This preparation is essential when selling your business.
Creating a solid plan of approach for selling your company is not an everyday task for many entrepreneurs. Where do you start? And how do you make time for it while the business keeps running? M&A specialist David Linders will guide you through this process.
It is quite common for entrepreneurs, once the sale is completed, to look back and realize they would have handled the process very differently. "If only I had taken more time beforehand to prepare properly, the due diligence process would have been less confronting." Another important aspect is optimizing business processes, especially in the years leading up to a potential sale. This can significantly impact the sale price.
'Achteraf had ik meer vanuit de koper moeten denken. Zijn de waardebepalende van het bedrijf elementen écht op orde?"
Don’t Let Buyers Pressure You
David Linders, Senior Director at Rembrandt M\&A, emphasizes the importance of thorough preparation—even if it takes more time than expected. This can save you a lot of stress and worry during the sales process.
“Many entrepreneurs say afterward that they didn’t allow themselves enough time to prepare properly. As a result, a lot comes at you all at once during the sale process, while day-to-day business keeps running. The general advice is: don’t let the buyer pressure you. Think carefully about the direction you want to take with your company and act consciously in line with that.”
Support with Preparation
Rembrandt M\&A provides assistance to entrepreneurs preparing for the potential sale of their business. Together, we map out the financial data so that you are well-prepared for the due diligence process. There are many aspects you can start working on several years before the actual sales process begins. Our handy “Ready to Sell” Checklist offers a first guideline, which we are of course happy to review with you personally.
An important part is getting your administrative matters in order, including legal and tax structures, commercial agreements, and any documentation related to GDPR. Operational preparation also plays a key role. For example, determining which members of your management team can take over some of your responsibilities. This shows the buyer that your business is not solely dependent on you.
Internal and External Factors
David mentions internal factors such as reaching a certain age or the lack of a successor as reasons for a possible sale. He also observes that entrepreneurs often take action when their passion for the business begins to fade, for example due to increasing personnel challenges, administrative burdens, and complex laws and regulations that come with growth.
“External factors that can encourage the sale of your business include markets where investment firms are active with a buy-and-build strategy. These parties aim to grow and are often willing to pay higher prices. It can happen that one day someone comes knocking with interest in an acquisition. In such cases, the right timing is crucial.”
Get Started Yourself
“Entrepreneurs are often proactive people,” David concludes. “Show this quality especially when it comes to selling your business. This not only means preparing your company for sale but also keeping an eye on the market and, if needed, taking the initiative to have a first conversation with potential buyers. How valuable would it be to find a buyer who truly recognizes and respects the value of your business?”
Are you ready for the next step and want to proactively explore whether selling your business is right for you? Then feel free to contact David directly for further guidance.