Prepping a company for sale

1. Make Changes which will increase the value of your company:

  • Create the culture of growth that buyers seek.

  • Create written procedures for the most common processes.

  • Know and track your Key Performance Indicators (KPI’s).

  • Continually track financial performance; share appropriately with subordinates.

  • If needed, retain management consulting assistance.

2. Reduce Dependencies to enhance the selling price

  • Customer concentrations

  • Dependency on one or two key employees

  • Supplier dependencies

  • Product dependencies

3. Train and motivate subordinates to make decisions (Buyers want to inherit a

strong team).

  • Delegate and encourage employees to make decisions

  • Allow employees to do the problem solving; owner should focus on innovation

  • Create a culture of collaboration and listening.

  • Take a month-long vacation with no ill effects to the business.

3. Understand and share financials KPI’s (Key Process Indicators).

  • Train your managers to understand business financials.

  • Train managers to generate and track KPI’s

  • Understand the difference between cash flow and profit.

  • Incentivize managers based on profitability and growth.

4. Understand the need for and implement a Marketing and Sales Plan.

(Buyers want to see a marketing and sales machine that can generate growth.)

  • Focus on growth. (Buyers don’t want companies that are stagnant or declining).

  • Develop an annual Marketing and Sales Plan

  • Implement and follow the plan.

  • As President, focus on your key customers: you must talk to them regularly.

5. Know and exploit your competitive advantage. Ensure that you and your employees can succinctly describe how you are different from your competition.

(Buyers want to know why your business is special and how that can be leveraged.)

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What They Say About Us

"I can’t begin to express how grateful we are for your help and guidance with the sale of our business.  You managed to lay out every step we needed to do.  You found us the perfect buyer and held our hands to the very end. When we look back on the whole experience, we realize that it could have been a nightmare without you.  We felt as though you were always by our side to either answer questions or to just calm our nerves.  We would highly recommend you to anyone looking to sell their business. Your experience and knowledge in everything from valuation to marketing to execution of all the little details made all the difference."

Home Services Cleaning Business (Seller)