How to sell your company and legacy successfully

H&H Advisors is working with international investors looking for M&A. We look for companies having revenues between 30–250 M€. Clear growth and/or improvement potential. Preferably a majority share and an active role in the companies. Headquartered in Central Europe or in the Nordic countries. In this article, I give some tips on how to keep your company saleable at all times.

10 tips to boost the value and saleability of your company in the eyes of a potential investor.

1.) Start preparing immediately for the potential sale

a. Make the company structure simple and clear what is for sale

b. What are you selling actually?

The whole company? Part of it? Business?

c. Keep your company and business units sellable at all times

2.) Evaluate and understand the value of your business

3.) Clean your balance sheet from unnecessary things not related to the business

4.) Make a plan for improving the business for the coming years

a. Growth

b. Profitability

5.) Prepare an updated sales pitch

a. Company mission statement

b. Vision and Strategy

c. Description of the industry

d. What is the problem you solve?

e. Product and service description

f. Business model

g. Market size (Bottom-up, Top-Down)

h. Sales and Marketing plan

i. Expansion opportunities and plans

j. Operations, R & D and Technology, IP

k. Competition

l. Organization

i. Board and Advisors

ii. Management

m. Financials

i. P/L, balance sheet

ii. Cash flow history and forecast

n. Risk analysis

6.) Know your numbers

a. Proof of concept

b. Sales and profit history

c. Customer acquisition costs

d. Average order size

e. Customer life cycle profitability

7.) Sell your team

8.) Concentrate on the buyer- make his life easy

9.)Reserve time and resources

10.) Use professionals and don’t neglect daily business.

a.Business Advisors and sales professionals for marketing and sales

b. Financing professionals for innovative solutions

c. Lawyers, banks for documentation