I have been consulting on M&A transactions for over 24 years, and I’ve seen that the sale of a privately held business can be a gut wrenching decision. But, when I hear a business owner tell me that his “business strategy” is to sell the business, it’s like chalk on a blackboard. When a business owner makes the decision to sell his business…that’s a personal decision, not a business strategy. But a clearly defined business strategy is an essential component of every well run, thriving company.
A business strategy or business plan provides a road map to follow to take the business from where it is now to realize the owners’ vision. Business strategies should be adjusted over time to account for changing goals and market conditions. A well-defined plan is essential when contemplating a sale because it (i) show the potential buyer where the business is going; (ii) how it is going to get there; (iii) provide continuity during the transition; and (iv) if for any reason the sale does not go through, having a business strategy in place can keep the company moving forward until another buyer is found.
The business strategy and personal strategy are linked but they are not the same thing. First have a defined business strategy and then work on the realization of the personal strategy while executing the business strategy.
Posted by Marc Borrelli.