Preparing Your Business for Sale – About Richard Parker

Richard Parker – best Business Advisors has had the pleasure of dealing with various business owners that want to sell their businesses over the last two decades. Much of his work focuses on supporting these owners in preparing their firms for sale, which is a natural extension of his previous experience assisting people in purchasing businesses. This dual perspective offers him a thorough awareness of what it takes to sell a firm and, more crucially, what a buyer requires to ensure the transaction is completed smoothly.

Understanding Buyer’s Concerns

A common inquiry sellers hear when their business on the market is how a buyer can expand the company. Prospective purchasers frequently assume they can make obvious improvements that the current owner has neglected.

However, experienced business owners who are still passionate about their businesses have most certainly tried many of the ideas that purchasers recommend. These attempts may not have yielded results for a variety of reasons and are no longer part of the corporate plan.

Avoiding the “We Tried That” Trap

When buyers offer prospective improvements, sellers may respond with a contemptuous “we tried it – it didn’t work” statement. This response may deter purchasers and ultimately undermine the transaction if they begin to believe there are restricted growth opportunities. Instead, a more effective strategy would be:

• Explain Previous Initiatives: Rather than disregarding the buyer’s suggestions, explain what was done and why the outcomes did not match expectations. Detail the initiative, the outcomes, and the causes that contributed to its failure. It might have been a timing issue, market conditions, or just bad execution.
• Share Lessons Learned: Give insight into how you might tackle the initiative differently if given another chance. This demonstrates to the buyer that you have attentively looked at their ideas and learned from past experiences. 

The significance of honest communication

Some efforts fail owing to poor execution or a lack of sustained testing across multiple situations. You may build the buyer’s trust by openly addressing these failures and the lessons learnt. They will realize that you have properly researched development potential and are eager to give useful thoughts.

Promoting Buyer Confidence

Buyers must believe that once they understand the firm, they will be able to implement effective marketing plans and growth strategies. Without this confidence, they may be hesitant to invest in a company that they see as stagnating.

About Richard Parker

Richard Parker – the best Business Consultant founded Diomo Corporation, The Business Buyer Resource Centre, and authored the How To Buy A Good Business At A Great Price series. Richard has owned fourteen firms and has worked as an advisor and broker for small business buyers and sellers for more than 30 years. He has written and been published in over 300 pieces about buying businesses for The New York Times, Entrepreneur Magazine, and The Street.com. He also contributes frequently to Forbes Magazine. Richard was also nominated for Inc. Magazine’s ‘Entrepreneur of the Year’ award. 

Here’s what customers have to about Richard Parker’s resources and courses 

“I am writing to let you know how much I got from your program. I bought Superior Windows & Doors and felt it was a diamond in the rough.  We have done better every month than the prior owner since we took over. I highly recommend your material to people that even hint that they would like to be business owners. We would not be here without your guidance. Thank you.” – Roy Cooper – Ashland, OR

“I can’t thank you enough for your course and your counseling. I purchased an automotive repair business and am doing pretty well with it starting into my second month. The course is right on and taught me a wealth of information about buying a business. Thanks again for sharing your information and helping people like me.” – Bruce Dunker – Tyrone, NM

Conclusion

Preparing a firm for sale entails more than simply listing it on the market. It entails open communication, sharing lessons learnt, and building buyer trust. By completing these procedures, sellers can better position their firms for a successful sale, attracting buyers who believe they can expand the company.

To summarize, successful company sales require transparency, intelligent participation, and a willingness to learn from previous mistakes. By adhering to these rules, sellers can negotiate the complexity of the sales process and accomplish their intended results.

Key Takeaways 

• Engage Buyers with Transparency: When buyers propose growth plans, describe previous attempts and why they failed, rather than dismissing them outright.
• Share Lessons learnt: Provide insights into how previous initiatives could have been done differently, demonstrating to buyers that you have seriously examined their suggestions and learnt from previous efforts.
• Encourage Buyer Confidence: By outlining potential opportunities and realistic scenarios, buyers will feel more confidence in their ability to implement successful marketing campaigns and growth strategies.
• Avoid the “We Tried That” attitude: A dismissive attitude might turn off buyers and jeopardize negotiations. Instead, provide extensive explanations to keep the buyer’s interest and trust.
• Highlight implementation Challenges: Recognize that many failed efforts are the consequence of poor implementation and a lack of ongoing testing, not bad concepts.

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