Ready to Sell: Small Business Divestment Tips for Serial Entrepreneurs

Here are a few pointers for the serial entrepreneur that is ready to sell and move on to the next adventure.

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Don’t Water-Down Value

Serial entrepreneurs have several very important characteristics that give them an edge over others, but there are crippling characteristics that can be wholly detrimental unless discipline is enforced. Chief among them is the desire to be everything to everyone, to lose focus on the original plan and to get off course. The struggle is that when entrepreneurs lose focus on today’s business, they decrease the value of the company.

It’s a sad truth of history that whenever a serial entrepreneur begins working to start a new company without first establishing or divesting in the first enterprise he/she becomes diluted in time, energy and monetary resources. This can ultimately lead to huge losses, especially if the company’s earnings are not maximized just prior to the sale of the business.

The take home: stay heads-down focused until the deal is done. When you’re riding off into the sunset, then you can take advantage of all the other ideas buzzing around in the head. Until then, be discipline and don’t dilute value by diluting your energies.

Connect Yourself and Plan Ahead

Business is personal. It’s about relationships. Everyone needs a tax planner, an attorney and a financial consultant. The serial entrepreneur needs his business broker, investment banker, fund partner and M&A specialist. Having a consultant in the back pocket provides the ability to act when timing is just right and to plan ahead most effectively.

Connections, planning discipline and focus—that’s what serial entrepreneurs are made of.

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Photo: Gant

Nate Nead is an Associate Director a DealCapital – a middle-market mergers & acquisitions advisory firm with offices throughout the country. The firm focuses on the merger and divestiture of middle market companies from both serial entrepreneurs and long-standing business executives.



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