There are internal and external factors that help you realize an above average value for your Company, if you plan and execute the game plan with diligence and perseverance and allow a reasonable time frame. The planned and prepared Seller will get the best deal possible as well as decrease the amount of stress and emotion throughout the deal. Click here to learn how to create value.

There are two situations in our experience with a high impact on value. First there is an unprepared seller on an unsolicited offer and second is an overvalued approach to the market to try and test the limits. Both approaches usually end up disappointing on the value side and involve a long drawn out and emotional process as time favors the Buyer.

One of the highest value builders comes from external sources. We would say that a well-prepared product or service portfolio, which allows a strategic buyer to step in and grow the company as well as offering a new market, will certainly offer some added value for the Seller.

So how do you find the best strategic fit? Well the more sophisticated Buyers will have their own teams that will find you and if they find you attractive, an offer is forthcoming. But what if you don’t have a team around you? That is when the Intermediary will assist best. They will work hard locating additional Strategic Buyers, but more importantly, research the market to support the highest potential value.

Since for most Companies Employees are the most valued assets, retaining all of them in a transition is always a desirable outcome for the Buyer and the Seller. What can you do prior to and throughout the during the process as a Seller?

If you chose not the disclose to your Employees that you are selling:

•Keep a culture that is appealing to the Buyer and keep motivation high. You will need to remove yourself from all the decision making, and start transferring some responsibilities do the team.
•Make sure the salaries and compensation are within the market, as otherwise the Buyer my make a value adjustment to correct the expenses.
•If you have Family or “special employees” that are not contributing to the bottom line, perhaps you retire them prior to a transition.
•Non – compete and contractual arrangements are situational and should be discussed between the parties.

If you chose to tell them; in our view in a smaller and close knot team, you may do it prior to starting the process. We recommend however in most cases to offer the news once the Buyer and the Seller have a definite agreement and take a common and personal approach in meeting with the people either individually or in a team setting.