Moving On

Book Description

Selling a business is a critical event that may occur only once in a lifetime. This is an event when you can’t afford to make a mistake. Small business owners need basic guidance from someone who doesn’t have a stake in the sale of their business. Moving On: Getting the Most from the Sale of Your Small Business is a straightforward, highly pragmatic discussion that will guide you through the sales process and help you avoid some of the common pitfalls faced by business owners that lack experience with the process. This book will assist you in finding the right professional help when you are ready. James F. Grebey, an operations management specialist who provides small business owners with insight into the sales process, helps you recognize pitfalls that could impact your sale negotiations. This book is replete with tips and tools that you will need to drive a successful sale of your business, such as writing the "book" used to market the business, and recommendations to create a working model with a dynamic (what if) spreadsheet to justify your sales projections. Readers will learn where to reach out for qualified professionals that can help with the sale process. Click here (https://goo.gl/GgLNM8) for the author's related article "The Benefits of Effective Due Diligence for Investors and Business Owners" featured as the cover article on Divestopedia.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. About De|G PRESS
  6. Acknowledgments
  7. Contents
  8. Preface
  9. Chapter 1: Let’s Have a Conversation
    1. Shadow of the Missing Owner
    2. Staying In or Getting Out
    3. Who Will This Book Help?
  10. Chapter 2: Avoiding Seller’s Remorse
    1. Why Are You Selling Your Business?
      1. Retirement
      2. Stepping Up
      3. Getting Out from Under
      4. Partial Exits
    2. Your Goal Is to Maximize the Value of Your Business
    3. Not Every Business Can Be Sold
    4. Can I Sell My Business If It Has “Warts”?
    5. Why Do I Need to Position My Business to Sell It?
    6. I’m Really Busy—How Much of My Time Will It Take to Prepare My Business?
    7. How Long Will It Take to Sell My Business?
    8. And a Final Consideration
    9. Jim’s Bakery Example: Overview
  11. Chapter 3: The Sales Process
    1. Sales Process Tasks
    2. Breaking Down the Steps
      1. The Decision to Sell
      2. Identify Your Transition Team
      3. Position Your Business
      4. Interview Bankers and Brokers
      5. Listing
      6. Prepare Marketing Materials
      7. Create a List of Potential Buyers
      8. Qualify and Down Select Buyers
      9. Letter of Intent (LOI) and/or Purchase Agreement
      10. Buyer’s Due Diligence
      11. Closing
      12. Transition Support
  12. Chapter 4: Start Thinking about the Value of Your Business
    1. Make Sure Buyers Have the Correct Image of Your Business
    2. Does Your Business Have “Curb Appeal?”
    3. Be Prepared to Demonstrate Your Business in Operation
    4. Talking to Your Employees
    5. Jim’s Bakery Example
  13. Chapter 5: Who Are Your Buyers?
    1. Business Buyers Are Not Impulse Buyers
    2. Qualified Buyers
    3. Looking for Strategic Buyers
    4. Looking for Financial Buyers
    5. Get to Know Your Buyer
    6. Be Open to “Earn-Outs” and “Stock Swaps”
    7. A Word about Ethics
    8. Jim’s Bakery Example
  14. Chapter 6: Marketing Your Business
    1. Where Are Buyers for Your Business Going to Be Found?
    2. How Will You Market Your Business?
      1. Getting Professional Help
      2. Selecting a Sales Agent/Intermediary
      3. Having Your Say
      4. Marketing Materials
      5. Market Relevance
      6. Know Your Competition
      7. Markets Are Dynamic
    3. Your Business Is for Sale. Shhhh, Be Quiet, Shut up!
    4. Down Select
    5. The Single Buyer Slump
    6. Jim’s Bakery Example
  15. Chapter 7: Preparing for a Due Diligence Financial Assessment
    1. If You Want to Sell Your Business Get Your Head out of the Financial Sand
    2. Putting your Financial House in Order
    3. The Dichotomy Dilemma
    4. Recasting Your Financials
    5. Third-Party Audits
    6. Looking Toward the Future
    7. Future Performance Should Be Based on a Solid Foundation
    8. Jim’s Bakery Example
  16. Chapter 8: Preparing for a Due Diligence Legal Assessment
    1. Legal Positioning Casts a Wide Net
    2. Create a Milestone Calendar
    3. Government Regulatory Compliance
    4. Intellectual Property
      1. Patents
      2. Trademarks
      3. Copyrights
      4. Intellectual Property (IP) Assignment
      5. Capturing IP
      6. IP Violations Can Cost You
    5. Jim’s Bakery Example
  17. Chapter 9: Preparing for a Due Diligence Operations Assessment
    1. Start an Internal Risk/Opportunity Management Program for Your Business
    2. What Is the Scope of the Enterprise?
    3. Preparing for a Customer Satisfaction Infrastructure Assessment
    4. Preparing for a Production/Services Infrastructure Assessment
    5. Preparing for a Sales and Marketing Infrastructure Assessment
    6. Preparing for an Organizational Infrastructure Assessment
      1. Prepare an Organization Chart
      2. Don’t Overlook the Informal Organizational Infrastructure
    7. Preparing for a Personnel Infrastructure Assessment
    8. Preparing for a Financial Operations Infrastructure Assessment
    9. Preparing for a Legal Operations Infrastructure Assessment
    10. Preparing for an Information Management Infrastructure Assessment
    11. Preparing for an Institutionalized Processes Infrastructure Assessment
    12. Jim’s Bakery Example
      1. Jim’s Production/Services Infrastructure Preparation Example
      2. Jim’s Sales and Marketing Infrastructure Preparation Example
      3. Jim’s Organizational Infrastructure Preparation Example
      4. Jim’s Bakery Personnel Infrastructure Preparation Example
      5. Jim’s Bakery Financial Operations Infrastructure Preparation Example
      6. Jim’s Bakery Legal Operations Infrastructure Preparation Example
      7. Jim’s Bakery Information Management Infrastructure Preparation Example
      8. Jim’s Bakery Institutionalized Processes Infrastructure Preparation Example
  18. Chapter 10: Due Diligence
    1. Due Diligence Is a Continuation of Negotiations
    2. The Due Diligence Process
    3. Document List
    4. Preparing an Asset List
      1. Tangible Assets
      2. Intangible Assets
    5. Preparing for the Due Diligence On-Site Assessment
    6. It’s a Good Time to Build the Relationship
    7. Post–On-Site Activity
    8. Jim’s Bakery Example
  19. Chapter 11: Describing Your Business Model
    1. Prepare an Elevator Speech
    2. Prepare a Written Description of Your Business Model
    3. Beware—Business Models Change
    4. The Franchise Business Model
    5. Strategic Decisions Should Be Tested by the Business Model
    6. Business Models Affect Valuations
      1. Make an aaS of Yourself
    7. Jim’s Bakery Example
    8. Jim’s Bakery Business Model
  20. Chapter 12: Writing Your “Book”
    1. Your Book Is a Business Plan and a Marketing Proposal
    2. Using a Third Party to Write Your Book
    3. Generating Content for Your Book
    4. Your Book Provides the Pith of your Business
    5. How Long Should Your Book Be?
    6. Book Outline
      1. Overview
      2. Market
      3. Competition
      4. Business Model
      5. Product Descriptions
      6. Sales Performance and Projections
      7. Operational Description
      8. Financial Summary
    7. Protecting Your Work
    8. Create a Short Handout
    9. Jim’s Bakery Example
  21. Chapter 13: Create a Virtual Model of Your Business
    1. Your Financial Reports Should Be Your Greatest Sales Tool
    2. Creating a Spreadsheet Model of Your Business
    3. Use Linked Spreadsheets for Greater Fidelity
    4. Monthly “Actual” Input
    5. Jim’s Bakery Example
  22. Chapter 14: Valuation
    1. Financial Analysis and Certified Appraisers
    2. Value vs. Price
    3. Use Caution Applying Metrics
    4. Automation Can Help
    5. How Can a Professional Appraiser Help You?
    6. Valuation References
    7. Jim’s Bakery Example
  23. Chapter 15: Partners, Vendors, and Other People Who Care
    1. Cleaning up the Ownership of Your Business
    2. Prior Investors
    3. Outstanding Debt
    4. Vendors and Critical Suppliers
    5. Remove Any Blurred Lines
  24. Chapter 16: Who Are the Deal Makers?
    1. Finding Professional Help
    2. Business Brokers
    3. Investment Bankers
    4. Types of Buyers and Investors
      1. Banks
      2. Venture Capital Companies
      3. Angels
    5. Beware of Sharks
  25. Chapter 17: Loose Ends and New Beginnings
    1. Transition Planning
      1. Future Insurance Needs
      2. Buyers Change Hats, and You May Too
      3. Taxes
    2. Asset vs. Equity Sales
    3. Lock-outs
    4. Taking the High Road
    5. Become a Consultant
  26. Appendix A: Example Marketing Handout
  27. Appendix B: Example “Book”
  28. Jim’s Bakery, Inc
    1. Jim’s Bakery, Inc
    2. Overview
    3. Market
    4. Competition
    5. Business Model
    6. Product Descriptions
    7. Sales and Marketing Projections
    8. Operational Description
    9. Financial Summary
  29. Index

Product Information

  • Title: Moving On
  • Author(s): James F. Grebey
  • Release date: July 2018
  • Publisher(s): De Gruyter
  • ISBN: 9781547400263