Somebody must do the work…
By: Guy Addison – Managing Partner at Addison Advisory Incorporated
12 March 2020
Many business-people believe they can complete a business transaction on their own – and many do just that. However, the work involved is generally underestimated (if done properly) and what’s more, the results of a poor job are hard to identify during the transaction but may be painfully obvious shortly afterwards.
A reader of two prior posts “Positioning Your Business for a Sale” and “Who will Buy Your Business?” asked if there is a lot of administration involved when selling a business? It would be hard to say no, but a more detailed explanation is necessary to justify the response.
Completing a transaction requires time, multi-tasking and negotiation skills – as a bare minimum. Most people love the headline grabbing aspects of transactions, but that belies the overwhelmingly boring details that accompany any worthy headline.
Good deals happen when the ‘data-threshold’ of both parties is breached. Meaning, if you can’t get the right-details and the details-right or find someone who can – you are unlikely to close that all-important deal. Truth be told, this is where the ability to close matters – the ability to execute. The innate ability to progress a deal to (and often past) close is what defines who is around when it comes time to enjoy the fruits of one’s labour.
So, what do you do if you are not necessarily the ‘detail orientated type’ or simply don’t know what to do?
Option 1: Educate yourself
The oft quoted phrase of ‘investing in oneself’ is at the core of this approach. A myriad of online courses are available and of course there is always the formal educational institutions. This is a timely and often expensive exercise, but you will learn about an element of business that will invariably improve your deal-making skills. To start, I suggest you check out this online resource called the middle ground guide here. Sadly, it’s likely that you are just too busy to fully engage in Option 1 – so how about option 2….
Option 2: Get help
Yes, using a transaction intermediary is a tried and tested remedy which is not rocket science. However, the right professional can reduce a complex and stressful situation by retaining perspective and bringing their skills and experience to bear on your transaction. There are professionals (like me 😊) that have decades of experience learning how, what and where the pitfalls are. At Addison Advisory, we enjoy helping clients achieve their business and financial goals and can often unlock seemingly insurmountable challenges. Transaction intermediaries help to speed up the time to complete a transaction, manage the project and may even negotiate on your behalf. Overall, the benefit of the second suggested approach is that transaction costs are often reasonable, and a quality transaction is completed on time.
If we can help you complete that all-important transaction, please make contact.
Guy Addison is a Chartered Accountant, specialising in corporate finance consulting. He works with high-potential businesses on share transactions and structuring investments.
This article first appeared on LinkedIn.
For further information:
Addison Advisory Inc.
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