Are you a business owner preparing to sell your business? This article includes advice from an expert at a private equity firm. Industry veteran, Lamar Stanley is a Director at Gen Cap America, a lower middle market private equity firm in Nashville, Tennessee. Stanley holds a B.A. degree from The University of the South and an M.B.A. from The University of Chicago.
Stanley has amassed a considerable amount of knowledge and expertise over the decades. Here are a few insights he shares.
Understanding Small Business
Stanley points out that many so-called “overnight successes” are actually the result of ten or twenty years of hard work. It is through these years of hard work and focus that entrepreneurs are able to grow their business. These business owners need to have a vision and the insight to bring on great people to help build their business.
The Benefit of a Deal Attorney
Stanley believes that working with a deal attorney can make a tremendous difference. It can increase the chances of a successful transaction. Deal attorneys understand the deal process and can help streamline the process.
Deals can sometimes drag on for months. Working with an experienced deal attorney can help expedite the entire deal process.
Preparing in Advance for a Sale
Stanley feels that it is important for a business owner to think about selling as soon as possible. A business owner should be thinking about selling when they start their business. Most business owners can’t hope to prepare for selling as soon as they create the business. However, the sooner they begin the process the better. Business brokers and M&A advisors can help business owners understand the process of selling a business. EBIT Associates is a leading mergers and acquisitions firm advising private and corporate clients on lower middle market transactions.
There are many important factors involved in getting a business ready to sell. They range from customer concentration and diversifying suppliers to preparing financial statements and working capital estimates well in advance. The sooner a business broker is involved in the process, the better.