When it comes to selling a business, successful outcomes don’t happen by chance. You can make an enormous difference by preparing thoroughly, defining your business processes, and proactively attracting buyers. Not only does following these steps help with an eventual sale, but the steps you must take to prepare your business will also help you recapture time and enable you to step away from your company without slowing its growth.
Max Friar of Calder Capital, LLC recently spoke with Adi Klevit about what it takes to make a business truly marketable, featuring practical insights from the world of mergers and acquisitions.
What is “Mergers and Acquisitions?”
The highly specialized area of Mergers and Acquisitions, or M&A, deserves a brief description here, as it’s not something every business owner thinks about as they launch or grow their business.
M&A is the process by which companies are bought, sold, or combined to create greater value. Whether you’re looking to sell your business or acquire another, M&A represents one of the most significant and complex events in the business lifecycle.
With that explanation out of the way, keep reading to find out why systems matter in the short and long term, how you can build a sellable business, and a proven process for attracting buyers.
Why Systems Matter When Selling Your Business
One of the core truths of the M&A process is that buyers are drawn to businesses that run smoothly and aren’t dependent on a single person to function. This is also something that business owners hope to accomplish when setting up their business for scalability, which means that following the steps below is a win-win.
So, how do you set up your business so you can step away without affecting growth?
The answer is:
- Establishing well-documented procedures that the whole team follows,
- Building a well-oiled management structure and
- Creating clear roles to ensure everyone knows what is expected of them.
These three steps make it easier for a business owner to step away without a dip in quality or growth. They also make the business easier to value and transfer to new ownership. By creating a business that you can step away from, you are creating a much more sellable business that will likely be attractive to a broader range of buyers.
Businesses with well-defined systems stand out and often command higher valuations and more offers.
Building a Sellable Business: The Power of Documented Processes
A business that is ready for sale is one where key operations, workflows, and responsibilities are clearly documented. After all, any buyer would prefer a business where knowledge doesn’t live solely in the owner’s or a few employees’ heads. That knowledge needs to be captured in accessible, repeatable systems.
Follow these steps to increase marketability:
- Document your core processes in all departments including sales, service delivery, hiring, and financial management.
- Develop leadership and management depth so the business can operate independently of the owner.
- Ensure key knowledge is transferable through manuals, checklists, and ongoing training.
Preparing Your Business for a Successful Sale
It is never too early to start preparing for a future sale. In the short term, you will have a business that can run without your constant input, that you can step away from for a vacation or illness, and that you run - it doesn’t run you. Plus, it’s sellable for when you are ready to sell, even if that time is a decade away.
Here’s how you can start preparing:
- Build or update your process documentation.
- Train and empower your team to handle critical operations.
- Consider how your business appears to a potential buyer. Can you step away? Would someone new be able to step in and succeed?
- Use technology for automation, data sharing, communication, and more.
Then, when you are ready to sell, be sure to find an advisor or group of advisors who can help you reach the broadest possible audience of qualified buyers.
Proven Processes for Attracting Buyers
Let’s say you have done all of the above and would like to sell sooner rather than later. Max and Adi discussed certain foundational practices that consistently lead to stronger buyer interest and better deal outcomes:
1. Begin With a Rigorous Valuation and Clear Expectations
A detailed valuation process helps owners understand the actual market value of their company and sets realistic expectations. This upfront step ensures that sellers and advisors spend their valuable time on deals that will likely succeed.
2. Expand Your Buyer Pool
Don’t limit outreach to a handful of prospects. Effective advisors use a mix of targeted buyer lists, extensive proprietary databases, and public marketing platforms to ensure every opportunity is visible to as many qualified buyers as possible. The goal is to generate real competition and find the best fit.
3. Leverage Automation for Efficiency
Automated communications, reminders, and follow-up sequences streamline the process for both sellers and buyers. Technology can help manage the high volume of inquiries, ensuring each prospective buyer receives the right information while freeing up staff to focus on high-value interactions.
4. Prioritize Both Value and Fit
Selling a business is not just about price. Cultural alignment and operational compatibility are critical for a successful transition. Utilize screening processes to lead to better long-term outcomes for all parties.
Creating a sellable business isn’t just about timing the market. Instead, it’s about investing in the right systems long before you’re ready to exit. System implementation provides both long-term and short-term benefits for you as a business owner and as a future seller.
Start building your systems today. The right processes won’t just help you sell—they’ll help your company thrive for years to come. Get in touch with the Business Success Consulting Group team, and we will provide you with a free initial process mapping session.
