What I Wish I Knew Before Selling My Business
Many business owners initially attempt to tackle a sale independently, only to realize later that they could have benefited from expert guidance. This blog will explore the common insights shared by sellers who attempted to sell their businesses independently before seeking professional assistance. These insights can help you make informed decisions and maximize the potential value of your business.
Accurate Valuation: The Key to Success
One of the first things sellers often wish they knew before selling their business is the importance of an accurate valuation. Without a proper understanding of the value of their business, sellers run the risk of either overpricing or underpricing their company, leading to missed opportunities on the one hand or a lack of interest from potential buyers on the other. Agenda Health specializes in valuing healthcare-specific businesses and keeping a close watch on related transactions in the market at large; this can help sellers accurately determine the worth of their business and set an asking price at the crossroads of ambition and achievability.
Preparation and Timing: The Recipe for a Smooth Sale
Selling a business is something that takes time and effort. It requires careful planning and preparation to ensure the company is in its best possible shape before being presented to potential buyers. Sellers who wish they had known this earlier often realize that investing time and effort into preparing their business for sale can significantly increase its attractiveness to buyers and maximize the overall value of potential offers.
- Organizing financial, clinical, and legal records.
- Resolving outstanding legal or operational issues.
- Ensuring the business is in good financial and operational health.
- Reviewing KPI trends and tracking the right metrics
- Following the trends and regulations of the market in which the business operates
- Making succession plans and reviewing the ownership’s daily involvement
Additionally, sellers need to consider the timing of their sale. It makes sense to sell when the business is performing well and the market conditions are favorable. Waiting until the last minute or selling during an economic downturn can negatively impact the sale price and the overall success of the transaction. At Agenda Health, we are constantly monitoring matters such as regulatory updates, proposed legislation, and other similar matters external to a seller’s control which could dictate the optimal timing to approach the market for a sale.
Confidentiality: Protecting Your Information and People
Maintaining confidentiality throughout the sale process is paramount for sellers and is often underestimated. When sellers attempt to sell their business independently, they may lack the expertise or resources to ensure that sensitive information remains confidential. This can result in leaks of proprietary business information or unwanted disclosure of the sales process itself, which can have detrimental consequences for the business and the seller.
One potential harm of employees finding out about a sale too soon is the potential for unrest and uncertainty within the workplace. Employees who learn about a possible deal may become anxious about their job security and the company’s future, leading to a decline in productivity and morale and an increased likelihood of key employees seeking employment elsewhere. Additionally, if confidential business plans/strategies or news of the contemplated sale were to fall into the hands of a competitor, such knowledge may be used to disadvantage the seller’s business in the market, potentially harming the business’s position and profitability.
To mitigate these risks, working with professionals who understand the importance of confidentiality and have established protocols to protect sensitive information is crucial. Agenda Health can help sellers implement measures such as non-disclosure agreements and controlled access to confidential documents via secure online data rooms. By keeping the sale process and proprietary information confidential, sellers can maintain stability within their business, prevent potential harm to their reputation, and ensure a level playing field during negotiations.
Selecting the Right Buyer: Finding the Perfect Fit
Sellers who attempt to sell independently may not know if a buyer is qualified or a good cultural fit to carry their business into the future. They may receive interest from buyers who need more experience, financial resources, or cultural alignment to run the business successfully. Agenda Health vets and qualifies every buyer in our vast network of potential buyers to increase the likelihood of finding alignment between sellers and the ideal buyer.
At Agenda Health, we constantly observe market news and trends to know who the active buyers are in each of our healthcare sectors. We have a wide network of buyer relationships with those who have demonstrated an ability to effectively and efficiently achieve a successful close that provides a win-win for each party. We constantly communicate with these buyers to ensure our awareness regarding their latest acquisition interests. By maintaining a disciplined approach to our buyer relationships, we can provide unparalleled guidance in finding sellers the best fit for an acquirer for their business.
Expert Guidance From Start to Finish
The most crucial insight shared by sellers who attempted to sell their business independently is the value of expert guidance from listing to closing. Selling a business requires specialized knowledge and experience at each phase of the process. Sellers who go it alone often find themselves overwhelmed by the intricacies of the transaction and may make costly mistakes.
Working with Agenda Health provides sellers peace of mind, knowing that their transaction is handled with care and attention to detail. We guide sellers through every step of the process, from valuation to marketing to negotiating the deal, including the ongoing negotiations that can occur throughout diligence through closing.
If you’re a healthcare business owner looking to sell, don’t assume the risks of attempting to market your business on your own. Contact us today to get the expert guidance you need for a successful and profitable sale.