Growth

Rich and Co.

Sell Parts of Your Business Before You Sell Your Business

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How to maximize the price you get for your business.  Take Aways:

  • Separate and non-core parts of your business may be valuable and useful to sell separately
  • This may make you core business more valuable
  • It may help your immediate, and future, profitability, organizational matters and growth

The Problem –
As we help buyers and sellers of investment and retirement firms the following scenario is typical — especially for retirement firms:

  • Your business is a mixture of different product and service offerings
  • The 80%/20% rule applies with 20% of the business offerings producing 80% of the profits, growth and manageable aspects of the business
  • You cannot figure out how to handle the 80% of the business that delivers 20% of growth and profits and yet 120% of the headaches

Bottomline – The marginal parts of your business are a current drag on your personl and your businesses well-being and will drag down the price you will receive for your business.

Buyers want to acquire the parts of your business that fit theirs.  But for them to also be forced to acquire the parts of your business that are not a fit form them:

  • Lowers the value of the acquisition to you – and them
  • Threatens the on-going viability of the business and thus – your payout

The Solution = Optimize your Business BEFORE You are Ready to Sell and Retire

One of the best and easiest way to do this is by separately selling the secondary parts of your business.

Contact us to discuss.

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Written by Rich and Co.

May 19, 2011 at 5:31 pm

Posted in Uncategorized

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