s Bakery Example
166
Chapter 13: Create a Virtual Model of Your Business
167
Your Financial Reports Should Be Your Greatest Sales Tool
168
Creating a Spreadsheet Model of Your Business
169
Use Linked Spreadsheets for Greater Fidelity
170
Monthly “Actual” Input
172
Jim’s Bakery Example
172
Chapter 14: Valuation
177
Financial Analysis and Certified Appraisers
179
Value vs. Price
180
Use Caution Applying Metrics
181
Automation Can Help
183
How Can a Professional Appraiser Help You?
183
Valuation References
185
Jim’s Bakery Example
185
Chapter 15: Partners, Vendors, and Other People Who Care
187
Cleaning up the Ownership of Your Business
188
Prior Investors
190
Outstanding Debt
191
Vendors and Critical Suppliers
191
Remove Any Blurred Lines
193
Chapter 16: Who Are the Deal Makers?
195
Finding Professional Help
195
Business Brokers
196
Investment Bankers
197
Types of Buyers and Investors
198
Banks
198
Venture Capital Companies
198
Angels
199
Beware of Sharks
200
Chapter 17: Loose Ends and New Beginnings
201
Transition Planning
201
Future Insurance Needs
202
Buyers Change Hats, and You May Too
203
Taxes
203
Asset vs. Equity Sales
204
Lock-outs
205
Taking the High Road
206
Become a Consultant
206
Appendix A: Example Marketing Handout
209
Appendix B: Example “Book”
211
Index
231

Über Autor(innen)

James F. Grebey is an operations management specialist who has implemented winning strategies for both large and small businesses. He runs his own management consulting business (Diligent Inc.) and has a track record for exceeding client goals and expectations. He is a licensed business intermediary but spends most of his time helping small business owners position their business in preparation for a sale. He has developed a proprietary operations risk assessment method and works with investors seeking to acquire small businesses.