Selling a business calls for  business owners to accomplish the things that need doing but we didn’t have time for.  A perfect example of this is be] obtaining the individuals part of your business organization accounted for, organized, and documented.  Potential buyers will ask to review it, and being prepared sets a superior tone for the sales process going forward.  What is it that possible buyers can observe?

As enterprises have flattened and deconstructed their rigid hierarchies, the jobs and paths within firms became less clear.  In some businesses, they never were formalized.  As an example, job descriptions, if they exist, are usually unclear, generic and dated.  They should be clear, comprehensive and applicable, nevertheless flexible enough to adapt if needed.

The job goals are to be easy, measurable, customer driven and easily understood.  You may also want to own a crisp understanding of hiring requirements for open positions.  Now everyone will be aware of what everybody else does and what isneeded going forward.  A potential buyer will not, and can want to have this documented to move forward with the sales process.

Job levels deserve a contemporary look, too.  They will be focused on technical or managerial experience, or some combine of the two.  What is important is defining them consistently throughout the organization by the amount of responsibility and authority.  Documented career methods need to show the logical transition points to maneuver up, down and laterally within the organization.  Benchmark compensation plans against business standards. 

Review the organization structure as a whole.  Take into account if the structure effectively supports the company’s mission and goals.  Are the management structures and staffing levels where they should be?  Where does the authority reside, and will that reflect current needs and effectiveness? 

A review of the structure needs to  conjointly consider if there are job positions, work groups or departments that need to be removed or added.  What trade benchmarks will be used for comparison?  Are there workers that would be more effective in another position, or with an investment in training?  Are there staff you have problems seeing a future for?  It is vital that these issues are dealt with now while you have a chance to.

Once the compensation schemes, jobs, career roads and plans are documented, they must not just be left filed away.  The corporate department and individuals transition throughout the sales process.  This is often a living process that should be reviewed at least once a year as a normal business practice.  Put it on your calendar as an annual  method no matter what happens during the sales process.

If there is  a potential joining on the horizon for your business, you and also the new owner will need to work through how this can have an effect on the organization structure and staff.  Having this information clearly documented becomes the basis for not just the approach to merge, but is a component of what the price is for the merger.

This is not exciting work, and nevertheless cannot be placed somewhere else any longer.  When selling a business, you should be prepared for the inevitable questions and requests for data buyers can have.    It will impact their view  of your company and the way they price it.

I invite you to attempt these ideas during your journey to sell a business.

Marian Cook is a highly sought after business transition expert and speaker with over 25 years experience helping business owners design their best-life exit strategy, and improve their business performance and valuation.  She is the co-author of “Selling Your Business For More:  Maximizing Returns For You, Your Family and Your Business” (published by Macmillan).  If you are ready to sell a business and jump-start your business sale process, connect with Marian via her free tips, articles, checklists and blog at Business Transition Experts.

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