All entrepreneurs could be faced with the tough decision to sell their startup, whether they want to or not. They’ve poured their heart and soul into it and invested countless hours. Yes, the reward may be worth the trouble, but to get there, you have to pass through the acquisition area, which can be tricky and result into failure. To ensure that you the acquisition will run smoothly, you should take a look at these five things that can make your job a lot easier.
It’s sad that in most instances startups are created only to sell them for a fast buck when they start to get on their feet. If you are interested in selling your startup and you’ve done a bit of research, you know it’s harder than it looks. Large companies will not be likely to take risks on small businesses that could easily fail. Here are some tips which could allow you to get the highest price for what you’ve created.
Buyers always want to see the lucrative figures of your company. They will assess the risks, profits or even growth. If you plan on selling your startup, you should have these things sorted out so that you can capture the attention of the interested party. They do not wish to spend much time looking over proposals and they will never want to look at proposals that cannot offer them an overview.
Before announcing that you plan on selling your business, ensure that the company is transferrable. In almost every instance, potential buyers will want every aspect of the business to continue to run smoothly especially after the transition. You must have systems that can be taught, as well as standard operating procedures. Another aspect you should take into account is to ensure that the business is able to maintain its value after you’ve left. Moreover, a pattern of sustainable and repeatable revenue is mandatory. Don’t catch the attention of the buyer by presenting him with a company that will require more work than it is actually worth.
Do your homework. If you plan on selling your startup, you need to have a lot of information about your business which you can later present to potential buyers. Before you actually sell your company, you should have the idea set in your mind for a year before. So by the time you will sell your company, you will have things figured out.
Ensure that you company is continuously growing. What better way is there to get more money for your startup than showing a continued growth? By presenting a growth plan to your buyers, they will be able to see that by investing in your startup they will be able to bring something to the larger company. Moreover, this will add value to the idea of purchasing.
It’s a common fact that large companies move at slower rates. Therefore, you should be prepared to market to this point of view as well. Sell the products or services that will turn out to be profitable in the long run, offer big picture ideals, and inject a good dose of patience in your body. Large businesses tend to make decisions so much slower compared to the decision making process within a startup.
