Events
2010 Annual Diversity Discussion
What Must Change to Make Diversity Work More Effectively in Companies?
February 18, 2010 - 7:30 AM to 9:30 AM
Sponsored By:
Georgia Power
Turner
Social Networks
The Dangerous Journey
Pitfalls of managing the process yourself, part two
by Mark Jordan
March 16, 2009
Last month's column introduced you to some of the most common pitfalls business owners encounter
when they attempt to quarterback the process of selling or buying a company. We introduced the
acronym
DEAL PROBLEM to make it easy to remember the dangers of going on the journey
alone. In
this (LINK
http://www.btobmagazine.com/Articles/2009/February/Jordan_Solutions.html
article, we identified the first four pitfalls:
D - Deficient Non-Disclosure Agreement
E - Expectations are Unrealistic
A - Agenda is Hidden
L - Lack of Delegation
This month, we unpack the balance of the pitfalls:
PROBLEM.
P - Prospect Focus is Too Narrow
Consider your target audience when you create your marketing plan to sell your business. Your
biggest question is, "Who is your target audience?" Maintaining too narrow of a focus will greatly
diminish the possibilities available. Most business owners only think of their closest competitors
as prospects. Expand your focus to include complementary industries.
R - Refusing To Be Flexible
The deal making process is fluid and requires flexibility. If you are considering selling
your business, determine how flexible you want to be throughout the process. Don't mistake
flexibility as a sign of weakness. It sets the stage for solid rapport throughout the process and
creates an environment ripe for success. Flexibility does not mean you give in on key points, but
it may mean you concede secondary points.
O - One Buyer at a Time
Common sense tells us we are better to have multiple buyers at the table, but business owners
all too often fall victim to the trap of dealing with one buyer at a time.
Sales 101 teaches us the more we put into the top of the funnel the more likely we are to
receive positive results. Don't just deal with the buyer who happens to call you on the phone and
express interest. There is most likely a large pool of prospects for your deal. Broaden your reach
beyond the apparent low hanging fruit.
B - Broadcasting Your Intentions
Selling your business creates an aura of excitement. Keep your plans confidential. You know
what happens when you tell one person in confidence.
L - Lack of Preparation
Organization brings about higher productivity. The same holds true throughout the deal life
cycle. Closing a deal is a complicated process. You can't afford to shortchange your preparation
time.
E - Engaging the Wrong Adviser
Selling your business may be a once in a lifetime event. There are three main segments of
intermediaries -main street, middle market and large transaction - assist owners in buying and
selling companies. Make sure you select the right one. In addition, state and federal laws govern
what type of licensing an intermediary is required to have. Using an adviser with deficient
licensing can have significant consequences.
M - Must Sell
If you wait until you must sell, your deal outcome will most likely be less than favorable.
People sell their businesses for a variety of reasons. Some simply want to retire, pursue another
interest, or are just tired of pushing the ball up the hill. Begin the process well in advance of
your desired exit date for a favorable outcome.
There are two types of people in this world - reactive and proactive. Reactive people wait
for situations to present themselves and then they decide how to respond. Proactive people create
their situations. They decide their goals beforehand and set things in motion to materialize their
goals. Proactive people do not wait for events to come to them. Instead, they anticipate such
events and have an action plan.
A proactive stance is critical to the successful sale of your business. To manage the
situation appropriately, you must maintain control rather than allowing the buyer to direct the
process. You cannot wait until a potential buyer calls you on the phone and react to it. Be
intentional about the process and be prepared.
Mark Jordan is managing principal of VERCOR, an investment bank that creates liquidity for
small and middle market business owners. He is the author of four books, including
Enhancing Your Business Value...The Climb to the Top and
Selling Your Business the Easy Way.
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