Investment Tips

The rule of 5
Date : 17 December 2012

5 Critical Points to Remember When Selling Your Company

·      Make your decision to sell very carefully and deliberately. If you are not ready to sell your Company, DO NOT PUT IT ON THE MARKET.

·      Position your Company properly before placing it on the market. Your Company should be placed on the market just before it peaks (not before and not after). Correct problems that could jeopardize your sale.

·      Conduct due diligence on your Company before the Acquirer does. Know your problem areas before the Acquirer discovers them.

·      Not creating a market for your Company. A few Acquirers is no Acquirers. Understand who is a potential Acquirer for your Company and develop a comprehensive database of potential Acquirers in order to optimize purchase price.

·      Not enough emphasis on Confidentiality. Do not tell anyone (other than 3rd party advisors) that your Company is for sale.

5 Ways to Position your Company for Sale

·      Understand the current market value of your Company.

·      Prepare a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis on your Company.

·      Prepare a 5-year trend analysis on your Company.

·      Prepare a 5-year forecast for your Company.

·      Prepare a Business Plan that details how you would grow your Company over the next 5 years.

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