Throughout the book, I have been hinting at the impor- tance of a team to evaluate your business by accelerating the profits, the revenue, and the multiples.
It’s hard at times to accept the fact that we can’t do everything all by ourselves. That’s our heart’s desire, but it’s not realistic. The truth is that you probably can’t sell your business on your own. The hard truth is a business will not sell itself.
It goes back to the business owner hero we envision ourselves to be. A hero is in control. We believe that we are in control. At least, that’s what we tell ourselves.
We like to be in total control of our business, just like we like to be in total control of every part of our lives. But let’s look at that assumption. Are we always, 100 percent in control of everything? No, not even close.
I realize that there is very little I can control in my personal life or in my business. I have learned the value of hiring experts. When I do, I can regain control of those important areas. It’s an oxymoron, but it really does work this way: Giving up control can give me more
The Buyer’s Team
The buyer who is interested in your business—and it doesn’t matter if it’s a Private Equity firm, a Strategic Buyer, a Mergers and Acquisition firm, even if you sell to the next generation—will be scrutinizing your business. Your buyer will have their own team that will assess the risk they are taking to buy your business. That buyer is going to look at all the items on the checklist I gave you in the previous chapter—the one that outlines everything you need to be doing in your business for a successful sale.
Here is the list again:
Revenue (the total amount a company earns from sales)
Profits (the amount of money left from revenue after
subtracting expenses, debts, and operating costs.
EBIDA
Multiples
Employee retention
Businessworthiness: Is the business owner too much a
part of the everyday operations?
» Does the business owner have goals outside of the business that will sustain them throughout their later years?
The buyer will bring their team. Doesn’t it make sense for you, as the selling business owner, to have your own team?
Remember, you give up some control to your team while plan- ning and organizing all the moving parts. However, you will have much more control when you are ready to sell after you have taken the advice and finished the tasks your team members recommended. These recommendations can increase your profit margin relatively
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