A few of the questions others frequently ask via Twitter, Facebook, and email include:
- How did you sell your company?
- How did you attract a public company as a buyer?
- How can I sell mine?
Well, for all you fellow curious entrepreneurs, the next few posts are for you.
Some Background
In 1989 after practicing law for a few years, I founded a legal search and consulting company, The Esquire Group. A public company (MPS Group, now Adecco/Special Counsel) acquired the company in 2006. They approached me; I was not looking to sell at that point. My company was on a major upswing. I had just published a book and I was feeling, well . . . on top of the world. That said, I knew I was going to sell someday, was not shy about sharing that bold idea with anyone that would listen, but I was thinking 5-10 years out. Then the phone rang. 
Even though I was not ready, I made myself listen. The rest, as they say, is history.
So how did I happen to create a successful, sellable company? Just luck? No. I was able to sell my business because one of our business strategies was to create marketable value.
Tips for Creating Marketable Value
- Ignore the Naysayers, but Acknowledge the “Nays.” Naysayers abound. If you are not careful, they can get in your head and stop you from achieving your dreams. Mine included a lot of really smart people including lawyers, clients, accountants, as well as ex-significant others and friends. Here’s what they sounded like:
“You have to be at least 20 million in revenues to get a serious buyer.”
“But YOU are your company; there’s nothing really to buy.”
Sound familiar? What do your naysayers sound like?
As much as I had to tune out the negativity, I also couldn’t ignore it. Their clamor is part of the marketplace. To make my company marketable, I had believe in myself and build a business strategy to address each “nay.”
- Build a “best-in-the-business TEAM.” A company’s value is more than a sum of its parts, but includes the glue that holds it all together and makes it hum.{Tweet this} Having started my business on a shoestring, hiring the right folks took me a very long time. Fellow entrepreneurs, take heart and be patient! It takes a long time to hire not only great people but to build a team of people who have each other’s backs and do the right thing.
- Create a standout brand based on customer service. Much is written these days about the power of branding. While we built a definitive brand, a brand without customer service is an empty suit. It ‘s just window dressing.{Tweet this} Our brand strategy did not involve an expensive logo, hiring a PR firm, or expensive consultants. In essence, customer service became an organic component of our brand.
- Live by your company core values. Please note I say Lived. When we were in a jam, had an employee challenge, or screwed up royally, we turned to our core values. We spent valuable time carefully and thoughtfully scripting them, and they did not sit in a drawer. Likewise, whatever you call it–your core values, mission, credo, guiding principles—is key to creating a sustainable and marketable brand. Consult them, ponder them, use them.
- Volunteer your time and expertise. We wrote trade and magazine articles, career tip sheets, employer tip sheets, spoke at national and local conventions, participated in round tables, joined committees, sat on boards. Time consuming? Absolutely. However, not only did we “pay it forward,” we established our reputation for expertise in the market.
- Sell the team, not you. Per usual, the acquiring company offered me a job. A lovely offer, but I just could not envision working for someone else after building a company. Therefore, at the outset, I created the expectation that if they wanted to acquire, the deal did not include me. I would get to walk out quickly after the deal (specifically, the next day!) People, including my legal team, were astounded because walking away was relatively unheard of in the acquisition world. I made it happen because I had a terrific team (see above), making it easy for me to compile a detailed portfolio on the team and demonstrate their competence and willingness to step up. Each member of the team was key to the acquisition. For a successful acquisition, you simply cannot make it about one person.{Tweet this}
To sum up–sure, we sold a service in demand, but lots of companies sell the same service. The differentiator? Our team and our reputation for customer support, principled, consistent service, and expertise.
In my next post, I will discuss another key to selling your business—making it visible to buyers.
In the meantime, I want to hear from you. Are you looking to sell your company? Have questions? Have you sold a company? Have tips?
Please comment below or message me privately.
Remember…You’re Never Stuck! #YNS
With Love,
Patty Comeford Adams
