Running your own shop is great, but no one does it forever. As an owner, you may have thought about selling your company. Perhaps you’re actively exploring the idea now. So how do you best prepare your business for sale, and what should you expect in the process?
Gabe Levine and Josh Barrett, Principals and Attorneys at Matchstick, join us to offer insights on mergers and acquisitions for digital agencies. Tune in to the webinar, and visit Gabe and Josh at matchstick.legal for more information and resources.
Start Early: Your Five- to 10-Year Plan
The #1 thing you’ll want to consider is starting early. The earlier you start thinking about selling your business, the more time you’ll have to get things optimally positioned for sale. Ideally, you’ll want to allow five to 10 years to get things ready for sale.
Key Components of a Good Exit Plan
There’s a lot of work to be done to get your house in order. A good exit plan has several key components that you’ll need to address while also running your business:
Team. You’ll want to assemble the right team of people working in your business, as well as a good CPA, lawyer(s) and perhaps a good insurance advisor.
Finances. Do your books right, get help from a proper CPA and start cleaning up your habits to drive maximum value.
Contracts. Having all of your contracts and documents in order will save you time and endless frustration during the due diligence process.
Want to get better at your business? Join us at an upcoming event.
The Transaction
So you’ve spent five to 10 years getting your house in order. Time to talk turkey.
LOI: The first step usually is the LOI, or letter of intent or terms sheet. It’s critically important to consult with your lawyers and perhaps your internal team and CPA to make sure that the LOI has all of the essential terms, and that they’re fair and spelled out in a way that you can understand.
The Deal Docs: If you’ve successfully navigated the LOI stage, then you’ll be getting into the deal documents. Thinking in advance about what is and isn’t important to you can help you make good decisions when the time comes.
Closing: After months of pain, frustration and expense, it’s time to close. But usually, you’re not done—not just yet. Gabe and Josh review what you’ll need to do before you celebrate.
Meet Gabe & Josh of Matchstick
Gabe Levine, Principal / Attorney at Matchstick
Prior to forming Matchstick with Josh, Gabe ran his own firm, Groundwork Legal, also focused on representation of the creators of digital products. Before Groundwork, Gabe worked as a partner and an associate at three different business-focused law firms in the Bay Area. Gabe has significant experience in both transactional and litigation matters, and prides himself on providing practical and efficient counsel.
Josh Barrett, Principal / Attorney at Matchstick
Prior to forming Matchstick, Josh advised creative agencies, studios and freelancers through his own firm, CreateLegal. Client-focused and detail-oriented, Josh is always looking for opportunities to help clients up their legal game.
This information is intended as a resource, not legal advice. Be sure to engage legal counsel for guidance on the sale of your business.