When you are ready to sell your medical company, there is a long list of things you must never do. They range from not waiting too long to sell to pricing your business properly. Working with a business broker for medical companies Orange County will help avoid most of these problems. All the same, it is good to always familiarize yourself with the top mistakes you need to avoid.
Failing to manage confidentiality
If your management team and staff gear and feel rumors of the sale, you can be certain that most of them will start searching for greener pastures. This is due to the fear of the uncertain future. Your competitors will also start poaching your best employees while your lenders and suppliers will start abandoning you. To avoid all these issues, you need to keep the sale a secret. A business broker for medical companies Orange County is best suited for this. They have completed many sales and will know how to effectively manage confidentiality.
Crafting open ended Letter of Intent
A Letter of Intent has to be crafted and signed by both parties. Before you enter due diligence, it is imperative that you ask your business broker in San Diego to review and insist on the details. The ideal LOI is one that is clear, comprehensive and satisfies the objectives of both the seller and the buyer. The LOI relinquishes control and power of the transaction process to the buyer. Make sure it is clear and well spelt out.
Not organizing employees to remain post transaction
Buyers want to buy a business that will not be hectic to run. That is why you need to document all your systems and processes. That way the new owner will be able to take over without any issue. In addition to that, to make your business more enticing to buyers you need to ensure there is a team that will remain post transaction. To do this you need contracts and incentive programs that keep employees from leaving once the transfer of ownership is complete.
Failing to have a fall back plan
Last but not least, you need a fall back plan. It is possible for a deal to go all the way to the closing table and still fall apart. When this happens, the last thing you want is to be so infuriated that you give up on selling your medical business. A backup plan may include approaching additional buyers or continuing operations.
A lot goes into the sale of a business. Working with a competent business broker for medical companies in Orange County will help avoid these and more mistakes. Hire someone with a high success rate.