Tips for if you plan to sell your business
I sold my business in 2018. It even made headlines on nu.nl! I’ll admit, honestly, that was mainly because of my company’s high ‘cleavage content’ and the resulting clicks it generated for the media company. Nevertheless, Bye Bra was my first significant exit.
Selling a business is complex. I was unaware. If I had the knowledge in 2018 that I possess now, I would have certainly earned 15% more. That 15% I can offer you now.
Many entrepreneurs realize they need a business broker like I did back then. I am not a business broker. My role involves providing advice on aspects often overlooked by sellers and sometimes deliberately by brokers and lawyers. I am the watchdog of the business broker and simultaneously your sparring partner. My goal is to protect you from the pitfalls before, during, and even after the sales process – even if your business broker has moved on.
An Example:
Often, you do not receive the total sale amount immediately after the sale, but ‘earn-outs’ are employed, where the deal value depends on future performance. If your company fails to meet the set goals in the coming years, you miss out on a portion of the sale amount. I regularly see entrepreneurs fail to meet the earn-out goals, often through no fault.
Your broker requests a commission to guide the sale, usually based on the total deal value, including any potential earn-outs you might miss. You end up paying for 30% that you will never receive.
I suggest you only pay a commission based on the actual realized deal value. This makes your broker more hesitant to accept a hefty earn-out, as it directly affects their wallet. This aligns your interests more closely with those of your broker. You could easily save twelve thousand euros on a million deal value. Are such pieces of advice valuable to you?
‘If only I had come to you earlier!’ is a sentence I often hear from entrepreneurs after they have sold their business. The earlier, the better. The ideal time is more than a year before you intend to sell your business.
Knowledge Conversation: The Pitfalls
I offer entrepreneurs a knowledge conversation where we discuss the pitfalls. Additionally, we delve into the different types of business brokers in the Netherlands, your business results, the ideal time to sell, your business value, and how best to maximize it. It is not uncommon for entrepreneurs to check in with me regularly for advice during the lead-up to the sale and the sales process.
If you are interested in a € 250 knowledge conversation, you can make an appointment via this link. Feel free to give me a call as well.