8
min

The bride is too beautiful... or how to make your business really beautiful to sell it well

Ecris par
Publié le
2/4/2020

Selling your business is difficult, even very difficult.

Many managers limit this question to the financial valuation of their company or to the search for the highest bidder.

Many entrepreneurs are reluctant to hand over and put off preparing for the takeover of their company.

What's more, businesses that are likely to be acquired often have strong growth potential and their management leaves little time for the manager to calmly think about an optimal sale.

However, preparing your business for sale is a real project that can take two years to implement. This project consists of carrying out two projects:

1/ Dress the bride

The main levers for increasing the value of the business to be sold are as follows:

  1. Development of turnover
  2. Reduced operational costs
  3. Maximizing cash flow
  4. Risk reduction
  5. Clarification of management and organization

Risk reduction is often underestimated in a sale project. The risks that lead to undervaluation are:

  1. The lack of independence of the company in relation to its manager
  2. Key employees who are not loyal
  3. An oral culture, without sustainability of knowledge
  4. Dependency on customers and suppliers
  5. Financial dependence (cash flow, insufficient equity)

For example, too much dependence on the company's manager can have an impact on the fall in value by around 25%. The establishment of an effective delegation process and the retention of key employees will reassure buyers.

2/ Control the sales process

Knowledge of a sales (or purchase) process is an integral part of being a manager. In this context, many managers immediately focus on the financial valuation of their company.

However, they should not launch the sales process without having thought about their goals, for themselves and for the company, the target of preferred buyers, and the means to be used.

Thus, before coming to an evaluation, four projects must be carried out:

Knowing and managing the sales process optimizes market value. This market value can be much greater than the intrinsic value of the company.

Table of contents

3
min
Business strategy

The bride is too beautiful... or how to make your business really beautiful to sell it well

Publié le
15/4/2025

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