| Often the hold up to selling a company is that the | | | | The time to estimate this kind of endeavor is |
| owner isn't confident in the management team | | | | difficult. It must rise to the top of your priority list |
| beneath him or her. Succession planning and | | | | in order to sell the business for a higher price. As |
| leadership development frequently take a back | | | | Champy said, "work is infinite and time is finite... |
| seat to more pressing matters of the day, and | | | | have a laser like focus on doing first things first." |
| this can have tremendous negative impact on the | | | | Developing your leadership team has to be a 'first |
| business valuation and sale. | | | | thing' especially when you are considering selling a |
| Ralph Nader said he believes "that the function of | | | | business. Work on the business and selling it, not |
| leadership is to produce more leaders, not more | | | | just in the business making it operate. |
| followers." This certainly is true when operating a | | | | It also depends on how ready your people are |
| business, and it's critical when selling a business. A | | | | now to pick up additional education and |
| strong management team is among the most | | | | responsibilities, how available relevant education is, |
| important criteria for selling a business and for | | | | and, if you choose to go outside the company, |
| making it successful after the sale. Potential | | | | how accessible top talent is. This could take as |
| buyers want to know if the business can run | | | | long as two to three years. |
| without you. You need to do the hard strategic | | | | Top business owners always develop and |
| work in the face of relentless day to day | | | | delegate authority to appropriate people. While it |
| activities to make sure that it can. | | | | should have been an ongoing process throughout |
| Smaller businesses frequently fall into the trap of | | | | the life of the business, initiating the sale process |
| being too owner dependent. If that team is not in | | | | is an opportunity to see how your company can |
| place, creating it should be your top priority upon | | | | lessen reliance on you. As Theodore Roosevelt |
| deciding to sell. Assess your team honestly, using | | | | advised, the boss should have "sense enough to |
| an outside expert for 'fresh eyes' if needed, and | | | | pick good men to do what he wants done, and |
| determine how to bring their skills up to the level | | | | the self restraint to keep from meddling with |
| needed. This could include internal and external | | | | them while they do it." |
| mentoring, on-the-job training or professional | | | | Many times we have worked with business |
| development classes. | | | | owners who won't let go of control and hold on |
| If you decide to hire senior executives from the | | | | too long to the business. Is this you? Who would |
| outside while planning your sale, you likely will | | | | run the business right now if you left? How can |
| contract with them for a payoff when the sale | | | | you help them gain the skills to be as successful - |
| concludes. If you have a longer sale horizon, offer | | | | or more so - than you? |
| tax-advantaged incentives through equity or | | | | I invite you to use these ideas as you start the |
| synthetic equity arrangements. Always consult a | | | | journey to sell a business. |
| tax advisor about such matters. | | | | |