Crain’s: Advice to Would-Be Sellers: Do Homework to Make the Best Deal
This article appeared in Crain's Detroit Business on October 11, 2015
Peter Roth is a partner at Grand Rapids-based law firm Varnum LLP who works out of the firm's Novi and Detroit offices. As a merger and acquisitions attorney of over 16 years, he has facilitated many private equity transactions.
He offered a few words of advice to would-be sellers in this interview with writer Rachelle Damico.
What are the first steps business owners should take to prepare selling their business?
Do a good internal scrubbing of the business. Find out where the problems and skeletons are in the closet. Those things will come out in a sale process, and if you identify them, many times they can be fixed and they don't become issues. If they aren't completely fixable, you can identify them with a potential solution to a buyer early in the competitive process. That way, you don't end up reducing the value you get for the business. If you're uninformed and dive into the process, and the buyer finds the problem halfway through, you're going to take a whack on your purchase price and get less value for your business.
Read the article in its entirety: Advice to would-be sellers: Do homework to make best deal