Most small business owners have the dream of selling their company. Sometimes they are able to sell it to their competitors. Other times private equity firms buy a majority of their company and invests money to grow it more instead of a 100% sale. This gives the former small business owner “another bite at the apple” to sell their minority percentage share when the company is much bigger.
On The Small Business Radio Show this week, I discussed this with Jason Hendren who the author of “Things I Wish I Knew Before I Sold to Private Equity”. He is a sought-after CEO coach, speaker, and exit-planning advisor. Jason is an award-winning entrepreneur and has extensive expertise as a buyer and seller of businesses.
Here are the key discussion points from our interview:
- In the early stages of running a business, how start-up owners can preserve capital and avoid the time-consuming practice of raising money from outside investors.
- How to properly plan for a financial exit of your small business.
- How owners can align their interests with their employees’ interests when selling their business so everyone can prosper.
- Why it’s time to improve the valuation of your company well before the sale process starts.
- What advisors you’ll need when planning to sell your business. (You will need more than one!)
- What type of deal you should strike with a private equity firm.
- How to maximize your return after you sell a majority of your company to a private equity firm.