How to Sell Your Business |
Posted: June 22, 2018 |
How to Sell Your Business
If you are a company owner, this article will help you understand better before you put your business on the market. Read on and find out how. The process of selling a business has become more complex nowadays. Entrepreneurs who buy existing businesses are more cautious than ever. They have ways to determine the future of a business. A business not performing well at present may be considered by a buyer too risky! A business with strong revenues will most likely drive the sales price even higher. Know that preparation is the key. As a company owner, you must understand the preparation needed to make before making the decision. Strategic planning is the solution. Planning early enough will result in a successful sales. This can actually take years to ensure that you get the maximum sales value. Carefully understanding your business current value will help you know and plan the actions that you have to take before you plan the exit. Owners must identify the most important factors that drive their business’ value such as the whole system and the processes, management and the employees, the facilities and equipment, the current financial condition and most importantly its future growth potential. In this article, expert describes some of the most important issues that business sellers need to know. Find out why some businesses are difficult to sell and stay for long in the market. You can also learn how you, as the owner of the business, plays an integral part in the success of the sales. Find out what type of business owner you are by taking an evaluation test included in this article. Knowing this and more will give you a better understanding of your role and ways you can do to improve. Read the whole article to learn more! Owner, Sell Company?Are you the owner? About 50% of all SMEs in Norway are self-managed companies. If you are in this category of business owner, you should continue to read. The article will give you an overview of how to increase the value of your business. A typical Norwegian company is the culprit of a person who also manages the company (in English Founder-Led Company). An owner can not be terminated. Almost all power is collected on one hand. Most decisions are made by the owner. Such businesses can be difficult to change or sell because "the owner is the business" In this article, we describe some of the issues in this type of business and give you some tips on how to make your business marketable. But first little background. 1) The farm is a reflection of the ownerTo understand the business, start by understanding the owner. This person's thoughts, emotions, words and deeds materialize in the company. There are typical 6 - 7 employees in a Norwegian company. These are largely affected by the manager / owner. An owner-owned business is typically a life-work. Therefore, a generational shift and especially a sale of the company is also a goodbye to a life-work. The owner shall give power, his daily work, a close relationship with the employees and a good portion of status and recognition. After a change of ownership, the invitation to the bank's Christmas table may be missing. A change of ownership is therefore not something an owner wants to implement. It is often experienced as a forced process, perhaps driven by illness or old age. Why do some companies grow but growth does not grow with others? It is usually a glass ceiling of about 10 employees. Research suggests that the freedom to self-determine means more to the owner than growth and development. Freedom versus growth hangs inextricably into where leads and owns the same person. Freedom to prioritize is more important to most owners than the ability to develop the business. Therefore, there is a danger that growth will not go out and the company closes. Here it may be a good idea to establish good governance in relation to where your business is. Most businesses in this category are too dependent on the owner. So how does this look like you? What type of business owner are you? Take the test - it only takes 1 minute. Should you sell the company, the test can give you more insight into what to focus on. Research shows that there are different types of business owners. By taking the test you get a better understanding of your role as business owner and how to further develop your business. Here is the link to the test: https://www.ownomics.com/l/quiz-hvilken-eierleder-er-du/ 2) Ownership managers delay the change of ownership Norwegian owners expose their ownership. This is understandable. The owner will waive a lifetime. Ownership change is subject both to psychological processes, but also to the fact that it is a complicated, mercantile process that the owner has no experience with. Valuation, value drivers, due diligence, corporate brokerage, tax, strategy, negotiations, acquisition processes, settlement models, financing solutions. These are complicated themes. Seriegrunderskap is not normal. Few owners have experience with exit. And in addition, consultants who provide this kind of services can often be ongoing. It may often be useful to talk to other owners who have completed a change of ownership. Owners often listen to other owners. Business owners of small businesses do not use consultants. The owner usually has no experience with either generational change to the children or with the sale of the business. If it's a family business where senior in their time took over after their parents, ownership changes to third generation are often easier for senior citizens. 2nd generation senior can then draw on her experience from when she was junior. When we work with a change of ownership, we start with the dreams, interests, family, plans after the change of ownership, etc. Once the dreams and personal plans are made, motivation comes to make changes. Life after exit is an important element in the discussions. Our identity is made up of our different roles. When the owner's role and leadership role is gone, a vacancy may arise. Read the whole article here: https://www.ownomics.com/eierleder-selge-bedrift/
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