Posted By Mark Haas CMC FIMC,
Monday, February 08, 2010
Updated: Tuesday, February 09, 2010
| Comments (2)
I am consulting with a company that anticipates being sold in a year or two. I am a business strategist in my niche market and the owner has requested that I keep a potential sale in mind whenever I make recommendations. Do you have any advice?
What the owner is probably saying is that you should be thinking about how to ensure that the company will be worth as much as possible at the time it is offered up for sale. Here are some considerations for your planning:
- Avoid any unnecessary high-risk projects.
- Avoid recommendations that involve long term commitments that a buyer might not want (e.g., real estate, contracted services, etc.).
- Consider identifying and evaluating potential replacement executives should the owner want to depart upon sale.
- Help the company prepare the various key constituencies for an impending sale (i.e., customers, vendors, employees, investors, etc.)
- Do anything you can to protect the firm's brand and intellectual property through firming up patents, copyrights, trademarks, etc.).
You want the company to look good at the time of sale. It should be operating soundly and in a cost-effective manner, employing talented and happy people and free of any unnecessary commitments. © 2010 Institute of Management Consultants USA