E26 - Q&A with host Will Blake, Owner of Vesta Foundation Solutions
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Your company has value. And someone is willing to pay you for that value. This episode is specail one. Will Blake shares his story of selling his foundation repair business. Learn how to increase your company's value, what not to do, and your options for closing a bigger deal.
Six Steps to Selling your Construction Business |
Contracts can be the blueprint for a smooth project or a roadmap to a headache (or lawsuit). Here are five practical things every contractor should know about their contracts:
. Assessing Your Readiness to Sell
- Evaluate Your Personal Goals: Understand your reasons for selling. Retirement, pursuing other ventures, or financial needs are common motivators.
- Determine Your Timeline: Set a realistic timeline for the sale process, factoring in preparation and market conditions.
2. Financial and Operational Health
- Clean Up Financials:
- Ensure financial statements are accurate and up-to-date.
- Consider hiring a CPA to audit your books and verify the financial health of your business.
- Review Contracts and Liabilities:
- Check all existing contracts for terms that might affect the sale.
- Resolve any outstanding disputes or liabilities.
3. Increasing Business Value
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Enhance Financial Performance:
- Boost profitability through cost-saving measures and efficiency improvements.
- Diversify your client base to reduce dependency on a few major clients.
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Optimize Operations:
- Streamline processes and implement technology solutions to improve productivity.
- Update and maintain equipment and assets to ensure they are in good condition.
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Strengthen Your Brand and Reputation:
- Gather testimonials and case studies to showcase successful projects.
- Invest in marketing to enhance your brand’s visibility and reputation.
4. Deciding on Sale Structure
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Sell the Entire Business:
- Consider if selling the entire business is the best option for you.
- Prepare all assets, including equipment, inventory, and intellectual property, for sale.
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Retain Partial Ownership:
- Explore options like selling a majority stake while retaining a minority interest.
- This allows you to continue receiving dividends or maintain some control.
5. Finding the Right Buyer
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Identify Potential Buyers:
- Look for strategic buyers (other construction companies) or financial buyers (investors, private equity).
- Network through industry contacts, brokers, or industry-specific M&A advisors.
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Prepare a Comprehensive Offering Memorandum:
- Include detailed business information, financial statements, client lists, and growth potential.
6. Negotiation and Deal Closure
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Negotiate Terms:
- Work with your attorney and accountant to draft a sale agreement.
- Consider terms such as payment structure, warranties, and post-sale involvement.
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Conduct Due Diligence:
- Be prepared for the buyer’s due diligence process, which includes audits of financials, legal matters, and operational aspects.
- Be prepared for the buyer’s due diligence process, which includes audits of financials, legal matters, and operational aspects.
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Finalize the Sale:
- Review all documents carefully before signing.
- Ensure all regulatory requirements and contractual obligations are met.
Want to discuss your business and increase your value? Schedule a consultation with Will Blake today!
