7 Important tips for buying or selling a businessMakarand Vaidya
The process of buying or selling a business is very close to any other selling process. However some of the factors that impact success are not so obvious. I was fortunate to be on both sides of the deals in different transactions. Here are some of my observations that can help –
• Do not build your organization with a specific buyer in mind. There is no guarantee that the deal will go through. In fact, the chances of deal failure are higher in such cases.
• Build an IP within the product or the service, in such a way that it can be demonstrated to a potential buyer. Many times the value in the eyes of the entrepreneur is not cleanly visible to the outside world.
• Make yourself redundant. It takes time to be there. If your business highly depends on you or a few specific people, it is difficult for the buyer to realize the value. This is hard.
• Be patient. It takes a lot of elapsed time for everything to work out. Also opportunities knock more often. Do not give up with a lost opportunity.
• Do not lose focus on the business during the process. This becomes very critical or you may end up losing the value.
• Remain compliant to government rules and regulations. It’s a no-brainer, still worth mentioning, because going back and correcting mistakes related to compliance can be expensive.
• Take help from experts. Some of the nuances and finer details can make a significant difference. The help we received from
LegaLogic Consulting helped us in may ways.
Have you thought about your business from this angle?