| Few people enter into business with any thought | | | | mergers and acquisitions. This is the sole business |
| of how they will exit the business and realize | | | | of Fleetridge Pacific and we know the market of |
| returns in their investment of time, money & | | | | potential buyers and sellers. |
| resources. Most entrepreneurs are too busy | | | | 3) Determining your Exit Strategy- Determining |
| getting their business to a point that it becomes a | | | | your exit strategy will help you and your broker |
| profitable smooth running operation. A few years | | | | identify what types of buyers will be interested in |
| down the road, there comes a point when the | | | | your company. What are you hoping to achieve |
| founder may want to find a way to exit the | | | | when you sell your company? Do you want to |
| business he developed. Some tire of the every | | | | continue to work with the buyer after the |
| day grind of running a homecare agency, some | | | | transaction is closed or are you looking to retire |
| just want to diversify their assets and "take | | | | shortly after the sale closes? This will also help |
| money of the table" and some just simply want | | | | you, the broker and your other advisors, |
| to retire and do not have family or partners that | | | | structure the deal as well as the transition to the |
| are capable or willing to continue growing the | | | | buyer once the sale closes. |
| company that they have started. If you consider | | | | 4) Enhancing Your Company's Value- If after a |
| selling your business, there are things that should | | | | financial assessment you are not satisfied with the |
| be done, well in advance, in order to maximize | | | | valuation of your company or looking for ways to |
| what you can get out of the business. | | | | enhance value, identify how to enhance the value |
| 1) What is your Business Worth?- The first step | | | | of your company through marketing programs, |
| in deciding whether or not to sell your business is | | | | increasing operational efficiencies and exhibiting |
| to get a clear understanding of what your | | | | good fiscal & regulatory controls. You and your |
| company is worth. It may make sense to engage | | | | broker can identify specific actions on how to |
| the services of a homecare industry expert to | | | | enhance current and future values for your |
| garner an honest assessment of company's | | | | company. |
| worth. This should be done well in advance of | | | | 5) Understanding the Acquisition Process- Buying |
| selling, and repeated periodically over the years, to | | | | and selling businesses take tremendous amounts |
| give you an idea of what companies similar to | | | | of work and can be quite stressful. Sellers should |
| yours are selling for. Not knowing what your | | | | know before they start what the process |
| company is worth may result in you either getting | | | | involves and approximate timelines in which to get |
| less than the business is worth or not selling your | | | | a deal done. They should also understand the roles |
| business because your expectations are | | | | of intermediaries and other consultants, such as |
| unrealistically high. | | | | accountants and lawyers, as they are an integral |
| 2) Identify an Intermediary/Broker - There are | | | | part of the acquisition/divestiture process. Not |
| many intermediaries that you can use to sell your | | | | understanding the process can cause problems |
| business. Oftentimes, entrepreneurs first ask | | | | and frustration and ultimately lead to a very long |
| outside accountants or lawyers to help them. | | | | or unsuccessful effort to sell your business. |
| Some try and do it themselves, while some | | | | 6) Knowing the Right Time to Sell your Business- |
| engage investment banks or experienced | | | | People don't get into the homecare business with |
| intermediaries. Most brokers and intermediaries | | | | the intention of selling but at some point, people |
| work on some sort of incentive based scheme | | | | do make the decision to sell. Market prices tend |
| and consequently may try and get the contract | | | | to go up and down, even within the different |
| by giving the potential seller a very high valuation | | | | sectors of the homecare industry, be it skilled |
| for their business. It does not do you any good to | | | | certified agencies, private duty/homemaker |
| hire a business broker who gives you a good | | | | services, DME and IV infusion. Knowing when to |
| valuation for your business and is ultimately unable | | | | exit from our business can make a tremendous |
| to sell it. A good broker will give you an honest | | | | difference in the sale's proceeds. There is some |
| assessment of what your business is worth and | | | | truth in the adage that you will get the best |
| start finding potential buyers for your business | | | | valuations when you don't necessarily need to sell |
| soon after they have started marketing your | | | | and the worst valuations if you need to sell |
| company. Find an intermediary that knows your | | | | desperately. Knowing when to sell can make all |
| business and has experience in healthcare | | | | the difference. |