If You Decide To Seek Investors

Written by Mike Shapiro | | March 1, 2016

Suppose you actually decide you want to solicit investors for your company, or even find someone to buy it outright. There are many books and articles on all the things you should do. Here’s a quick check-list of the important high-level steps:

Pre-Offering

  1. Look closely at customer service. Implement procedures for critical operations to eliminate any outstanding unresolved service issues and complaints.
  2. Develop plan for transferring work responsibilities from owner or anyone not staying with the company past the date of infusion of new funding or sale.
  3. Review and revise operations manuals and employee handbooks.
  4. Arrive at realistic trial sale price based on current state.
  5. Identify criteria that can be improved.
  6. Develop and implement initiatives to increase sale price.

 Going into the market

  1. Determine asking price, structure and components of ideal sale, including consideration of owner’s income and estate needs.
  2. Selection of business broker and/or VC firm. Determine what kinds of services needed beyond pure funding.
  3. Offering for sale/soliciting investors.

Completing the transaction

  1. Analysis of offers received and selection of best offer.
  2. Negotiation of terms of Agreement of Sale.
  3. Completion of sale transaction and transition of operations to new owners.

Next: What’s The Right Selling Price For Your Business