Here are some tips they mention:
- Long before you intend to sell your company – years ahead of time--think of every objection or issue that a potential acquirer might have. Is your customer concentration too high? What are the expansion opportunities, and how well proven are they? Do what you can to mitigate those concerns. Get input from people who have been through several acquisitions, on either side of the table.
- Identify strategic partnerships with larger companies that have made acquisitions in your market at attractive multiples. As you work together, you’ll sense if things are going well. If your partner values you, they’ll let you know that they may want to form a deeper relationship.
- Pick an investment banker and legal advisor well before you receive an offer for your company. This will put you in position to react quickly if you receive an unsolicited offer. Keep in mind that you’ll have weeks to respond, not months.
- When you do get an offer, analyze the benefits that your strategic partner will receive from the acquisition, both in terms of revenue growth and cost savings. You might know the potential benefits better than they do. Often you can get a strategic acquirer to pay for some or all of these benefits.
Follow these simple rules, and your great company could gain the interest it deserves.