Selling Your Company for Maximum Value
The Corporate Cranium believes in the “Buy-Build-Sell” philosophy of business ownership and wealth creation. One of our goals is to help our clients understand their business as an investment, not just a livelihood. We want to help you to use your business to leverage the creation of wealth, which can truly be life-changing. Along with our team approach of providing legal advice and business coaching, you will also receive the full complement of services associated with a business sale. We can help ensure that you make the best and most profitable sale of your business and prepare you for the acquisition of your next one!
Keys to a Successful Transition to the Next Generation
For many businesses, the most logical buyer may be a current employee or family member. There are several critical steps for your company to take prior to beginning the transition to the next generation of company leadership.
Legal: Your succession plan may include Shareholder Agreements, Buy-Sell or Redemption Cross-Purchase Agreements, Employment Agreements including non-competition and confidentiality provisions, Stock Purchase or Stock Option Agreements, Promissory Notes and Security Agreements.
Business Valuation: Whether it is used for your sale, for buying out a partner, or for selling an interest to a new partner, a valuation of your business and developing a methodology for annually repeating that valuation is critical.
Business Coaching: A critical aspect for ensuring the successful transition of ownership is developing a business coaching plan to ensure the success of your successor. You can’t simply assume your successor will succeed, particularly if your buy-out is contingent on the continued success of the company. Using a business coach to develop a plan will ensure your successor really understands and can maximize your business.
Financing: Oftentimes partners or potential new partners lack the resources for a cash buy-out of another partner. We will discuss whether the purchaser uses personal, bank or company financing or some combination thereof, as well as the options for using life insurance and deferred compensation plans.
Maximizing Your Potential Sale Price
Whether it is a sale to an outsider or to current employees, it is important to be prepared for each step in the transaction.
Set the Stage for the Sale
The first question most business owners have is, “What is my business worth?” The Corporate Cranium goes farther than simply looking at the snapshot of your current value. We will help you determine what your business can be worth under optimum conditions and then help you get there. By including a business coach with a proven method for driving revenue to your bottom line and identifying the areas your business has for potential growth, we can ensure that you are selling at the top rather than the bottom of your sales price potential.
Find a Buyer
It is critical to examine all of the potential sources for a buyer including internal candidates, related industry buyers and unrelated investors. We will help you examine all of your options, and if appropriate, introduce you to a business broker that we have confidence will understand how to discreetly and effectively market your business.
Close the Deal
The final component of the sale process is to ensure you have an effective negotiator and legal counsel to structure the transaction. With over twenty-five years of negotiating experience, Halagan Law Firm, Ltd., together with the financial and accounting professionals associated with the Corporate Cranium, will ensure that your legal interests and your profits are protected.