Contents
Chapter 1:Let’s Have a Conversation
Chapter 2:Avoiding Seller’s Remorse
Why Are You Selling Your Business?
Your Goal Is to Maximize the Value of Your Business
Not Every Business Can Be Sold
Can I Sell My Business If It Has “Warts”?
Why Do I Need to Position My Business to Sell It?
I’m Really Busy—How Much of My Time Will It Take to Prepare My Business?
How Long Will It Take to Sell My Business?
Jim’s Bakery Example: Overview
Create a List of Potential Buyers
Qualify and Down Select Buyers
Letter of Intent (LOI) and/or Purchase Agreement
Chapter 4:Start Thinking about the Value of Your Business
Make Sure Buyers Have the Correct Image of Your Business
Does Your Business Have “Curb Appeal?”
Be Prepared to Demonstrate Your Business in Operation
Chapter 5:Who Are Your Buyers?
Business Buyers Are Not Impulse Buyers
Be Open to “Earn-Outs” and “Stock Swaps”
Chapter 6:Marketing Your Business
Where Are Buyers for Your Business Going to Be Found?
How Will You Market Your Business?
Selecting a Sales Agent/Intermediary
Your Business Is for Sale. Shhhh, Be Quiet, Shut up!
Chapter 7:Preparing for a Due Diligence Financial Assessment
If You Want to Sell Your Business Get Your Head out of the Financial Sand
Putting your Financial House in Order
Future Performance Should Be Based on a Solid Foundation
Chapter 8:Preparing for a Due Diligence Legal Assessment
Legal Positioning Casts a Wide Net
Government Regulatory Compliance
Intellectual Property (IP) Assignment
Chapter 9:Preparing for a Due Diligence Operations Assessment
Start an Internal Risk/Opportunity Management Program for Your Business
What Is the Scope of the Enterprise?
Preparing for a Customer Satisfaction Infrastructure Assessment
Preparing for a Production/Services Infrastructure Assessment
Preparing for a Sales and Marketing Infrastructure Assessment
Preparing for an Organizational Infrastructure Assessment
Don’t Overlook the Informal Organizational Infrastructure
Preparing for a Personnel Infrastructure Assessment
Preparing for a Financial Operations Infrastructure Assessment
Preparing for a Legal Operations Infrastructure Assessment
Preparing for an Information Management Infrastructure Assessment
Preparing for an Institutionalized Processes Infrastructure Assessment
Jim’s Production/Services Infrastructure Preparation Example
Jim’s Sales and Marketing Infrastructure Preparation Example
Jim’s Organizational Infrastructure Preparation Example
Jim’s Bakery Personnel Infrastructure Preparation Example
Jim’s Bakery Financial Operations Infrastructure Preparation Example
Jim’s Bakery Legal Operations Infrastructure Preparation Example
Jim’s Bakery Information Management Infrastructure Preparation Example
Jim’s Bakery Institutionalized Processes Infrastructure Preparation Example
Due Diligence Is a Continuation of Negotiations
Preparing for the Due Diligence On-Site Assessment
It’s a Good Time to Build the Relationship
Chapter 11:Describing Your Business Model
Prepare a Written Description of Your Business Model
Strategic Decisions Should Be Tested by the Business Model
Business Models Affect Valuations
Chapter 12:Writing Your “Book”
Your Book Is a Business Plan and a Marketing Proposal
Using a Third Party to Write Your Book
Generating Content for Your Book
Your Book Provides the Pith of your Business
Sales Performance and Projections
Chapter 13:Create a Virtual Model of Your Business
Your Financial Reports Should Be Your Greatest Sales Tool
Creating a Spreadsheet Model of Your Business
Use Linked Spreadsheets for Greater Fidelity
Financial Analysis and Certified Appraisers
How Can a Professional Appraiser Help You?
Chapter 15:Partners, Vendors, and Other People Who Care
Cleaning up the Ownership of Your Business
Vendors and Critical Suppliers
Chapter 16:Who Are the Deal Makers?
Chapter 17:Loose Ends and New Beginnings
Buyers Change Hats, and You May Too