7 Essential Points to Consider Before Selling Your Company
An acquisition offer might be alluring to a lot of business owners. But in all the excitement and possible reward, it's crucial to remember vital details that could make all the difference in the outcome of the transaction.
We strongly agree with the Young Entrepreneur Council members' discussion on the factors they believe are most crucial to consider before selling your business.
1. Potential miscreants
A common occurrence is rivals expressing interest in buying a company only to learn as much as they can about it without planning to close the deal. Before disclosing confidential information, ensure you have a solid mutual non-disclosure agreement in place. You should also follow your instincts and refrain from disclosing too much of your company's trade secrets.
If you are looking for a business expert to exchange information about your business, then Brookfield assures you of the privacy of your company's information and will only share it with your consent.
2. The minimum expectation
It's important to consider the transaction value you're willing to accept for your business to be sold. You may decide fast if it's worth it to go through the costly and time-consuming process of completing an M&A transaction if you have a clear understanding of your asking price.
However, the business is worth as much as somebody is willing to pay for it.
One needs to be well-informed about the market and aware of current developments in the sector. Our business specialists at Brookfield offer their knowledge in assessing your company's value so that you can anticipate the sale process.
3. Your participation following the sale
Consider how involved you would like to remain following the deal. It matters because the future course of the company can be influenced by your degree of involvement. It's up to you to determine whether you want to stay on as the company's leader, take on a transitional role, or leave entirely. It all comes down to striking the correct balance between holding on and letting go.
Get in touch with our business specialists who will assist you in better navigating by helping you assess your choice.
4. The worth of your business over time
When a rival company makes an offer to purchase yours, it is crucial to evaluate the company's future trajectory over the following five to ten years. This will make your decision on whether or not to sell your company easier.
The offer made to you might be significant, but only after you've correctly calculated your company's genuine value will you truly know how much it's worth.
5. Preserving clientele
One thing you should consider when a buyer makes you an offer to buy your company is how you'll continue to build and maintain client relationships.
A new company taking over your business could cause your existing customers to feel disengaged, as you have put time, money, and effort into building a solid customer base. Be considerate when discussing those points with the new owner to ensure the existing customers and suppliers will be well taken care of regardless of the ownership transition.
6. The fine print of the deal
Remember to read the fine print when conducting your due diligence. Most transactions have spicily worded conditions that will affect you and your team, such as keeping you on for years after you leave or halving your current team.
Talk honestly about commitments and plans for both parties. If the new path conflicts with your vision, don't be alarmed.
It is important to let a business expert and a lawyer evaluate the deal before engaging further. Let Brookfield's experts assist you in evaluating and closing the deal seamlessly.
7. The conditions of the agreement
Verify that the conditions of this agreement are acceptable to you and that you are prepared to fulfil your buyer's demands. Sometimes, deciding to sell the company is just the beginning of a drawn-out process that may require reaching specific milestones and expanding the company to a certain return on investment before you can sell.
If you are looking for support in selling your aviation company, consider working with the Brookfield Aviation Finance team to help you navigate the sale process more smoothly. Our team provides customised expertise and strategic direction to optimise value and guarantee a smooth transition.
You may confidently accomplish your goals and handle the intricacies of aviation company sales by placing your trust in Brookfield Aviation Finance.
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Book a call with our profound business expert, Ms. Anna Tran, to evaluate your business and help you make the best decision.
