Understanding the Anatomy of Selling a Business

The Anatomy of Selling a Business

Faced with a changed environment in the wake of healthcare reform, many healthcare business owners are taking advantage of favorable tax circumstances and an increased number of buyers in the marketplace to consider selling their business. We frequently see a misunderstanding of the acquisition process lead to shock and surprise as it becomes clear how much time and effort is involved. Not fully understanding the acquisition process and what is involved in each step can cause a company to miss opportunities, which could result in value left on the table.

To prevent this from happening, we developed an in-depth guide to help owners better understand the acquisition process, to see beyond the numbers to the strategy supporting every deal and to help them appropriately prepare for the sale of their business. Eight chapters provide a detailed walk-through of the process of selling a business; checklists, tips and definitions throughout the guide make it more than just a timeline – it’s a roadmap.

The guide includes detailed information about the following elements:

The acquisition process. What are the five phases of the acquisition process? How quickly can you execute the sale of your business? What are the critical elements in each phase that you can’t afford to rush?

The exit strategy. How do you build an exit strategy? What are the four critical questions that every business needs to ask in order to develop an exit strategy? Will not building an exit strategy affect the sale of a business?

The value of your business. Why is the valuation process so important? What critical elements form a business’ valuation? What can a business owner expect to happen during the valuation process?

Selecting a buyer. Who are the buyers? What are buyers looking for? Where do you find a buyer?  How many buyers do I need to evaluate?  What are the determining factors in selecting a buyer?

Protecting confidentiality. How do you ensure that the process of selling your business remains confidential? What are the potential warning signs that can alert an owner to a confidentiality breach? How do you limit exposure while you look for potential buyers?

Due diligence. What critical steps comprise the due diligence process? Why is the due diligence process so time-consuming – and what can you do to streamline the process?

Legal concerns. What four legal issues should concern you the most? What steps can you take to address these issues? What basic legal concepts should every owner understand in a purchase agreement?