Business staging, a solution to better sell your business

Posted on April 19, 2017, 06:31

Home staging, you know? For a decade, “home staging”—a cheap appraisal of a property to sell it better—has become widespread. Professionals do not only communicate about the advantages of the method: less strict price negotiations and shorter sales times. And the “business staging”, which the large groups practice without calling it that when it comes to selling an activity and “beautifying the bride”, can it facilitate the sale of an SME in question? Isabelle Saladin, who develops the concept in France, is convinced of this. For those who define the approach more broadly as ” the operational structuring of the company before a strategic shift”, however, it’s helpful for the owner-manager to ask the right questions before starting.

1. Is your desire to sell real?

There must be a real work of reflection before starting the command operation», Indicates the consultant, stating « spend hours cleaning up the floor What does the entrepreneur really want? The questioning may seem simple, but Isabelle Saladin trusts that it took three meetings with a client to determine that the boss had no intention of selling his company if he was really tired of his activity.” A business leader who wants to engage in ‘business staging’ to get growth off the ground or bring about innovation does not have the same approach to the process. explains advisor Isabelle Saladin. In the assignment there is a third person who comes in, that changes everything. And it’s not the same timing“It is in particular by starting from the goal that the consultant works, when the income statement is not enough to make the eyes of the buyers shine _ and this is of course often the case in this type of situation.” We start from the idea that the company has an asset, that the entrepreneur has created something“. It remains to align it with the interests of the target.

2. Do you agree to contribute to the life of your company for another year?

Answer the questions “What can a buyer do with my structure?” True “How can he make money from the company in three years?† and implementing the necessary steps to make your business “desirable” means agreeing to invest another 11 months in it, the average length of a good “business staging”. During this period it will be necessary to structure the company and establish performance indicators. Isabelle Saladin cites the case of this SSII with several legal entities and offices, in Asia and France, created on the basis of customer contract possibilities. †Each of the entities works with its own tools, its own rules, its own services. This results in productivity loss and cost increase», then notes the person who guided the consolidation of the company’s processes and tools. †We also found that of the three product lines (software, editors note) that were developed and brought to market, two were no longer making money and likely never would because they were based on needs and markets (in the trade), before the crisis“, she explains.

3. Are you ready to develop your teams’ skills?

In the case of the SSII, aided by Isabelle Saladin, about twenty people worked on the two unprofitable product lines… Should we think about layoffs? †Staging is not restructuring but structuringemphasizes the advisor.The idea was how to optimize the employment of these twenty people while others were overwhelmed by software that worked very well and would become the mainstay of the company.“. The SME for sale had developed together with its employees. “They had climbed more in affect than in their real skills‘, the consultant slips. Some were makeshift managers and others were placed in _non-technical_ positions where they didn’t excel. The only decision to make was to develop the teams’ skills and dive into a training budget, which has always remained intact.

Squared, the SSII is now being sold to an Asian fund. With business staging, the messy company has positioned itself as a niche software vendor. †And she was able to sell development potential with the teams in attendance“, the consultant welcomes. Especially because during the eleven months of “working”, the margin increased and the result went up…

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