We are exploring the recently released book, “The Exit Strategy Handbook” by Jerry Mills, the founder and managing partner of B2B CFO®.
Last week this blog reviewed steps an owner must take to avoid being distracted during the sale process. Another one of the areas the owner must focus upon is continuing to increase sales and to diversify sales, including securing new customers, expanding product lines, adding additional complementary product offerings, and growing sales penetration with existing customers.
The competition will not be distracted by your internal issues whether those relate to selling your business or not. In fact, when competitors gain knowledge of your sale, they will take advantage of the situation to attempt to convince your customers that the customer will see service and product disruptions. The last thing the business owner can afford to do is play into that competitive strategy. The business owner and sales team must maintain their focus on business growth and improving product and service offerings.
By spending time on the business rather than the sale, the business owner will improve the attractiveness of the company and improve the EBITDA of the company. Higher EBITDA, as we saw a few weeks ago, will result in a higher selling price for the firm and often at multiples of 4-5 times. Failure to continue to build sales and sales diversification may have the opposite effect multiplied by the same valuation multiples.
This is such a critical topic that I will explore it in greater depth over the next few blogs.
B2B CFO® has over 200 experienced chief financial officers have deep knowledge of transactions and business improvement that can be tapped to help you sell your business. You can explore the backgrounds of our team at www.B2BCFO.com/index.php?page=cfo-directory