Identify your exit strategy options
Posted: Tue Dec 17, 2024 7:25 am
Whether you’ve built your recruitment business ideally to sell, fund your retirement, or pay off debts, you’re going to want one thing: to get the best possible price when you make the sale. While the whole ordeal of transacting itself is no easy task, there are some things you can do to prepare for it.
These tips will keep your recruitment business in good shape as you gear up for a clean exit on the best possible deal you can hit with your buyer.
Check your business valuation
The first question to ask here is, “What is your recruitment business worth?” It’s home owner database important to ground yourself with the reality of the situation before making any decisions, as these will determine what kind of options you have for selling—if you can look into higher bids or compromise your ideal price.
After locking down your business valuation, you can then sort out what makes your company appealing to the eyes of your target and prospective buyers. Start consulting with companies that have access to national data on private transactions in recruitment—such as accounting firms, investment banking firms, and regional business brokers.
Business sale requires a lot of consideration with regards to who you’re appealing to. Understand who you want to sell to and what price this buyer can afford. Here are the types of buyers you may want to look into:
Strategic buyers - They will typically have a pool of other businesses and are looking to buy another business that complements their chain of companies.
Financial buyer - Financial buyers are interested in acquiring gains from the sale.
Employee buyout - You can opt to sell stock ownership to your employees. This is a good alternative for when your best option for the business’s chance of success is within the internal team.
Conduct a SWOT analysis
Beyond your business’s financial numbers, taking a good look at your pillars of strength, weakness, and room for improvement will prepare you for any buyer’s questions. This way, you’ll also be able to brace yourself in how to position or phrase a response to put the spotlight on your strengths, defend your weaknesses, and explore your opportunities.
In a survey conducted on the Philippine start-up industry, it was found that the availability of talent is one of the factors that have helped business owners successfully build their start-up. For this instance, you can upsell how highly valued the staffing and recruiting industry is. Look into successes that can make your case for buyer’s confidence and a higher sale price.
Have your books ready
Have an auditing firm do a clean sweep of your financials. M&A processes may require a review of several years’ worth of your statements. Keeping this aligned also boosts a buyer’s likeliness of following through on the sale, and could potentially increase your chances of negotiating for a better price.
Keep your due diligence information organized
Buyers would want to review your business’s financial information. For this reason, you must be able to file and track your financial statements.
If you know that there are essential filings that need to be addressed, try your best to resolve them before dealing with your buyer. If not, it’s good practice to be upfront about any concerns. It also helps to have a brief explanation as to why it might have been overlooked.
These tips will keep your recruitment business in good shape as you gear up for a clean exit on the best possible deal you can hit with your buyer.
Check your business valuation
The first question to ask here is, “What is your recruitment business worth?” It’s home owner database important to ground yourself with the reality of the situation before making any decisions, as these will determine what kind of options you have for selling—if you can look into higher bids or compromise your ideal price.
After locking down your business valuation, you can then sort out what makes your company appealing to the eyes of your target and prospective buyers. Start consulting with companies that have access to national data on private transactions in recruitment—such as accounting firms, investment banking firms, and regional business brokers.
Business sale requires a lot of consideration with regards to who you’re appealing to. Understand who you want to sell to and what price this buyer can afford. Here are the types of buyers you may want to look into:
Strategic buyers - They will typically have a pool of other businesses and are looking to buy another business that complements their chain of companies.
Financial buyer - Financial buyers are interested in acquiring gains from the sale.
Employee buyout - You can opt to sell stock ownership to your employees. This is a good alternative for when your best option for the business’s chance of success is within the internal team.
Conduct a SWOT analysis
Beyond your business’s financial numbers, taking a good look at your pillars of strength, weakness, and room for improvement will prepare you for any buyer’s questions. This way, you’ll also be able to brace yourself in how to position or phrase a response to put the spotlight on your strengths, defend your weaknesses, and explore your opportunities.
In a survey conducted on the Philippine start-up industry, it was found that the availability of talent is one of the factors that have helped business owners successfully build their start-up. For this instance, you can upsell how highly valued the staffing and recruiting industry is. Look into successes that can make your case for buyer’s confidence and a higher sale price.
Have your books ready
Have an auditing firm do a clean sweep of your financials. M&A processes may require a review of several years’ worth of your statements. Keeping this aligned also boosts a buyer’s likeliness of following through on the sale, and could potentially increase your chances of negotiating for a better price.
Keep your due diligence information organized
Buyers would want to review your business’s financial information. For this reason, you must be able to file and track your financial statements.
If you know that there are essential filings that need to be addressed, try your best to resolve them before dealing with your buyer. If not, it’s good practice to be upfront about any concerns. It also helps to have a brief explanation as to why it might have been overlooked.