Selling for Parts
“Calvin Johnson owned an office supply company that he grew to more than $7M in revenue. When he sold he decided to carve out two divisions and sold them separately. You’ll hear excellent advice on preparing the division sale separation, protecting yourself in negotiations and the benefits of either an asset or stock sale,” shares Sam Thompson a Twin Cities business broker and the president of M&A firm Transitions In Business.
Calvin Johnson built Lykki, an office supply company, to more than $7 million in annual revenue.
Johnson had two divisions, one had office kitchen supplies (e.g. coffee) and the other sold office supplies. The kitchen supplies business was more attractive to acquirers than the office supplies side, so Johnson decided to separate the divisions and sell them separately.
In this episode, you’ll discover how to:
- Carve out part of your business for sale.
- Decide when launching a new product or division will increase your valuation (or detract from it).
- Promote a happier workforce.
- Protect yourself in a negotiation with an acquirer.
- Evaluate the pros and cons between a share and asset sale.
- Argue an acquirer should use your pre-pandemic numbers as the basis of their valuation.