- On November 15, 2016
Making Your Business Desirable and Marketable
Abraham Lincoln said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”
Selling a business is one of the most important financial (and emotional) events in a business owner’s lifetime, and should be a well-planned and controlled process of making a business desirable and marketable. Ignoring death or disability, which may require the sale of the business at a moment’s notice, a 2-5 year horizon to prepare the business for sale is ideal.
What should you do during this 2-5 year horizon? FORM a Team of Experienced Professionals: Many sellers hesitate seeking assistance early on from their attorneys, accountants, investment bankers, lenders, and executive/career coaches when preparing for the sale of their business. Unfortunately, many business owners unwisely focus on fees and the short-term as opposed to the long-term and net value, thereby leaving significant opportunities on the table. A team of experienced professionals can provide great value and help you with the following:
- Research and understand the market place and your competition.
- Align Key Employees and Management to work towards the sale.
- Diversify your customer base, develop reoccurring revenue and shed unprofitable or slow paying customers.
- Address customer contracts, supplier contracts, employment agreements, leases, buy-sell agreements, non-competes and other restrictive covenants.
- Document key operational processes and modernize computer systems to better fit potential buyer processes.
- Implement annual business valuation review, purchase price allocation and personal goodwill considerations.
- Address accounting practices, controls and tax records to provide credibility to purchasers by way of audit, review or compilation attestation services.
- Review business, legal and tax structuring, compliance, operations and intellectual property protection.
- Properly structure business ownership (e.g., stock and LLC units of ownership) for tax savings and asset protection purposes.
- Establish or maintain solid and trusting lending relationships to facilitate third-party financing and readying the seller/owner’s personal financial planning for anticipated seller-financing concessions.
For more information on how Kelleher & Buckley, LLC can assist you, please call our attorneys at (847) 382-9130 or contact:
Andrew J. Kelleher, firstname.lastname@example.org;
David P. Buckley, email@example.com; or
Helmut E. Gerlach, Chair, Corporate Practice Group, firstname.lastname@example.org.