When a business owner is thinking of selling, certain critical steps are required to get it ready for a potential buyer for the sale to be profitable and successful. Dr. Connor Robertson offers practical and proven guidance to help clients through the complicated and often intimidating process of selling a business, get it in shape before going to market, and obtain top value for the company.
Getting the Business Ready for Sale
It’s essential to understand that selling a business starts well before an owner is ready to do so, according to Dr. Robertson. It’s important to know what the company is worth and how to enhance its value before putting it up for sale. Dr. Robertson recommends undergoing a professional valuation to get an idea of what your business is worth and its market position, financial situation, strengths, and weaknesses. From there, work on the areas that need improvement.
Maximize Business Value
Maximizing the business value involves the following approach:
- Compiling comprehensive, organized financial records: Assess your business’s financial health and ensure the company’s documentation is well-organized and accurate. Financial transparency is critical when looking for a buyer.
When working with clients, Dr. Connor performs an internal review of the business’s books, financial statements, and paperwork to ensure they highlight the company’s profitability and strong cash flow. He also ensures all contracts and agreements are current and in compliance with applicable laws, including employment contracts, customer and vendor agreements, and any relevant legal permits or licenses in the industry.
- Optimizing operational efficiency: Buyers look for businesses that operate well and have room for expansion. Dr. Connor will thoroughly evaluate the operation, identify where improvements should be made, and help reduce wasteful costs so that the company is operating at optimal efficiency.
- Scalability: Buyers want businesses with growth potential. Dr. Robertson works with sellers to identify expansion opportunities, whether through new product lines, additional locations, or untapped markets.
- Customer loyalty: Businesses with a strong and loyal customer base are more valuable. Dr. Robertson helps sellers increase customer retention and build recurring revenue streams.
Price the Business Right
Dr. Robertson assists businesses in conducting a market analysis to determine a competitive yet attractive price for the company. Selling too high will turn off potential buyers while selling the business at a price that is too low can leave money on the table. Determining the right price entails reviewing recent sales of similar businesses in the industry and location to gauge market value; calculating the business’s value based on earnings multiples commonly used in the industry; determining the value of tangible and intangible assets such as equipment, real estate, and intellectual property; and assessing future growth and profitability potential, which may justify a higher price.
Craft a Compelling Story
Attracting potential buyers requires telling a compelling story that resonates with them. It’s not just about the numbers but tapping into a buyer’s emotion and interest to get to know more, to understand that the business is worth investigating. Dr. Connor Robertson helps create a narrative about the business that highlights its history – where it’s been and how it got here, its mission, values, culture, successes, impact, and future goals and potential.
Ensure a Smooth Transition
Dr. Robertson also works with businesses to support a smooth transfer for both the seller and the new owner. He outlines strategies for employee retention during and after the sale, advises on training and transferring knowledge and expertise to the new owners or management team, addresses any employee concerns, and ensures a seamless transition of customer and supplier relationships to minimize operational disruptions. This emphasis on post-sale performance guarantees that enterprises continue to thrive under new ownership.
His Track Record
Dr. Robertson’s expertise in helping owners sell their businesses first began with the 2024 acquisition of Hedge Management by BIG Management. Under his leadership, he helped position Hedge Management, a short-term rental property management company, for acquisition.
Dr. Robertson streamlined the company’s operations, implemented technology-driven solutions, and built a loyal client base.
Another example of Dr. Robertson’s success was with a family-owned printing company that faced declining revenue due to outdated technology and lackluster marketing strategies. He recommended the owners invest in digital printing technology and launch an online ordering platform. Within a year, the business’s revenue doubled, and a larger competitor bought it for a premium price.
A tech startup preparing for acquisition sought Dr. Robertson’s expertise. By updating the company’s brand, improving financial reporting, and showcasing its innovative products, he helped secure a deal that exceeded the owners’ expectations by 40%.
Dr. Robertson works with business owners to achieve the desired financial outcomes and lasting legacies they seek when selling their companies. This involves maintaining staff well-being, safeguarding the company’s primary objective, and laying the groundwork for future success.
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