Will your team excite your future company acquirer?
The title of this post is a well-known expression within the acquisition community. And we’re in a period where this expression is especially true and needs to be on your radar screen as a private business owner and CEO.
To achieve your future, euphoric exit event, you’ll need to present a business to an acquirer that excites them. Having interest in your business is one thing. But to get an acquirer to pay you a premium value for your business, you’ll need to ensure that your business is ready with the right business model (the horse) AND with the right team (the jockey) as well. Acquirers buy company’s looking for capabilities and the talent behind it. Especially today, when access to talent is such a challenge for so many employers. Acquirers will be drawn to your business due to its capabilities but will fall in love with it if your team is one they can build upon.
Here are a few questions to ask yourself about your team and its readiness to excite a future acquirer:
- My team can operate my company successfully even if I’m not available to them for a few weeks or even months?
- My team has key managers with strong backgrounds and job experience to perform their roles effectively?
- My team is passionate about delivering a great customer experience and outcome for those that purchase our products and services?
- My team has the right people, especially in key leadership positions, that can help this company scale to the next level of profitable growth?
- I'd be proud to present my team to an acquirer?
These questions could go on but are just a few to get your wheels turning. If you answered no to any of them, now is the time to step back and think about what’s needed to address the gaps. Use time as your friend in terms of building a solid team that will excite your future acquirer. You might be focused each day on the horse but make sure you are building the jockey as well.