1: Deciding to Sell

In this episode of M&A University, Jim Evanger shares invaluable insights into preparing to sell a business. He explores the critical decision-making process for entrepreneurs considering an exit, discussing key motivations like burnout, capital needs, and lifestyle changes. Jim emphasizes the importance of strategic planning, understanding your business’s value drivers, and preparing for potential buyers. Drawing from his personal experience selling his franchise business, he provides practical advice on exit planning, financial preparation, and navigating the complex emotional and strategic landscape of selling a company. The episode offers a comprehensive guide for business owners looking to maximize their company’s value and successfully transition to their next chapter.

Additional Information

• Topics Covered
  • Deciding to Sell: Emotional and Practical Factors [0:02]
  • Objectives in Selling a Business [22:44]
  • Strategic vs. Financial Buyers [23:53]
  • Case Studies: Successful and Unsuccessful Transactions [31:57]
  • Exit Planning Process [45:31]
  • Value Drivers in Exit Planning [55:15]
  • Preparing Financial Statements [1:05:59]
  • Customer Base and Market Analysis [1:06:17]
  • Personal Relationships and Customer Loyalty [1:13:26]
  • Due Diligence and Quality of Earnings [1:15:27]
  • Financial Due Diligence for Financial Buyers [1:15:47]
  • Operational Due Diligence for Strategic Buyers [1:25:35]
  • Communicating the Sale to Employees [1:28:17]
• Helpful Resources
  • Selling a Business: A High-Level Overview
  • Crossroads: Deciding to Sell Your Business vs. Doubling Down
  • M&A Talk Episode: First Time Selling a Business? Here’s What To Expect
  • M&A Talk Episode: Planning and Selling Business with Morgan & Westfield