Investment Banking 101: How to Maximise the Sale of Your Business

John Colley, Digital Entrepreneurship jbdcolley.com

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18 Lessons (1h 46m)
    • 1. How to Maximise the Sale of Your Business

      3:05
    • 2. Introduction How to Maximise the Sale of Your Business

      2:54
    • 3. Understanding the sale process

      11:41
    • 4. Selling a Business Transaction Timing

      4:35
    • 5. Selling a Business Preparing for the Sale

      6:43
    • 6. Sale Objectives

      7:08
    • 7. Selling a Business Valuation

      5:34
    • 8. Pre Sale Preparation

      4:29
    • 9. Selling a Business Legal and Admin

      5:31
    • 10. Selling a Business Operational Preparation

      5:54
    • 11. Selling a Business Financial Asset Review

      8:55
    • 12. Information Memorandum

      5:51
    • 13. Selling a Business Identifying the best buyer

      6:21
    • 14. Buyer Segmentation

      7:35
    • 15. Selling a Business Due Diligence

      4:12
    • 16. Key to a Successful Deal

      4:10
    • 17. Selling a Business Deal Process

      7:01
    • 18. Selling a Business Summary and Wrap Up

      4:28

About This Class

Welcome to this Course in my Investment Banking 101 Series.

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Introduction How to Maximise the Sale of Your Business

Welcome to this brief course which I have designed to help you to maximise the value of your business when it comes to time for you to sell it.  This is not a "how to sell a business course"  This is a "how to sell a business for maximum value" course and I have really enjoyed delving into my 28 years of investment banking experience to share some of that with you to ensure that you put yourself in a position to create that result when the time comes.

Understanding the sale process

The sale process can be complex, so I thought it would be helpful to start this course by discussing some of the key stages of the sales process and sharing some insights with you about how to manage them to ensure that your sale process achieves the maximum value for you and your shareholders. 

Selling a Business - Transaction Timing

When entering into a sale process, its important that you understand the time the process will take as well as the shape and structure of the sale process. In this video I provide you with an overview of this against which we shall set the remainder of this course.

Selling a Business Preparing for the Sale

So, you are considering selling your business.  Well, lets just stop a second and take stock of some important issues you need to address with your board and your advisors before you start down this long and difficult path.

Sale Objectives

Lets put a few markers down now.  If you don't know what your objectives for the sale are, how on earth are you going to be able to evaluate the result when it comes to judging the offers which are put on the table.  Stop, take stock and do some thinking about this right at the start and make sure everyone is on the same page.

Selling a Business Valuation

How do you value a business? Answer - with difficulty.  This is the how long is a piece of string type of question.  In this video I want to share with you the main methods that are used to come up with business valuations.  At the end you won't be able to do one, but at least you will have some idea what your bankers are talking about!

Pre Sale Preparation

Prior Preparation Prevents Poor Performance.  This section is all about sharing with you my best advice to ensure that when you get into the sale process, you are as well prepared as you can be.  If you follow this advice and get your business sorted out before you start, its going to be a lot less painful and your chances of maximising the proceeds of the sale will be greatly improved.

Selling a Business Legal and Admin

Your legal advisers will give you a horrifyingly long list of due diligence items to address, so frankly, the sooner you start looking at them the better.  This lecture highlights some of the legal and admin issues which must get sorted out.

Selling a Business Operational Preparation

Next, I want to take a look at some of the key operational issues you can address to maximise value. Some of this is about downside protection but its also about optimising your business' operations today - which is a good thing to do anyway, right?

Selling a Business Financial Asset Review

Every business has dead wood and surplus assets.  Sorry, don't want to upset you but its true.  So, why not cut out the dead wood now and liquidate the surplus assets now to make sure you get the benefit from them and not your purchaser.  I am sure you get the idea!

Information Memorandum

Now, I want to talk to you about preparation for the sale process itself.  The most important document you will prepare, with your advisers, is the Confidential Information Memorandum or "CIM" ir "IM".  This lecture is a steer towards what is important to get right and a guide to help you ensure that your advisers do a good job for you. After all, you are paying for it!

Selling a Business Identifying the best buyer

Buyer selection is one of the really critical aspects of the sale process which is why I am spending two lectures discussing it.  Firstly I want to explore with you what makes a good buyer and provide you with some criteria by which you can judge the list of potential buyers your advisers will prepare for you.

Buyer Segmentation

To help you to understand the different types of buyers you may encounter I have provided this basic segmentation.  I share with you my view on the pros and cons of each type of buyer to help you evaluate their quality and potential contribution to the sale process.

Selling a Business Due Diligence

Hey, we are back to Due Dilgience!  This is not meant to put you off the whole process but if you follow my advice in this lecture, you will keep better control of what is going on and are less likely to make elementary mistakes.

Key to a Successful Deal

So, what is the secret to a successful deal.  Well, I can't give you that magic button in one five minute lecture, but I have tried to set out some guidelines which will help you towards that goal.  A successful transaction is one in which you achieve a sale at the upper end of your price expectations and that is what this course has been all about.

Selling a Business Deal Process

While I am sure your advisers are going to do a good job for you, here are a few tips to help ensure that you keep them on their toes.  You need to be in control of this process (working with your advisers) and must not allow the potential purchaser (and their advisers) to get the upper hand.

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If you want to stay up to date on my newest classes, be sure to click “Follow” below.

My followers are the first to hear about these opportunities!

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I can't wait to hear about your success!

See you inside the Course

Best regards

John