Selling a Business
Odin will lead the process of selling your business at the best possible price and conditions, while freeing you up to focus on what you do best, running your business, without distractions.
Sellers can be motivated to sell a business for many reasons:
- Value creation goal reached
- Time for lifestyle change or retirement
- Desire to pursue other ventures
- Lost interest or energy
- Partner disputes
- Health concerns
Most successful entrepreneurs did not start with end of their business in mind, but at some point they will reach the conclusion that it is time to part ways with their business and realize the value of all the hard work and challenges solved, early mornings and late nights, doubts and worries along the way, and crystalize a sense of accomplishment.
Odin Business Brokers will step into your corner and discuss your upcoming decision, the timing of a selling process and what needs to be considered and completed before moving ahead. The optimal timing for you could be yesterday, today or some time down the line. The best selling processes are often those that are proactive and planned, as opposed to a reactive one, outside of your control.
Having a properly structured sales process is key to maximizing the value you take out of a sale, as well as maximizing the probability of a successful closing. Part of this process is ensuring strengths of your business are highlighted, you have complete and well-prepared financial figures and how you present the risks and mitigants of your business. It is also important to maintain a disciplined, respectful and professional approach, in what can be an emotional roller coaster.
We understand the importance of selling your business and we know that it represents years of hard work and will have big implications for your future. You deserve to be in capable hands and this process should be demanding, but not hard or nerve wracking.
After an initial meeting with Odin to discuss your plans, our capabilities and assess whether there is a mutual fit, we will follow our business selling methodology to lead you to a successful outcome. Read more about our methodology below.
Odin's Business Sale Methodology
Step 1 - Value Determination
Step 2 - Identification of Buyers
Step 2 - Identification of Buyers
We understand that you want the highest possible price. It is critical to understand the financial figures and other value considerations to determine what the value should be.
We evaluate:
- Strengths of the business and likelihood of strengths persisting
- Position in the market
- Growth potential and synergy effect for a new owner, always understanding that some potential can be sold but that the realization of some of the business’ future potential will require hard work and capital from the next owner
- Value realized by similar businesses sold
- Current financing conditions on the business by type and potential buyers
We believe it is our job to highlight, lean forward and advocate for the value of your business, following a solid justifiable methodology. We do not throw out a “silly” ask or base our value estimate on the seller’s subjective opinion. Odin does not try win mandates by promising a high value only to negotiate down the value later. Based on our long experience, we know that this approach serves neither the seller nor the process very well.
Step 2 - Identification of Buyers
Step 2 - Identification of Buyers
Step 2 - Identification of Buyers
We understand that putting your business in front of strong buyers is key.
We work hard to:
- Determine the buying pool by analyzing the potential universe of buyers which may include a specific individual profile or players in the competitive landscape or other industries seeking to enter your space.
- Vet or pre-qualify potential buyers and understand their ability to complete a transaction, steering clear of buyers who are in the business of looking at businesses.
- Ensure buyers sign a non-disclosure agreement to protect the confidentiality of your business.
- Verify candidates are not trying to just learn your business or window shop your business, waste your time and potentially giving away valuable and proprietary information.
- Only making introductions to you after they have properly engaged in the process.
Step 3 - Navigation of Deal Complexities
Step 3 - Navigation of Deal Complexities
Step 3 - Navigation of Deal Complexities
Every transaction has its ups and downs, and we work to navigate these while keeping it on track. We have a successful record of working through unexpected changes such as market conditions or attempts to renegotiate price.
We communicate in a way that is both proactive and reactive, ensuring that things within your control do not go wrong while on the path to a successful transaction:
- Accountants – we need to understand, restate and present key information in a way useful for buyers and their efforts to understand the financial performance of the business.
- Lawyers – we act as your bridge between sets of attorneys ensuring they respond at the pace of business and the deal stays on track.
- Banks – we help to make sure that the buyer's bank has complete information. The bank will only move forward when comfortable with all aspects of the transaction.
Step 4 - Negotiation and Closing
Step 3 - Navigation of Deal Complexities
Step 3 - Navigation of Deal Complexities
We will negotiate and look beyond the closing date of the transaction, ensuring you have received guidance to successfully onboard the buyer to the business and onboard you as the seller to your future on the best possible terms. We work with you to determining the appropriate transitional support – for how long, how many hours per week, on or off site and whether additional compensation is needed.
It is in both the buyer's and seller's interest to ensure a smooth transition, particularly when selling a business to a buyer who needs some transitional handholding and introduction to parties that interact with the business as well as employees.