Selling your Business should be a Process…not an Event!

Whether you are passing the business down to a family member or planning to offer it to the wider market, the transition is a significant event for all parties involved, including the business itself.

Here are some of the key questions that will be answered and steps that will be taken to facilitate the succession of your business when you engage in the Delfi Business Transition Process.

Phase One – Setting the Stage

The Business Transition Process begins for you, the owner, by examining some of your goals in selling the business.

• What will be your lifestyle after the sale (financial needs, willingness to stay with the company for a period, flexibility to help finance the sale, etc.)?

• Has the new owner been identified (family member, unknown entrepreneur, local competitor, etc.)?

• What is the Ownership Structure that supports the Tax Strategy?

• What will the communication strategy be with your key employees, customers and suppliers?

Phase Two – Preparing the Company

Like a home, a Business will sell faster and more profitably if it is in great condition.

This next phase involves the preparation of the Business so that it can be favourably presented to the market.

• Do you, the owner, have a role in managing the business and, if so, how will it be covered?

• Will the management skills in the business be sufficient to meet the changing market demands over the planning horizon?

• What are the Opportunities and Threats in the market place?

• What things must be done extremely well for this business to achieve its earnings potential?

• When a Gap Analysis is done to compare the Present State with the Desired Pre-sale State, what is the resulting Plan that will get us to where we need to be?

• How will we ensure a proper execution of the plan?

Phase Three – The Sale and Beyond

To complete the sale of your Business, there are a few more considerations:

• Valuing the Business – setting the Selling Price

• Marketing the Business

• Tax and legal considerations

• Ensuring a smooth transition following the change in ownership

Please call Richard Hale for more on Business Transitioning.