This topic is an alert and a warning.
IF you are speaking to a broker and they say “this will be easy” and/or “I will do all of the work and take care of everything” DISCONTINUE DISCUSSIONS IMMEDIATELY AND MOVE ON!
If they are telling you that it means that they are not going to work hard either and you are about to get 50% - 60% of what your company is actually worth.
That is not the answer you want to hear.
An offering is very hard work.
You want someone that will look you in the eye and tell you very candidly “an offering is a great deal of work and we will need to work really hard together to accomplish your goals”.
Even the very best advisors will never know your company like you do.
You worked exceptionally hard to get to where you are today and to have created the business value that you have. Why wouldn’t you continue to work that hard throughout the offering to ensure the most lucrative outcome possible. There will be plenty of time for R&R after the successful completion of your offering.
Our firm has a business profile seller submission form with over 100 questions. I can always tell right away whether I have a fully committed client or not when I provide the form. I indicate that we anticipate that they should put 10 to 20 hours into the completion of this form to get the information exchange started.
This form is an opportunity for sellers to thoroughly represent and document the key value components of their business. If you are going to send a representative into the open market to sell your company, wouldn’t you want them to be as fully prepared and equipped as possible?
The best offerings are “No Surprises” offerings where the advisor is fully informed about your company so that they can impress buyers with their knowledge and value conveyance.
An astute advisor equipped with extensive knowledge is definitely in your best interests.
If you commence your sales process with an accommodating frame of mind, the entire process will go much more smoothly and effectively. At the closing you will have a feeling of contentment knowing that you made your very best effort and it was rewarded.