5 PHASES FOR PRE-PREPARING A BUSINESS FOR SALE BEFORE WE PASS THEM ON TO OUR M&A/INVESTMENT BANKER PARTNERS
IMPORTANT: BGD NEVER OFFERS COMPETING SERVICES OF OUR PARTNERS
Our Big Payday programs are designed for businesses considering selling within 1-3 years. We help them maximize value, become irresistible to qualified buyers, and ensure that the entire experience is as joyful of a celebration as it should be. We Pre-Prepare them for our Partners.
We work with Partners to help them attract business sellers, monetize prospects that are not qualified or not interested in selling, and ultimately do deals with qualified prospects that we are not yet ready to sell. We also help Partner client buyers find additional EBITDA in business they are looking to acquire or have acquired. Learn More.
Whether clients prefer intense, one-on-one coaching, or a Group Mastermind setting, or to be guided by our interactive, video-based self-paced training, we have a program to help them achieve their goals.
To be clear, we are here to help prepare the business to sell faster, for more money, with the best terms. Our company is NOT a Business Broker, M&A Firm, or Investment Banking Firm. Our laser focus is to prepare the client’s business for their Big Payday BEFORE they are ready to engage one of our expert, highly selected Partner M&A/Investment Banking firms.
Target Clients: We work with successful entrepreneurial lead companies with revenues between $1-$25M (we have experience in nearly 300 industries). Scott personally works with larger companies on a highly selected basis.
In Scott’s #1 bestselling book, “The 7 SuccessDrivers To HyperGrowth”, he shares SuccessDrivers™ to Building A GREAT Company. It stands to reason that these should be included in the list of things that professional buyers will look for in a company to acquire.
Here is our 5 Phased Approach we take clients through to pre-prepare their businesses for sale (more details below).
Phase 1
THE FASTTRACK TO PROFITS
(IN LESS THAN 90 DAYS)
The ProfitAcceleration System™
Becoming a GREAT company that maximizes growth and profitability first involves a laser-focus on profit acceleration by optimizing and maximizing the ProfitDrivers™ in your current marketing, sales and client value maximization activities.
We find that most companies have 20% of untapped, rapidly actionable profit potential. We were an innovator in this technology and have over 20 years of success strategies, tactics and best practices to draw upon.
In the first 30 Days: The ProfitAcceleration Strategy Session™: We will help you and your team create a model for increasing profitability significantly, without any additional investment in marketing, sales or technology.
Over The Next 60 Days: We help you rapidly identify simple, easy to implement strategies and systems that will accelerate their growth, both in the short term and over the long haul. This includes helping you and your team cultivate the “low hanging fruit” revenue and profit that can line your pockets and fund further growth to drive up your business’s valuation.
Generally, clients pay for our 12-month engagement fees, multiple times over, during the first 30 days, all from newfound profits we help them create… making our services effectively FREE. We call this Self-Funded Coaching.
Clients can engage us to perform Phase 1 as a stand alone service.
IMPORTANT: As a business is often valued at a multiple of 4-7 times “net profit” (EBITDA), every $100,000 of added profit streams can add $400,000-$700,000 or more to your business valuation.
*One of several methods used for valuing a company.
Phase 2
THE SYSTEMS
Once you maximize and optimize results in Phase 1, it is time to LOCK these best practices into place so they continue to consistently produce high performing results. GREAT companies are SYSTEMATIC MACHINES! Having effective systems in place, both the technology and processes, is more important today than ever in building a rock-solid business that can run without you, and produce predictable results over the long run.
We will help you implement or improve your data collections, KPIs, and reports so the buyer has a crystal-clear picture of how the business is performing, as well as the predictable results for the future.
Most importantly, we first focus on the current processes and procedures (formal or not) that are effectively in place. This ensures the greatest impact on results and the least interruption of the day to day operations.
Purchasers LOVE the certainty that a well-run, systematic company provides.
PHASE 3
ACCELERATED GROWTH
The PREDICTABLE MARKETING SYSTEM™
With your profits maximized and results locked in, it is time to leverage that success by focusing on expanding your marketing and sales tactics and channels. Your efficiencies allow you to drive in even more qualified leads and convert more of them to high paying loyal customers, clients or patients.
You may being saying to yourself, “Scott, why is this not Phase 1?” Good question. The answer is simple. Before a company invests in additional ways to increase customers, some very costly and not effective, I believe you need to first cultivate the “low hanging fruit profit” within the business. This is the quickest and easiest for the team to execute.
We focus on both on and offline marketing, and if applicable, help train sales reps, and even help with hiring superstar reps.
The Predictable Marketing System helps create predictable new client, customer or patient flow. It also helps ensure that no single customer exceeds 15% of revenue (a BIG no-no).
An important, potentially game changing component of the Predictable Marketing System is, what we call, The Secret Sauce. That is, what is your “Compelling Competitive Advantage™” that differentiates you from competitors and positions you as the only logical choice in the marketplace.
Differentiating your business from your competitors is critical to maximizing revenue, price, and profitability. It is also a powerful business valuation driver.
The bottom line is by showing faster future growth, your business is worth more money!
PHASE 4
THE POWER TEAM
You cannot become a truly GREAT, sellable company without having a POWER TEAM.
In this phase we work with clients to evaluate their current team, and determine if any additional resources may be needed to take the business to the next level… and give buyers certainty that the business will thrive without the founder, especially if the goal is to exit the company.
Statistics show that the majority of founders leave the company within 2 years of selling it, and a surprising number leave within one year (often not a happy ending). Therefore, savvy purchasers place big value on a strong team and culture that will stay the course.
Stellar Culture: Often a loosely used word with little backing, GREAT companies understand that an amazing culture, which is fully lived and breathed throughout the organization, is one of today’s ultimate success tools. It helps them recruit and retain top talent, improve performance in all areas, and is infectious to professional buyers.
PHASE 5
KNOW YOUR NUMBERS
Having accurate clear financial reports, and performance metrics and reports are critical to running a GREAT company, as well as creating strong credibility with interested buyers.
Although Profit and Loss Statements are important, Cash Flow Statements are even more important. NOTE: Down the road when you are ready to sell your business, you will develop a detailed financial statement and tools that the buyers will require.
Having the numbers is good. Knowing and understanding your numbers is great. Buyers value an entrepreneur that is on top of the business’s finances, metrics and KPIs.
Interested in learning more. How we can help you generate more clients, earn residual income, turn your leads into cash and create a competitive advantage in your market?
Let’s have a casual conversation
Register Now for a Free 15 Minute Discovery Session
Have Questions Before You Are Ready To Talk?
Simply email your questions to BigPayday@ScottHallman.com.
