You know how to run your business because you’ve been doing it successfully for years. Selling it is a whole other story. On average, it can take anywhere from 6 to 9 months to sell a business. Given the impact to trading from the global pandemic, this process will likely be longer in most cases for the foreseeable future.
While you could wait for someone to come knocking on your door with a bag of cash, that’s short-sighted and risky. What you really need is to work with a partner that understands the strategic nature of selling businesses and has proven expertise in gaining maximum multiples. By beginning preparations early, you’ll increases your chances of getting maximum value when you do go to market, even if that’s a few years down the line.
Kempten Schwab, Managing Director STS Capital Partners, believes “It’s never too early to start positioning your business to sell. Selling your business is complicated and it’s not something you can do on your own. Most business owners underestimate the psychological and emotional journey that comes with selling their business. You need a partner, someone who’s been exactly where you are right now and can guide you as you take this huge step.”
So, how can STS support entrepreneurial business owners in selling their businesses? For starters, we understand what you’re going through because we’ve been in your shoes. We understand your fears and concerns and want to help clear the path so you can sell when the time is right. And we do that through our unique ValueMax process.
ValueMax is designed to support businesses in getting ready to sell to strategic buyers. Especially those that might not be ready to sell or know exactly what their value really is. The icing on the cake is that we find international strategic buyers who fall in love with your business and will pay multiples of expected value because they want to leverage your business to make their organization even stronger.
Here are some of the key elements of our ValueMax process, which will give you a better understanding of how it helps you prepare to go to market.
A proven solution
Our ValueMax process is a proven solution that gets you ready to sell. We bring in experts, such as capital investment brokers, private wealth managers, specialized M & A legal advisors, coaches, and your own dedicated STS deal team to leverage a wealth of extensive strategic knowledge. This expertise helps reveal any gaps in your organization, so you can make improvements that increase the value of your business.
Your integrated value
Before you can go to market, you need to know your company’s integrated value — what makes you attractive to strategic buyers. We begin the ValueMax process with a deep dive into your business, so we understand what makes you unique and can position your business for maximum value. We also take the time to learn your required and preferred outcomes, which set the goal posts for what you want out of the sale.
Falling in love
The beauty of our ValueMax process is that it puts your business on the radar of potential strategic international buyers, so they begin falling in love with you before you’ve even gone to market. This gives you the edge when it comes to pricing because they are excited about your business and don’t feel pressured to buy. Instead, they are eager to realize the possibilities that your business offers and often pay many multiples of expected value.
Selling is risky
Unfortunately, many people underestimate how risky it is to sell a business. They can get trapped in a legal nightmare with terms and conditions that aren’t in their best interests because they weren’t represented by someone completely on their side. They don’t know the risks associated with selling to financial buyers, such as private equity firms, who might leak their information to the market — a loss of confidentiality that could damage their reputation and embarrass them in front of the competition. Working with STS Capital Partners can help mitigate these risks and help prevent costly errors during the sales process.
Be ready to sell
It’s never too early to start positioning your business to sell, and you need to be ready before a buyer comes knocking on your door, which will happen. However, this type of buyer isn’t your friend — they’re in it for themselves and want to get your business for the lowest possible price so they can turn around and sell it again for more money.
You only get one chance to sell for maximum value. Don’t miss it.
Contact us today to see how our ValueMax process can help you achieve maximum value for your business.