Chapter 10: Selling the Business
It’s the chance of a lifetime, in a lifetime of chance, and is high time you joined in the dance. —Dan Fogelberg
Over the course of my years at Dormont, I had heard many stories about business owners who had successfully sold their businesses. I was a member of an organization—the Young Presidents Organization (YPO)—that conducted seminars on how to proceed with this process. And through our acquisitions, we had developed some experience with the process. I knew that if we were thinking about selling Dormont, I would have to become more knowledgeable about the process and that we would need to put together a team of top-notch advisors. There were risks and pitfalls associated all along the way, including the time that it would take away from running the day-to-day activities of the company. As much as I thought I knew before we started, I quickly realized that this was much more challenging, complex, and emotional than I had imagined.
Lessons Learned- Selling the Business
1. Interview multiple firms when selecting an important product or service partner.
This process provides you with a great opportunity to learn more about the business sphere where they operate. You will be provided with a wealth of invaluable information that will make you a more informed consumer. You will also be able to ask more detailed questions and compare and contrast the style, content, and processes of the companies vying for your business.
2. Working with a dedicated sell-side investment-banking firm may significantly increase the ultimate purchase price.
The reason to hire an investment-banking firm is for the knowledge, expertise, and ability to successfully execute the sale process. While this may be your first or second time through the process, they have completed hundreds of deals. They understand how to manage the process and will help keep your emotions in check. It will also allow you to continue to manage your own business, an extremely important factor during the sale the process.
I hope that you will purchase From Local To Global: Smart Managenent Lessons to Grow Your Business to see more Lessons Learned.
Board of Advisors:
"Preparing For Private Company Mergers & Acquisistions" PWC/Cohen Grigsby
Goldman Sachs/New York
Presentation to MBA Interns
- The Business Growth Expo - Pittsburgh Business Times
- Institute for Entrepren.eurial Excellence (IEE)
- Association For Corporate Growth (ACG)
- Fox News
- Bloomberg: Taking Stock
- Business Talk Radio Network
- Inc. Magazine
- Business Finance Magazine