Common Mistakes CEOs Make When Selling Their Company

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Common Mistakes CEOs Make When Selling Their Company

I’m always happy to pass on great info…and this is great info! I’ve included a few snippets below lifted from the full article.

Selling a company can often be difficult and time consuming. The mergers and acquisitions (M&A) process requires careful planning, competent professionals to assist the target company, and an understanding of the deal dynamics involved in the negotiations. CEOs and companies that have not engaged in many M&A transactions frequently make mistakes that can result in a less favorable price or terms that would have otherwise been obtainable. Sometimes these errors can even kill the deal altogether.

The following is a list of common mistakes made by CEOs of private companies attempting to sell the company:

Mistake #1: Not being prepared for the extensive effort and time the deal will take.

Successful exits through M&A are not easy. They are time consuming, involve significant due diligence by the buyer, and require both a great deal of advance preparation as well as a substantial resource commitment by the seller. Acquisitions can often take six months or longer to complete.

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts rohanwood3@bigpond.com; or call me on (0407) 764-261.

Thanks,

Rohan

Category: UncategorizedBy Rohan Wood December 16, 2018

Author: Rohan Wood

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Noela TscheinigAll About Bakery Equipment (EXITRoom member)

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“I connected with Rohan via LinkedIn. He had an interesting profile and I’m looking at scaling my business to the next level. I’m also exploring how to build an asset that is attractive to sell if I decide I’d like to one day. We connected and he sent me a link to his Sellability Score questionnaire. It took 15-minutes to complete and to be honest, I was initially a bit sceptical and just thought it was some sales gimmicky thing. In fact the reverse was true. I filled it in, got my Sellability Score report (benchmarked) and received an offer to speak to Rohan further about the report. I really thought it was going to be a hard sell but I was mistaken. We spoke out my business, he concentrated and listened to me and we spoke about what makes my business attractive and the business Sellability Score. While we both agreed that I am not at the stage in my business to take our relationship to the next level, Rohan sent me a report and pointed me in the right direction to get things cracking. I really got value out of our time together and my goal is to work on the business so Rohan and I can work together moving forward. Sceptical at first, then realised it was a risk free process that added immense value.”

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