R. Shawn McBride recently spoke about how to get in front of your business and succeed. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1498234473541787/
Hi folks, Shawn here with you. I want to talk about a very serious topic for business centers. You always want to be ready to sell and how you ramp up the sale, how you get ready to sell. We really want to be managing this process all along.
The reason you always want to be ready to sell is that you don’t know what’s going to happen, right. We talk in business partnerships about the four Ds, death, disability, divorce, disagreement. All these things are unfortunate things that happen all too often and upset business partnerships but they can also happen in a single-owner companies, so we want to be prepared in case one of these events happens.
Furthermore, we might get a third-party offer at an unexpected time. Maybe somebody just happens to be doing rollups in your industry, they just happen to be looking for companies like yours and you want to get ahead of it. Well if your company’s ready to sell, you are in a great position. If you’re not ready to sell, you may waste time getting ready to sell and by the time you’re ready, the opportunity may have already passed because many acquirers are impatient, they’re ready to go, they want to close a transaction. If you’re sitting there getting your house in order, you’re losing time and energy. So we really want to do things right from the beginning.
How do we ramp a company up for sale? How do we get it ready? Number one, great books and records and I talk about this in my book Business Blunders, www.mcbridebook.com, one of the checklist items that I always say to do is have great books and records. Having books and records in order, ready to go in case an acquirer shows up, you really want to be ready to show them your best foot and say this is who we are. You also want to understand your business. Have the customer list ready to go, have your expenses, know your balance sheet, know your income statement, all of this stuff is fundamental to being ready for an acquisition.
Having all your contracts in order on standardized form in the most updated version, right, you may be changing a contract over time and you will be updating it as you go to make sure you’re ready to go. You want a strong management structure that is not dependent on any one person. This is one of the things that an acquirer is gonna look at, is how much is the business and absolutely and necessarily need the owner there, and if it falls apart without the owner there, you’re gonna have a hard time selling it for a good value you see, you want to get ahead of this, by making sure that you have multiple people involved in your management.
These are all very, very simple things to do along the way and if you have your ducks in a row as you’re running your business, you’re gonna maximize your chances of selling for a good price. If you waited until the last minute, you’re gonna have a problem, and they’ll be some cleanup and some other stuff you can do at a manage sale if you know a sales coming three to five years ahead, there’s even better opportunities with a startup. Managing your expenses, looking at how the income statement looks, managing capital expenses, doing a lot of great things that really make a company more valuable three to five years but regardless you need to be prepared to sell regardless of where you are in your structure because you just don’t know what’s gonna happen.
A lot of great things you can do, so work with somebody that you trust, find somebody that knows this stuff, they can come in and advise you, it’s really gonna payoff at the end, whether you sell in the short term you get that unexpected offer or whether you sell 10 years from now. Getting your house in order and doing the things you need to do now to sell will not only add tremendous value in the event that you do get that offer but I guarantee you, the same types of things are the types of things that are gonna help you run your business better, be more efficient and make more money.
So the time to do it is now, to get ahead of things. Don’t wait, get ahead of it, start talking to somebody you trust. If you want more information about this, check us out www.mcbrideforbusiness.com/blog we talk about this frequently. I would love to come in and talk to you or your groups and organizations, I can either do it as a speaker or for training or for a keynote, or we can sit down really one on one, whatever is best for you, let me know, we’d love to talk to you about what you’re facing and how to help you ramp your company up for sale as soon as possible, Shawn McBride and I know I’ll be talking to you soon. Like our Facebook page, R. Shawn McBride public and you can subscribe to our YouTube channel McBride For Business.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Manuel De La Pene.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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