Getting the best price for your firm takes a good deal of planning. An analysis of the sales of both independent planning shops and brokerage practices in the past five years reveals these proven steps for jumpstarting the sales process, says Chip Roame of Tiburon Strategic Advisors:
- Identify appropriate buyers (which means weighing all options).
- Develop objectives, expectations and a strategy.
- Value your firm and dress it up for sale.
- Position your business for sale and conduct a search for buyers.
- Negotiate a transaction and secure necessary financing.
- Prep for the close.
SIDE BAR 2:
Making M&A Work
The best-conceived merger or acquisition can fail because of a strategic breakdown once the sale is inked. "The buyer ends up with a book of business that they don't know what to do with," says Tiburon's Roame. Here's a strategy for making a deal work after the ink is dry: