Bohemia, NY (PRWEB) August 22, 2013
On August 22, Lawrence Teicher, founder of CFO Consulting Services, LLC, a leading part-time CFO services company, comments on an article published by INC.com, which discusses how to prepare a business to sell when the time comes.
According to the July 25th article published on INC.com titled “Smartest Way to Manage Your Business? Get Ready to Sell It,” there are several tips to help business owners bring their company up to par and make it fit to sell should a need arise in the future.
By making a company fit to sell, owners are ensuring that they develop the people, processes and product lines required to increase ongoing value for the current owner and prospective buyer. The idea is to constantly improve the value of the business even if there isn’t any current plans to sell. By managing their business with constant attention to value creation, owners will have no problems in the future if the time does come to sell the company.
Lawrence Teicher, founder of CFO Consulting Services, a leading part-time CFO services company, says no one ever wants to have to sell their company, but it’s important to think and act far in advance to increase its value. “Most people realize this too late,” Teicher explains. “They start fixing up their company when they’re about to sell. Had they done this sooner, they probably wouldn’t need to sell their company. I fully agree that readying your company for a sale is the best way to prepare it for longevity.”
The article brings up several important questions business owners should ask themselves in order to make their business successful today and a solid buy in the future:
- How much does the business rely on personal leadership to function efficiently?
- How stable is the current income and what can business owners do to demonstrate that revenue won’t vanish overnight? Teicher says, “Prospective buyers are willing to pay a premium for a predictable earnings stream. This also makes the current owners sleep better at night.”
- Is the staff homegrown? Have the business owners developed and incentivized them in a way that best aligns their interests with those of the business?
- What does the business bring to the marketplace that distinguishes it favorably from the competition? Is the business investing sufficiently and appropriately to improve its competitive position and service levels?
While it might take years, Teicher agrees that addressing these questions can help prepare a business for sale and help them build what he calls a ‘sustainable long term advantage.’ “It’s critically important to continually assess your business’ strengths and weaknesses and to devote the resources required to strengthen all aspects of your business.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.