Once the enterprise value specialists at Ceibass have clarity on the seller’s intentions, what the seller desires from the sale of their business, and Ceibass has completed their homework to ground assessments of the lawn and landscape business itself, and the current situation in the marketplace, the next step is to develop the plan of action.
What goes into an action plan?
“A good analogy is when you are selling a house or when you are buying one. If the house is in need of repairs, dirty, and the carpets are worn you will not be able to get top dollar for the home. Conversely, when the house is all buffed out, all repairs have been taken care of, there is a new coat of paint, and the smell of freshly baked cookies are in the air, your chances of getting top dollar are greatly enhanced,” said Tom Fochtman, Ceibass CEO.
“Our job is to get your house, your business, in order. By doing so we will have more than one potential buyer interested in your business, creating more of an auction situation, and greatly enhancing your potential for a more profitable outcome. Remember like selling a home, it is best to sell at the top of the market. And this is the best seller’s market, ever,” added Tom.
What types of activities might go into “getting your business in order?” The team at Ceibass put a quick list together:
- Getting financials in order (nothing strange or goofy on the books)
- By the books accounting practices
- Reasonable debt
- Tax planning
- Management team development
- Improving the quality of equipment
- Making sure contracts are up to date and pricing is competitive
- Improving route density
- Making sure roles and salaries are competitive
- Improving company culture
- Ensuring legal compliance
- Developing the bench strength of leadership
- Helping owners figure out what’s next if needed
- Improving safe work conditions if need
- Documented HR practices
- Improvement of systems
- New offers or services if needed
- Preparation of books, taxes, equipment and contracts for inspection
- Timelines, parameters – what needs to be done by when, by whom, to what level of satisfaction
For more on the elements of the exit planning process and what goes into it, contact Tom Fochtman, 303-974-7577. Don’t delay, remember, it’s best to sell at the top of the market.