Maximizing Business Value: What Every Business Owner Should Know With Justin Kendall

The RVA Small Business Show with Justin Kendall (Show Image)

Welcome to another episode of The RVA Small Business Show with your host Cory Mosley. In today’s segment, we are joined by Justin Kendall, Senior Advisor at Viking Mergers & Acquisitions.

At Viking Mergers & Acquisitions Justin advises sellers of businesses with enterprise values ranging from one to $50 million. His company has assisted more than 700 companies in getting the highest valuations when they exit.

Another way that advisors can help is knowing when you’re actually ready and preparing you for the sale. -Justin Kendall

The High-Stakes Game of Business Sales

Selling a business is a once-in-a-lifetime event for many entrepreneurs. The stakes are high, and the outcome can significantly impact their financial future. While some owners may be tempted to take the DIY approach, doing so without expert guidance can lead to costly mistakes and missed opportunities.

Why DIY Can Be Detrimental

  1. Lack of Experience: Selling a business is a specialized skill set that requires extensive experience and knowledge. Business owners who attempt to go it alone often lack the necessary expertise, which can lead to errors in valuation, pricing, and negotiations.
  2. Emotional Attachment: An owner’s emotional connection to their business can cloud their judgment during the sales process. A professional advisor brings an objective perspective, ensuring that decisions are based on facts and data rather than emotions.
  3. Limited Network: Business owners may not have access to the same network of potential buyers as a seasoned M&A advisor. A limited network can result in a longer sales process and potentially lower offers.
  4. Legal and Tax Issues: Selling a business involves intricate legal and tax considerations. Navigating these complexities without expert assistance can lead to costly mistakes and potential legal disputes.

The Benefits of Partnering with M&A Advisors

  1. Accurate Valuation: An experienced M&A advisor understands the nuances of valuing a business, ensuring that owners receive a fair and accurate assessment of their company’s worth.
  2. Broad Buyer Network: M&A professionals have access to a vast network of potential buyers, increasing the likelihood of finding the right match for your business and maximizing the sales price.
  3. Expert Negotiation: An M&A advisor brings negotiation skills honed through years of experience, ensuring that business owners receive the best possible terms and conditions for their sale.
  4. Legal and Tax Guidance: M&A professionals can help navigate the complex legal and tax implications of selling a business, minimizing financial risks and potential disputes.

Selling a business is a high-stakes, complex process that requires expert guidance to maximize value and minimize risk. Attempting to go it alone can result in costly mistakes and potentially leave millions on the table.

Key Takeaways:

  1. Selling a business is a specialized skill set that requires experience and expertise.
  2. Emotional attachment can cloud decision-making during the sales process.
  3. Partnering with an M&A advisor provides access to a broader network of potential buyers and expert negotiation skills.
  4. Enlisting professional guidance ensures accurate valuation and assistance in navigating legal and tax complexities.
  5. Partnering with an M&A advisor can maximize value and minimize risk during the sale of your business.

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