Would You Take a Phone Call Worth $7 Million?
Lessons learned during a sales call can help your business.
Nobody likes to take a sales call, especially if they have no interest in the product or don’t trust the source. However, if as a business owner, you knew there was a reasonable chance one of the calls you chose to answer might be worth $7 million, would you take the call? Recently, we sold a telecommunications company for $7 million more than what the owner thought it was worth. It all started with him taking that one phone call. And, he wasn’t even thinking about selling his company when we contacted him.
Consider these reasons for why you should take the call when the time comes.
The market is moving faster than you expect.
If a reputable investment bank is interested in your company, they have a good reason for contacting you. Perhaps the market for your type of company has changed, or the banker may already have a buyer lined up that can take your business to the next level. Take the time to listen to their story. You might learn something you didn’t realize before.
You can start to gather information for later when you are ready to sell.
Every company will sell or change ownership. This is a fact. Regardless of where your company may be in its lifecycle, entrepreneurs who effectively plan and gather useful information will realize a more promising future. There is a lot to know. Would you prefer to work with a financial or strategic investor? Do you really have to sell 100 percent of the company? How can you protect your employees? Would selling all or part of your business be a smart financial strategy that protects your financial future? An experienced investment banker can answer all of these questions and more.
What does it take to prepare to sell or find an investor? During the call, the investment banker can review what you would need to do to prepare your company for sale. You may need to update financial information, pay outstanding debts or resolve a pending legal action. Every company is unique, and learning how to prepare for a sale is one significant benefit of talking with an investment banker. They can also explain the different types of buyers and investors available to you and the advantages and disadvantages of each type.
Selling a successful, middle-market business takes 9 to 12 months and involves a wide range of activities. Owners need to understand the process well before they begin. This can help mitigate surprises and allow the owner to focus on managing the day-to-day operations that make the company successful and attractive to potential buyers or investors. Your investment banker can outline the process and answer questions you may have during the call.
Well-managed investment banks do not call business owners at random. They research the company, know who owns the business and have studied the organization and its industry well in advance of the call. A good investment banker will be a valuable resource for information and a trusted confidant when you have life changing questions you need answered. Similarly, do your due diligence as well and investigate the bank. Look for written testimonials or watch video testimonials from business owners in your industry and others. Investigate recent transactions the firm has completed, and read news articles about the firm and its clients.
Could the next call you get from an investment banker be worth $7 million? You won’t find out unless you take the call.