By Andy Anderson
Sometimes it’s all you can do to keep the business afloat. Now on top of it, let me throw you a 100 lb. weight of uncertainty.
I’ve covered what too many business owners discover only after the business has been sold. In this one I cover what group of advisors you need and why.
While entrenched in the day-to-day operations, it is sometimes difficult to lift your head out of the water long enough to see the finish line. To finish and win the race, you need the expertise to pace yourself, stay on course and know where your competitors are in the race. But how do you find the expertise to guide you on your business’s strategic path? Here we talk about the future market and formation of your Success TeamTM .
Are you ready for the Baby Boomer TsunamiTM?
There are approximately 78 million baby boomers who own about 12 million business. Over the next 20 years those business will have to transition ownership or cease to exit. B2B CFO® has estimated that there will be approximately 378,000+ business per year, on average that will be sold by 2030. This compares to an average of under 8,000 per year over the past few years. So the market of businesses won’t be just flooded, it will be a tsunami. We call it the Baby Boomer TsunamiTM. So as unique as your business is right now, in a few years it may be just a commodity. So why not sell now? Because you, and you’re business probably aren’t ready to sell. To get the most value, you need to make your business stand out. Everything must be ready. For example, which gets the higher sales price, the neatly kept, well-maintained building, where the documentation is ready and the owner has everything together ready for sale? Or is it the one that appears run down, unkempt and the owner is surprised by every question and request? Which one best describes your business?
I NEED how many business advisors?
Here are the advisors you need. Not should have, but NEED to have. These are the people that will make the sale a success. This is your Success TeamTM. Some of the members are obvious. But others are not. Some will be used at different times in the process. Others will be used throughout the process. So here’s the list:
- You – Obviously.
- CFO. Next to you, your CFO is the most important part of the team, because you need to keep running the business. Your CFO is your assistant to assist keeping the business on track. But no one else is better equipped to keep your team involved, coordinate everyone’s efforts, communicate to the team and make sure everything is ready at the time of sale than the CFO. You will be busy making sure your business increases in value.
- M&A Company – Merger and acquisitions are their expertise and they are especially skilled in the process and they have a lot of connections.
- Attorney – Depending upon your area of business, this may be an attorney who specializes in your industry or type of business.
- Tax Specialist – Who is going to be the beneficiary of the sale, you or the government?
- CPA/Auditor – Can combine with the tax specialist, but if you start with CPA prepared statements, your company will increase in value.
- IT Specialist – IT is such an important part of any business. Unless you are an IT company, be sure to loop in an expert on your IT infrastructure.
- Wealth Manager – You probably have a stock broker, but this is more than which stocks to pick. This advisor is the one that will help determine how much you need to do everything you want, after the sale or transition.
- Appraiser – Why should you have the appraiser and not the buyer? Who wants to control how much everything is worth, you or the buyer?
- Insurance Advisor – Claims history, policy particulars are all important fata points for the sale of a company.
- Banker This is obvious, but it is always wise to tap into your banker’s vast knowledge and connections.
- Key Employees – don’t surprise your employees. If they get worried they will begin to look and leave. Better to keep them in the know.
The team is assembled now what? How do you mobilize your Success TeamTMto help you prepare and ultimately sell your business? See the next in this series Make Your Dream Team a Success TeamTM – Making the most of Exceptional Talent
My Role in Helping Business Owners
As your B2B CFO® everything I do is for you, the business owner to be more successful and efficient. You are important to society and the growth of our economy. I have unique processes and tools to help eliminate the barriers to your success. Let’s talk about how I can get you swimming in the fast lane. Other blog posts in this series are:
- Congratulations on Selling Your Business! Now Get Back to Work!
- Make Your Dream Team a Success TeamTM Making the Most of Exceptional Talent
- It’s My Party – And I’ll be the Best Host Ever! Or if You’re not the Ringmaster of this Circus then Someone Else will be!
I Bring Financial Knowledge, Provide Financial Training and GenerateFinancial Stability I am fluent in “financialspeak” and can translate your monthly numbers into strategies for future success. I take companies to a higher level of success. LinkedIn: http://www.linkedin.com/in/andyandersoncpa/ Email : AndyAnderson@b2bcfo.com. Phone: 909-732-4917 Other blog series: