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