Ready, Set… Sell!
Unsplash – Scott Graham
By Doris Valade, Business and Leadership Coach, The Malabar Group
E
very business will reach the point when it’s time to sell. The sale may be to another family member, to employees, or to a party outside the company. As the business owner, the decision will be one of the biggest of your career, so make sure it’s not a quick decision. You need time to prepare your company and yourself if you’re going to get the best price.
I sold my company in 2017 after 35 years of hard work, long hours and many ups and downs. Over the years, I watched my father in his business. In 2004, at the age of 75, he was tired and ready to
TRUCKLOAD LESS THAN TRUCKLOAD STORE DOOR DISTRIBUTION COLD STORAGE COURIER/EXPEDITE HOME DELIVERY DEDICATED SERVICES
Your one-stop solution for all your refrigerated logistic needs
1-800-665-COLD | ERBGROUP.COM | SALES@ERBGROUP.COM
sell. But he had no exit strategy. He didn’t ask for help in selling. He simply put the word out in his industry that the company was for sale. Unfortunately, word of mouth was not enough. No buyer came forward and he ended up selling the assets below market value to a smaller local company. Looking back, he regretted waiting so long to sell and not preparing for the sale in advance. I learned from his regret. What do you know about selling a business? I first thought about selling my business in 2008. The economy was in turmoil and so was my company. We weren’t profitable and I was tired. I knew nothing about selling a business, so I attended a free one day “Grow and Exit” conference in Toronto, hosted by Generational Equity, a merger and acquisition (M&A) advisory firm with years of experience selling businesses across North America.¹ During the conference, I gained a beginner’s knowledge on business valuation and what the M&A sales process looks like, but I still had a lot to learn. At the end of the conference, I met with one of the advisors to ask about selling my business. He asked, “Doris, is your company profitable?” When I replied ‘no,’ he told me (politely) that my business wasn’t ready to sell. “Go back to work and make it profitable,” he said. So, that’s what I did. TIP! The best time to sell your business is when it’s doing well. Selling takes planning After the conference, my initial priority was creating a detailed business plan. I asked key members of the team to help with the main components — a financial review, a marketing plan and a SWOT Analysis (Strengths, Weaknesses, Opportunities & Threats). We focused on reducing expenses and increasing sales. We identified areas for improvement. We noted places where efficiencies could be implemented in our day-to-day operations. We examined the top 20% of our expenses (as these Continued on page 8
6
BlockTalk - Spring 2022
www.meatpoultryon.ca
