Selling Your Private Company

Canadian Institute of Chartered Accountants, 2005
Howard E. Johnson
MBA, FCMA, CA, CBV, CPA, CFA, ASA

Selling Your Private Company provides straightforward, practical guidance about the complex and daunting process of selling a privately held Canadian company.  Central to this book is the Value Enhancement FrameworkTM, which illustrates what business owners can do at each stage of the private company sale process in order to maximize the value they ultimately realize.  Selling Your Private Company helps Canadian business owners to answer important questions such as:

  • When is a good time to sell my company?
  • How should I prepare for the sale?
  • What is my company worth?
  • Who are the most likely buyers?
  • What information about my company should I provide to buyers?
  • Should I sell the shares or the net assets of my company?
  • What negotiating strategies should I use to get the best deal?
  • How do I ensure that the transaction proceeds smoothly?
  • And many more.

Shareholder Value Enhancement for Canadian Business Owners.
Value enhancement is more than just a set of isolated initiatives.  It represents a fundamental business philosophy.  Importantly, many of the value enhancement initiatives contained in Selling Your Private Company can be carried out independent of the sale process. Whether the sale of the business is imminent or years into the future, this book offers important insights for enhancing shareholder value and enabling business owners to prepare in advance should an unsolicited offer materialize or should there be a sudden change in personal circumstances that accelerates the sale of their company.

Shareholder value enhancement involves more than just increasing the purchase price for a company.  The economic terms of the deal, including when, how and under what conditions payment is made, have a significant impact on value.  In addition, the intangible aspects of the deal must be considered, as these things impact the owner’s feeling of self-fulfillment.  When a transaction is completed the business owner must be satisfied that it has been done on the best terms possible and that they have achieved their personal and financial goals.  Selling Your Private Company is designed to help Canadian business owners realize their goals.

Overview of Contents

  • The Private Company Sale Process
  • A Framework for Value Enhancement
  • Deciding When to Sell
  • Preparing for the Sale
  • Estimating Value and Price
  • The Search for Buyers
  • Preliminary Due Diligence
  • Structuring the Deal
  • Negotiations
  • Closing
  • Value Enhancement Planning and Execution