Selling my business – Part II: Yes, I want to sell…what should I do..

by February 16, 2010 Entrepreneur's Corner

Getset and Go decided that they did, after all, want to sell a stake in their company to the Zing Group. They went back to Gyan, their advisor.

Gyan, "Looking at this in a lighter vein, you have now moved to Level 2, in this game of selling your business. Level 1 has been completed; the result – you have decided to go ahead with the possible sale. As you move on to Level 2… you need to answer the next set of questions and get into this game in much more depth."

Getset, "Oh Gyan, not again… more questions?"

Gyan, " Well this is what you get from me.. not answers.. only questions!  If I did not push you to think, I would not be of any use to you! Level 1, which you have completed, was all about self and business introspection. Level 2, which you now need to get through, is about (a) articulating your expectations clearly … post this introspection …and (b) checking the match and possible fit between you and Zing. While this offer from Zing looks very attractive on the surface and hard to refuse today… you may not like to go through with this if Zing cannot meet your long term expectations. So here are the next set of questions in Level 2. Enjoy the thinking!"

  • What are you looking for?
  • Is it … Only Money?
  • Think again please
  • If it was only about money… all those with money would do well
  • If it was only about money… all those without money would not do well
  • How many entrepreneurs do you know of who started with little or no money who are doing well today?

Next…please articulate your gaps…

  • What do you need more than money?
  • It could be
    • Opening doors to customers
    • Help in hiring key team members
    • Advisory inputs to jointly create a great company
    • What else?

And then.. the most important of all…

  • Does Zing, your potential investor fill these gaps?
  • What is the market feedback on Zing
    • Formal  and informal
    • Have they done deals like this before
    • What is the track record of such deals
    • What is the organizational culture like
    • Will there be a fit in their organizational culture and yours?

Getset and Go went back to answer this set of questions in Level 2…

Watch out for the next in the series

Selling my business – Part III: Getting ready before the sale

⊕

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About Anjana Vivek

Anjana Vivek, Advisor, Independent Director, Professor, Author, Mentor
Read more by Anjana Vivek

Comments:

  1. S. Govindkrishna says:
    February 19, 2010 at 5:22 am

    Interesting series Anjana.
    Following it with interest

    Reply

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