Slide 1:Selling a Business 50 Things to Consider When Planning to Sell Your Business By Kipp Krukowski


50 Things to Consider :50 Things to Consider Understand different types of buyers Understand how to calculate Seller’s Discretionary Earnings Understand different ways to value a business Understand that different buyers pay different prices Understand deal structure – asset vs. stock Understand seller financing pros & cons and how to structure Value stream map processes and materials Clean facility Improve appearance on the internet Solidify workforce


50 Things to Consider :50 Things to Consider Cross train employees Create employee manuals Understand the sales process and timeline Emotionally detach from the business Remove non-operating assets Formalize contracts with customers Formalize contracts with suppliers Clean up legal issues Understand the “true” value of the assets Repair / maintain equipment


50 Things to Consider :50 Things to Consider Sell excess inventory / write-off obsolete inventory Collect aging accounts receivable and make them current Remove unnecessary family expenses Understand the “net” after the sale proceeds Create a control plan for quality control Hire competent advisors and understand their roles Screen potential buyers Differentiate your business by creating a niche Make sure partners / decision makers are on-board with the decisions Plan for training and transition


50 Things to Consider :50 Things to Consider Understand the letter of intent is a starting point for negotiations Understand that not all lenders are the same Keep running the business as normal Be flexible on business meetings and showings Learn how to confidentially market the business Diversify your customer base and products Create a list of growth opportunities that have or have not been pursued List strengths and weaknesses Consider outsourcing some services Create database of past and current customers


50 Things to Consider :50 Things to Consider Review / upgrade software and technology Report all sales Consider a product display or showroom Systematize processes Prepare for the unexpected in selling the business Consider lease vs. buy for equipment Total cost analysis of products / services Consider selling the business separate from the real estate Calculate inventory carrying cost Think like the buyer


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