Selling the Business

I began meeting with Roger about ten years after he opened a small industrial design practice. Initially, he articulated two goals -  expanding the business and developing a client list with greater prestige.  Roger and I met for three years, during which time we succeeded in:
 

• changing his market niche;
• growing the business by more than 100%;
• adding Apple Computer, Pacific Telephone and Hewlett Packard to his client list.

Having achieved all of his key objectives, Roger decided to sell. 

As we developed the selling strategy, among the key topics we discussed was the relative merit of hiring a business broker.  I suggested he engage one.  Both Roger’s attorney and accountant advised him to undertake the sale himself.   While this was credible advise, and advise I might well have given another client, good advice is about understanding the relative strengths and weaknesses of a particular client. Roger was not a salesman, so for him, this was an undesirable course.

Ultimately, Roger and I selected a broker whose strengths complimented his weaknesses. One who could manage both the sale and the details that would have bogged Roger down.  The eventual sale was highly successful, netting Roger over $1,000,000 (in 1994).

The conventional wisdom of avoiding a broker’s fee was not wrong.  It was just wrong for this owner.

Just as a single building is not suitable for all uses, all seemingly competent advice isn’t valid for all businesses.  Your advisor should recognize that good advise for one firm, may well be bad advise for another, and should possess the intuitive skill to counsel accordingly.