Tuesday, November 29, 2011
Monday, November 28, 2011
If you are thinking about selling your business in 2012, whatever you do, don't metaphorically spray your best buyers with pepper spray!
Specifically, during negotiations, many sellers automatically take an aggressive position and assume that a buyer is trying to take advantage of them. While this may be true at times, the majority of buyers are seeking a win-win outcome because their bigger goal is to ensure that the business continues to be successful after the sale.
To make sure your don't douse your deal with cayenne pepper, keep in mind these 3 important tips:
1. Know the market value of your company.
Use my Back-of-the-Envelope Valuation Worksheet (register at ExitJourney.com for your free download), so you can approach the price negotiation from a knowledgeable position, not an emotional position.
2. Make a list of your non-negotiable deal terms.
Know and protect what's most important you, but be flexible on other terms that may be very important to the buyer.
3. Be transparent with the buyer, beginning with your reason for selling.
If you are open and forthcoming with information, you will set the buyer at ease and reduce their concerns right from the start.
Just like big cultural shifts in our world, selling a business will always be a stressful time. However, if you approach the negotiation standing in the other parties' shoes, the transaction is more likely to unfold positively and the training period after the closing will be a time of excitement for all about the what's to come.
I'm Julie Gordon White, Certified Business Broker, Amazon Business Best Selling Author of "EXIT! 12 Steps to Sell Your Business for the Price You Deserve" (and proud UC Davis Grad!), signing off until next time! For more videos, tips and tools, visit http://www.exitjourney.com/.
Saturday, November 26, 2011
Tuesday, November 22, 2011
Sunday, November 20, 2011
Selling the Empire’s of Oprah Winfrey, Richard Branson, Donald Trump, Martha Stewart and Simon Cowell
Today I was sitting at my desk and for some reason I started thinking, “If I were selling the business empires of Oprah Winfrey, Richard Branson, Donald Trump, Martha Stewart and Simon Cowell, what would be the marketing message they would want me to communicate to potential buyers?”. After laughing OUT LOUD all by myself in my office J, here’s what came to my mind (I’m still smiling as I type this!):
“This company has been an unexpected spiritual journey for me and my wish for the new buyer is that the legacy of living your highest life and best life would be continued for our viewers, our readers and for the amazing person that sees the value in this company and desires to take it to the next level.”
“Building this company has been an amazing seat-of-the-pants ride for me and the next man or woman who takes it over better have their knickers on tight!”
“This is THE most AMAZING and OUTSTANDING organization on the planet and anyone who wouldn’t pay top dollar for it is a fool. You’re fired.”
“You will never find a more neatly organized and categorized set of financial statements and business processes anywhere. In fact, every strategy, decision and tactic we have ever made during the history of this company has been documented and placed in color-coded binders, with a cross-referenced alpha-numeric labeling system and placed in a water and fire proof vault. Would you like some oolong tea and a scone while you thumb through the volumes?”
“If you are as borrrrring as a karaoke cabernet singer on a cruise ship, don’t even bother making an offer. Bloody hell. Next!”
I’m still lol! I’ve got to get out more often!
When the day comes to sell YOUR empire (small or large, it’s all relative!), what will your marketing message be? Be sure to make it provocative enough for someone to want to learn more and eventually sign on the bottom line, but resist the urge to overly “fluff” things up because fluff usually goes flat during due diligence.
I’m Julie Gordon White, America’s Favorite Business Broker, signing off for now.
Take care, talk to you soon! jgw.