Preparing for exit really gets your business aligned; you get your accounting cleaned up and marketing methods to get your business out there.
The end of the year is typically the time when people are trying to sell their businesses. “Preparing for exit really gets your business aligned; you get your accounting cleaned up and marketing methods to get your business out there,” said CPA Gary Cooper, managing member of Exit Advisors, and a partner of Cooper CPA Group. “It makes the company run more effectively and become more profitable.”
To educate business owners on selling a business, Cooper, who has built and sold his own companies, lists the following three tips:
No. 1: Be prepared. This includes hiring a reputable investment banker that has a collaborated team of professionals. “You also must get a business valuation, as well as do pre-due diligence that leads to creating an up-to-date dropbox, and have total transparency,” stressed Cooper. “Don’t forget about accounting cleanup, legal audit, sustainable cash flow, and stable human capital that provide all the attributes for a strategic transaction.”
No. 2: Market the business. The banker will market the business for a strategic transaction. “Be transparent, and don’t be greedy,” added Cooper. “Having an informal auction will only generate more buyers and promote a higher offering price.”
No. 3: Transact the deal. “This means Letter of Intent, which leads to a sound purchase agreement,” concluded Cooper. “You must be results-driven to complete a successful transaction. If you don’t have a team of qualified professionals assisting you, it can lead your deal to being stalled or it can wind up not even closing.”
About Exit Advisors
Exit Advisors is a mid-market investment banking firm focused on merger and acquisitions for transactions ranging from $10-50 million. Its collaborated team of professionals assist clients through the entire succession plan process, helping sellers with pre-due diligence and selling their businesses. Gary Cooper is the managing partner who also utilizes Cooper CPA Group to handle the due diligence process. For more information, please call (832) 680-0014, or visit http://www.exitadvisors.com.
About the NALA™
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