We often hear business owners say, “I don’t need to think about an exit strategy because I’m not going to sell my business anyway.” But they do.
And here’s why: Your potential acquirer’s due diligence is the perfect way to organize your files.
What kind of documents would you want to see if you were buying a business? Certainly, you’d want to make sure you didn’t get sued by any undisclosed or unsettled disputes.
You’d want to know that you wouldn’t be closed down because you didn’t have the correct licenses and permits, or that they weren’t up-to-date. You’d want to protect yourself from buyers who might claim better pricing and terms from the former owner.
What kind of records would you want to see? How about the monthly and annual sales history from the beginning? How about the chart of accounts? How about the individual sales history for every customer? How about any and all sales contracts and agreements, formal or in correspondence? And how about all of their personnel records and all their vendor and supplier contracts just to name a few? You must protect yourself.
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Who We Are
Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.
Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.
They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.
Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.
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