1 / 12

How To Prepare Your Business For Sale

How to Prepare Your Business for Sale" is a comprehensive guide by Dr. Mayank Patel, Head of Advisory at IBGrid (a subsidiary of IndiaBizForSale), covering key factors business owners must consider before selling. It highlights reasons for selling, challenges in the process, best practices, valuation methods, and the crucial role of intermediaries. <br><br>Moreover, if you are looking to sell your business, you can directly connect with business investors at IndiaBizForSale: https://www.indiabizforsale.com/business/investment-in-india

haripriya01
Download Presentation

How To Prepare Your Business For Sale

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Exit Dr. Mayank Patel Head of Advisory ibgrid.com

  2. Reasons for Selling Investors are asking for a LIQUIDITY event Diversify personal net worth Disagreements between shareholders Acceptable Unsolicited Offer Personal event Succession challenge Challenges of exponential growth insolvency/bankruptcy Consolidation in industrial sector

  3. Challenges in Selling a Business Knowledge Gap–insufficient understanding of the entire process can have an impact on the selling a business. Lack of preparation –Neglecting to adequately prepare all essential aspects before listing your business for sale could lead to inconsistencies during the sales process. Shortage of resources –Insufficient resources and guidance in preparing your business for sale may hinder a seamless sale process. Emotions-Owners may struggle to detach emotions from selling a business after investing years of personal and financial resources.

  4. What buyer wants? Lesser Capital Expenditure –Buyers tend to be more attracted to businesses that are already established and operational, and require less capital expenditure. Better Valuation –Business buyers want better valuation to maximize investment value and facilitate attracting investors or potential buyers if they decide to sell the business. Reliable information about the business and industry. Growth potential of the business

  5. Business Seller and Buyer Experience Adeshsold his thirty year old ad-agency with Veteran entrepreneur Fenil lauds IBFS’s endeavours IBFS In 2008, with the help of IBFS, I successfully sold my US-based employee time sheet business despite facing challenges such as rigorous legal due diligence. This experience taught me the importance of planning for transition management well in advance to ensure a smooth process. Despite facing challenges such as reduced valuation and negotiating with buyers only interested in licenses, IBFS helped me successfully sell my ad agency business. This experience taught me the importance of timing and knowledge Investor- entrepreneur Investor- entrepreneur V C Karthicjoins Karthic hands with IBFS Due to market saturation competition, I decided to sell my business. I received cash offer from buyer. negotiating scalability, I learned that right time is crucial when selling a business. and To scale a business due to low margins, I want to acquire another business to support low margins; with the help of the team and IBFS. Despite challenges, the deal closed, highlighting the importance of timeand a skilled team. Despite price and difficulties in conveying

  6. Seek Professional help, leverage technology Stay Involved Best Practices Selling Business Keep growing your business, right match may take time Timing is extremely critical Keep patience Prepare business for the exit Qualify buyers before you share information Every business needs marketing

  7. Role of Intermediaries Preparation of collaterals – investment memorandum, pitch deck, blind teaser Valuation input Initial screening of prospective buyers Advice for deal negotiation Deal structuring Taxation advice What are the fees charged by intermediaries?

  8. Valuation Method Discounted cash flow method Market multiples – EV to EBITDA, Price to Earning Asset based valuation

  9. Some Realities 75% of Owners are ready for their Exits, but their Businesses Aren’t. For most companies, 75% of company value is in its intangibles. Selling a business and running a business are both full-time jobs. You would think that they would want to acquire your stellar client base, but in an industry characterized by one-to-one client relationships, loyalties are difficult to switch. So, your client portfolio and historical business figures held little value for the prospective buyers.

  10. How we can help you Offline Events Profitable Exit Franchising Online Platform Investment CuratedContent Advisors Network Distribution Partnership Mergers & Acquisitions Joint Ventures

  11. One stop deal management Deal Discovery Due Diligence Match Making Multiple deal tracking Qualify prospects Transaction Support

  12. Let’s discuss your growth projection 8000 422 133 mayank@ibgrid.com www.ibgrid.com

More Related