Expert Advice from a Buyer – Why You Should Prepare Your Business for Sale

“As a seller, before you go to market, you need to decide what matters to you. Is it the continuity of your business, your employees, and the legacy, or is it cashing out?” – Scott Hile

Guest Profile

Scott Hile is the VP of Corporate Development at Enviva Inc., the world’s largest producer of sustainable wood pellets as a renewable, low-carbon alternative to fossil carbon. Prior to joining Enviva, Scott founded and managed an M&A management consulting firm and taught as an adjunct professor at Clemson University’s MBA program, with courses in global business transactions and entrepreneurial law. He spent almost a decade at Milliken & Company, a diversified global manufacturer, on both the in-house legal team and as VP of Corporate Development after previously serving as General Counsel and Corporate Secretary at American & Efird. 

Scott holds a JD and Masters in International Business from the University of South Carolina and a BA in Economics from Davidson College. 

• Company:      Enviva
• Location:       Bethesda, Maryland
• Contact Info: LinkedIn 

Topics Covered

• What is the biggest issue sellers have when they are selling their business? [2:43]
• How hard is it to sell a business? [4:43]
• Why is it so important to prepare a business before putting it on the market? [6:43]
• What percentage of sellers are not adequately prepared to sell their business? [16:07]
• What are some of the issues that are potential deal killers? [17:33]
• Is it a good use of resources to get a Q of E analysis done before going to market? [20:08]
• How long does it take to prepare a business for sale? [22:10]
• Do small businesses need to prepare for being sold? [25:33]
• What is the ROI of preparing a business for sale? [28:00]
• Why should the buyer and seller not rush through the transaction process? [31:37]
• Why is it important for the seller to understand what is driving them to sell their business? [37:10]
• Is it necessary for the seller to prepare emotionally for the sales process? [38:45]
• What is information asymmetry between what the seller and the buyer each know? [43:34]
• How does the purchase price relate to risk, and how is this related to preparing for the sale? [48:12]
• Why do business sellers usually spend less time preparing for their most important transaction of selling their business than they spend planning a vacation? [56:34]
• What are the advantages of running and selling a business that has been prepared for sale? [59:01]
• Who should a seller have on their team to help prepare for the sales process? [1:02:41]
• What is the final piece of advice to sellers? [1:05:37]

Learn More

• Increasing the Value of Your Business | The RVD Model
• Business Exit Plan & Strategy Checklist | A Complete Guide
• M&A Basics: Building a Sellable Business
• Reducing Concentrations of Risk Before Selling Your Business

Resources Mentioned

• Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue by Jacob Orosz
• The Art of the Exit: The Complete Guide to Selling Your Business by Jacob Orosz

Listen to Other Episodes

• Maximizing Profits: Key Insights on Preparing a Company for Sale from an Experienced M&A Attorney
• First Time Selling a Business? Here’s What To Expect.
• Lessons Learned on Selling a Business After Dozens of Exits

Acronyms or Terms Used in This Episode

• Q of E: quality of earnings report or analysis
• ROI: return on investment
• Information Asymmetry: when one party in a transaction has more or better information than the other party 

To suggest guests, topics, or questions for future podcast episodes, contact Morgan & Westfield.