Don’t even think about it, til these items are checked off
To buy and sell businesses in the new world of M&A, you must plan strategically and be ready to move quickly. Being proactive will help you be prepared for the fast-moving world of mergers and acquisitions. You will be able to project the attitude of cool strength and confidence to get you through introductions, negotiations and closing.
A multitude of factors drive the pace of deals, and not all are under your control. If you can front-load your timeline and take care of items efficiently, you won’t be the one holding everyone back.
Why is this important? Let’s be realistic. We both know that being on top of things and being proactive sends a message that you are powerful. That puts you in a good light to the players in the current deal — and opens doors to future opportunities.
These 7 tasks need to be completed, before you buy or sell a business:
- Talk to your tax professional. Get a clear picture of the tax ramifications of your buy-sell timeline. Should you accelerate your plan before tax laws potentially change?
- Expect more from your banker. This key person on your buy-sell team should take your call on the first ring. Are you wasting your time with someone who doesn’t know you, respect you, or understand your plan? If you’re not getting the service you deserve, make the change now before you need personal attention to complete your deal.
- Hire stronger people. People in our industry are jockeying for position as the pandemic continues to destabilize the employment landscape. There are good people out there who are suddenly available, and you should be prepared to pay well to get them. Once you have them on your team, invest in building a company culture that will keep them motivated to stick around.
- Build your network. Setting the stage for successful deals starts with discreet inquiries. Next are conversations between CEOs, which are often shepherded by a paid advisor or connector who is compensated for the introduction. You want to be seen as a peer in these conversations. Who you know is important.
- Get fit. You need energy, a clear head, stamina and a positive attitude. Mental and physical fitness are things you can control. Control them.
- Write things out longhand. Nothing can replace a written plan. Get it out of your head and onto paper. This is where flaws and gaps become visible. It’s how you find new ways to gain the advantage. Review your plan and take action daily.
- Renew relationships. Make time for your family, your friends and your spirituality. You will need to live life on the other side of the deal, so prepare today for what that will look like. Whether you’re buying or selling, there’s more to life than business and making money.
When you proactively take care of these 7 items, you’ll be better prepared to enter the fast-moving buy-sell landscape with power and confidence.
For more advice on preparing for business for sale, subscribe to our newsletter or call me at 561-543-2323 for a confidential consultation.