Sukay & Associates makes a strong commitment to our clients. It is the guiding principle of how we conduct any client engagement. We talk and write about that commitment and how it impacts the manner in which we conduct each process. However, it is puzzling to us when we work with parties that don’t have that same level of commitment. It doesn’t take us long to be able to gauge that level of commitment. In a perfect world, it would be ideal if all parties had the same high level of focus and effort.
After just a few contacts with either a client, buyer, other advisor or legal counsel, we can judge the difficulties that we will encounter during the sales process. If the seller requires three months to gather financial information, we know it is going to be a long process. If we ask a seller to gather information for due diligence and they haven’t gathered anything in the first two weeks, we know we will see a change in seasons before the information is completed. If the legal counsel asks us to explain a direct bill policy, we know we are in for a real struggle.
A lack of commitment can result for reasons other than when they don’t meet a deadline. The seller might provide the information timely, but it is inaccurate or incomplete. The agency could have $5 million in revenues, but a book of business report shows only $3 million. Often the party doesn’t delegate the responsibility to someone that has the ability to get the job done. Here are some observations for anyone that is thinking about a sale of their company.
Thinking About Selling Your Agency?
1.) The sales process is difficult.
It is emotionally hard and it requires a dedicated team of people to get you to the finish line.
2.) Size doesn’t matter.
The process is the same despite the size of the agency. Larger agencies tend to be more complex, but smaller agencies often lack the systems and staff required to undertake a sale.
3.) The buyer has committed to you.
If you are selling your company, the buyer has made a large financial commitment. The effort you undertake will make a favorable or bad impression. We suggest that you make a good impression.
4.) You want it to be hard.
The sale of your agency may be the single most important accomplishment of your professional career. Anything that important should be difficult. It should be a lot of work. It does not have to be frustrating. Most buyers today are very professional and will work very hard to complete the sale. They normally close many deals. The seller will most likely only go through this process once.
5.) A Weak Sale results from a lack of commitment and it makes a hard process even harder.
So if you are considering a sale make sure you are committed to the process. If you want to know our definition of commitment, I would refer you to the video below which is also on our website. It will describe how we define commitment.
We have found that the most successful clients are those who are totally committed to the process from the start. That focus and effort continues throughout the engagement. They remain committed until they reach the ultimate goal. Business owners that have been successful are proud of what they accomplished. They are not afraid to share how they achieved their success. They take great pride in receiving strong positive feedback on their agency.
Be careful of a weak sale! Prevent it at all cost.
