If you are in the Omaha area and are looking to put a business on the market, there are a number of steps you need to take to make sure you are ready to sell your business. Omaha business owners would do well to remember to take these steps before listing their businesses:
1. Determining their options and exit strategies
2. Determining the valuation range for the company
3. Enhancing the value before marketing the company
4. Researching potential buyers
Options and Exit Strategies
When you look into what it will take to see your business, there are a number of options that may be available to you. From a leveraged buyout to a minority recapitalization, there are a number of methods by which you may sell your company. You will need to determine what option is best for you, your employees, and the long-term aims of the business. Further, you will want to determine what your exit strategy will be before you list your business – find an approach that will make for as smooth a transition as possible.
Valuation
A critical step in selling your business is determining its valuation. Often, buyout deals can be ruined by the buyer and seller having different ideas of what a business is worth. Therefore, you would do well to have a third-party valuation company help you determine what your company is worth before you put it on the market. Doing so will give you reasonable expectations going into negotiations.
Value Enhancement
From six months to a year before you sell your business, you should take steps to increase its value. You can do things such as get the company’s financials in order, garner more sales, and other small but valuable steps to make your company more desirable to buyers. In general, the changes should not be large or risky, but instead things that will tell buyers that they are making a worthy investment.
Research Potential Buyers
For smaller and middle market companies, there are often a number of buyers available. Therefore, you must research potential buyers in order to determine which ones are qualified and well suited to purchase your company. This research process should be thorough and should be focused on reviewing competitors, customers, private equity firms, and strategic buyers. Although this process can be time-consuming, it can pay off in the long run. Proper research can lead to the best possible outcomes as you prepare to sell your business.
