Corporate partner Pablo Svirsky authored an article for the Indianapolis Business Journal titled, “So You Want to Start — and Sell — a Business,” that provides some tips to keep in mind when starting a business that will benefit its owner when it comes time to sell to a third party.
Svirsky explains that entrepreneurs should put themselves in a buyer’s shoes and answer any questions or concerns they would have. He also notes that, to the extent that a buyer will need to put effort and resources into getting your business up to speed in certain areas, they will quantify those efforts and try to reduce the purchase price accordingly.
The article highlights that keeping contracts and documents organized, labeled and signed will make the selling process far easier and establishing a strong and long-term supply chain is critical to assuring a buyer that they can immediately capitalize on your business after closing.
Lastly, Svirsky emphasizes the importance of involving legal counsel from the outset and how a great attorney will be able to advise on what to avoid, what’s worth doing, and what one can get away with during the early-stage process.