Kauffman eVenturing, a Web site for growth-oriented entrepreneurs, has posted a new collection of articles on successful selling strategies.
This new collection offers tips on deciding who to sell your company to, whether to seek a buyer yourself or use an investment banker, how to get the best price once you do decide to sell and how to tell your employees.
Articles include the following:
* “Communicating an Acquisition to Employees� by Bill Carpenter, former CEO of TEAL Electronics and chair of the San Diego Social Venture Partners, recounts his experience in selling TEAL and how his decision to keep his employees informed about the impending sale allayed their concerns and kept everyone on board.
* “Preparing Your Company for Exit� by Robert M. Okabe, managing director, RPX Group LLC, notes that preparing for the sale of a business is similar to raising capital, combined with aspects of a strategic review. All require thorough preparation, including a business plan, cash flow projections, demonstrating Sarbanes-Oxley compliance practices, financial statements, compiling tax records and more.
* “Strategic or Financial Buyer Options� by Robert Muir, partner, Prometheus Equity Partners Pty Ltd, recounts his experience selling Ceramic Research Inc. to a strategic buyer in order to gain access to markets critical to the company’s future growth. He also evaluates the plusses and minuses of seeking private equity financing.
* "Using Investment Bankers to Sell Your Company� by James Geshwiler, chairman of the Angel Capital Association and managing director of CommonAngels, provides helpful guidelines for entrepreneurs who decide to retain an investment banker to handle the sale of their business, covering such issues as how to determine whether they’ll be better served by selecting a large or small IB firm, a generalist or industry specialist and what level of attention their deal is likely to get.
* “Responding to an Unsolicited Buyer� by André P. Galliath, president of Ceramic Products Group, Dover Corporation, provides insight on how entrepreneurs should vet unsolicited offers to sell their businesses, discarding those that are simply looking for bargains or quick resale opportunities. He notes that the best queries are those from a company with acquisition criteria that will benefit both parties.
* “Is it Time to Sell?� by Thomas L. Churchwell, managing partner of ARCH Development Partners L.L.C., outlines the common situations that trigger the decision to sell a business and counsels entrepreneurs to prepare themselves ahead of time by asking probing questions, such as: “Why am I really doing this? and "How do I really measure success?�
* Tools and Templates: Included are an array of practical tools to help entrepreneurs who decide to sell their companies, such as explanations of common tax issues, potential litigation traps, and key terms and conditions every entrepreneur should understand before a sale.