Pest Management Professional, September 2018

2018 MERGER GUIDE 10 tips to prepare for a sale PHOTO ISTOCK COM SIROZHA M any pest control business owners started their companies from the ground up They secured a truck some needed equipment materials and supplies and along the way they built a successful business In the end many pest control businesses will change hands What can pest management professionals PMPs do to prepare to sell their companies and increase the value and sales price GETTING READY You must consider many factors and take several steps before putting your business on the market Making strategic decisions prior to selling will help you achieve the highest possible value for your company Here are 10 tips to help you get ready 1 PREPARE EARLY Time is the friend of the seller If you are in a hurry to sell you will lose leverage value and possibly control of the deal When a business is prepared for a sale everybody buyers sellers customers and employees wins and the process runs smoothly A sale is all about details You want to be able to demonstrate to any buyer that your business is well run with many best practices in place 2 SEPARATE FAMILY ISSUES FROM BUSINESS ISSUES When it is time to sell your business solve any outstanding family problems in advance Identify and address hidden family issues such as Non productive payroll wherein a spouse or child is on the companys payroll but does not really work in the business Excluded assets which are personal possessions some sellers keep at their companies but will want after the sale Buyers see all kinds of personal possessions around the office old cars boats pianos memorabilia hunting and fishing gear etc that are not intended to be part of the sale Help the seller by making your workplace free of personal items you want to keep Clean up and restructure family expense habits such as costs related to travel dining out memberships etc Before buyers take a close look at your business take steps to increase its value By Kemp Anderson PMP Contributor Doing so will help during the selling process because it allows buyers to clearly see the financial strength of your company 3 ARTICULATE YOUR COMPANYS HISTORY CULTURE AND VISION The ability to tell your story is important and adds value to your sale Helping the buyer understand the history of your company the current culture and the vision will help put the buyer at ease The history of your company really is important for the sale How did you start out Why did you start a pest control company What milestones have you reached How did you fund the start and growth of your company Why are you selling What will you do next and why Understanding your history will help buyers continue your business into the future Be wary of a buyer that does not want to hear your story For some people company culture is a fuzzy term Ask yourself What are the values that drive my company It is important for sellers to be able to articulate the culture of the company they are selling It is equally important to the transition after the sale for the buyer to show interest in the company culture What is the company vision if you dont sell While you clearly may be selling your company it is typically important to most buyers that the seller stays engaged with the business all the way to the day the sale closes To that end the sellers vision for the future and a history of consistent growth is important 4 ENSURE YOUR COMPANY HAS A TEAM IN PLACE Sometimes it is difficult to remember but you are selling your company you are not selling you In fact in most sales the seller will transition out of the business sometime in the first year after the sale Most prospective buyers really want to see a team in place Do you have a management team or MG8 September 2018 Pest Management Professional mypmp net