The Seller’s Strategy
In the volatile world of merger and acquisitions, similar companies sell for dramatically different prices—most well below what they should have sold for and a few for a small fortune. Most sellers would love to squeeze every dollar out of their hard-earned investment, but they simply don’t know how—and they fail to hire those who can help.
No one takes notice when buyers hire top advisers to help them negotiate the best price for a deal, but sellers rarely take every legitimate action to maximize their sale price. Those with a Merger Mindset© do better. They set a target of selling their company for two times the EBITDA (earnings before interest, taxes, depreciation, and amortization) multiple of an average company in their industry.
At Henman Performance Group, we designed our sell-side process to help business owners develop a merger mindset—one that shapes resilience, recognizes that challenges aren’t permanent, talented people can figure things out, and even failure isn’t fatal. It allows sellers to learn from missteps and to move past them.
Our research shows that sellers who have the right beliefs, cognition, emotional reactions, motivation, and resilience fare better than those who lacked even one of the five.
Successful sellers first and foremost must demonstrate a willingness to kill their sacred cows. Then, they also need to have a bias for action, the right buyer, the right price, and a strong workforce. We can help
