Exciting things happen!
How many times has a business broker introduced prospective sellers to me?
When they do, relevance and timing are important. For example:
- If their seller is in an emergency and must sell.
- Or if their seller is simply burned out and is at the point of “just walking away,” Then neither of these scenarios is a good fit.
But if their seller is in a strong financial position and without a sense of urgency, great outcomes can be realized.
Why?
Giving a business a full year to properly prepare creates the opportunity to:
- Implement valuable changes to their operations
- Re-examine their brand and offerings to ensure that they are relevant to consumer
trends. - Consider the seller’s competitors to clearly demonstrate why the seller is the exception to the pack.
While some brokerage firms may dig deeper into their seller’s information, many are simply
not in this area of expertise. They are business brokers, not necessarily business strategists.
Taking a comprehensive approach to conduct a deep dive into the business generally takes three
months. It requires a process to identify and remedy things that actually pull down the value
of a business.
This process results in an approach for increasing business value.
- It provides a roadmap to make necessary changes to boost the value of that company.
- It may also unlock other discoveries no one was aware of!
- It looks beyond numbers and takes all things into account so that at the point of sale,
the handover goes smoothly.
Result?
When they truly are ready to sell, the difference between receiving $8 million versus $3
million is both evident and appreciated. Or the difference between $35 million and $75
million.
It is good for the seller, and good for the broker.
Source: ForsythAdvisors
On several occasions, the buyer has requested to work directly with us to continue evolving
their growth strategy. When they do, we always encourage them to work with business
brokers who are in our vetted network. Because chances are, those buyers are likely to
continue acquiring other competitors or new business along the way.
Yet this is only the tip of the iceberg regarding what else can be done to deliver a strong payout. A
comprehensive strategy to improve and reposition the business to be worth more is the thing
that drives higher sales results with a higher payout.
For over thirty years, John has partnered with Business brokers who witness the results of
collaboration in meeting the mutual objective of taking care of the clients we collectively
serve.