Sunbelt Business Sales, Mergers & Acquisitions
- Drive revenues up and, more importantly, maximize Seller’s Discretionary Earnings. Secure new customers and alliances; add new products, services and channels of distribution.
- Diversify as much as possible and reduce customer concentration.
- Maintain a thorough set of financial records, including timely monthly financial statements. Report all cash revenues.
- Build and document an appropriate management organization with managers having authority as well as responsibility.
- Create/upgrade a high quality website – ideally with customer ability to order on line.
- Lower costs. Negotiate better terms with suppliers and have second sources for all critical products and services. Replace under-performing employees.
- Thoroughly understand your facility lease and renegotiate the terms and conditions if possible. Understand the lease assumption provisions and process.
- Develop/update a comprehensive procedures manual.
- Upgrade the HR function with accurate employee personnel files containing resumes, applications, performance reviews, I-9’s, etc. Avoid “independent contractor” arrangements with persons that are really “employees.”
- Develop and document upside potential.
- Resolve any disputes and lawsuits.
- Attend to deferred maintenance issues. Curb appeal is important.
- Create a business sales team with an experienced attorney, knowledgeable CPA and an knowledgeable business broker.
- Learn what the tax effect will be on the sale of your company.
- Work hard as the most important determinate of your business’ value is the trend of its revenues, margins, Seller’s Discretionary Earnings and, most importantly, the current year’s year-to-date financial results compared to the same period of the prior year.
