Here’s What To Do Before Signing A Letter Of Intent To Sell Your Business

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Here’s What To Do Before Signing A Letter Of Intent To Sell Your Business

I’m always on the hunt for relevant info and I loved this – one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster…

Deciding to sell a business is not something company leaders take lightly. It can take months and even years to adequately prepare, especially if you intend to have everything in order so as to ensure receipt of top dollar and a smooth transaction. But, sometimes even the most organized and prepared companies jump into signing a letter of intent before they are truly ready. It is obviously exciting to get the ball rolling, but it is critical to ensure that certain items have been taken care of before making that commitment. Here is what to do before signing a letter of intent to sell your business:

Get on the Same Page

There is a common notion that because a company begins to embark on a sale that all members of the leadership team have discussed the goals of the transaction in depth. Granted, this may be true to some extent, but there are often areas that were not considered or only received a cursory review. If a deal gets going and it becomes apparent that there is a lack of understanding amongst the team, this may deter the interested buyers. Few companies are interested in having to referee disagreements or constantly make changes because of competing expectations, so getting everyone on the same exact page before moving forward is vital.

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article hereand share your thoughts with me afterwards: call (0407) 764-261 or email me at rohanwood3@bigpond.com.

Thanks,

Rohan

Category: UncategorizedBy Rohan Wood October 21, 2018

Author: Rohan Wood

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“Having the ability to ask questions on the spot and the round table discussion was great. The pace was hectic, and it was a long, great day of strategies.”

Noela TscheinigAll About Bakery Equipment (EXITRoom member)

“I have known Rohan for a number of years both on a professional and personal level. Most obviously, Rohan is a great strategic thinker and communicator. For me he is a trusted authority on all things to do in the fix, scale and exit space. He knows all of the pieces of the puzzle, which strategies to use and when best they can be applied. The outcome speaks for themselves. Having an agricultural background like myself, he speaks openly and honestly and is not afraid of having the tough conversation. He is the guy that I want my corner, batting for me, so I can get on with what I do best.”

Gavin ScurrPinata Group (Australia’s leading berry, mango and pineapple producer)

“I was lucky to be in an EO (Entrepreneurs Organisation) forum when Rohan took over as our moderator. To say that the forum was dysfunctional prior to Rohan’s leadership was an understatement. Within a short time, the forum was back on track with clear goals and the accountability systems to ensure that our time together was effective (no mean feat given that there were more than eight successful business owners within that room, all with their own agendas and goals). Within 12 months, we were recognised as Brisbane’s leading forum, fully outcome focused and thoroughly enjoying the journey. I was soon to realise that Rohan employs the same systems and techniques that he uses when he buys, builds and exits his enterprises. He is a master at this game and if you get the opportunity to work with him – go for it.”

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“After a couple of sessions with Rohan, we’ve learnt more about how our company’s finances worked than we had with any accountant of the past 21 years. Rohan broke down the components into a format that we could clearly communicate to the rest of our team. He now provides the accountability framework to implement our strategies to improve our business moving forward. Already, we have seen positive changes within us and also the business. Looking forward to the best 12 months yet for profitability and growth.”

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