23-Nov-23 12:00

Raymond Chou, Co-founder, Infront Consulting Group

What should founders know before, during, and after selling their business?

In this episode of Enterprise Biz Bytes, we deep dive into considerations founders should make before, during, and after selling their businesses with Raymond Chou, an entrepreneur that has sold 2 of his businesses in the past. He is Co-founder of Infront Consulting Group and Business Growth Specialist with Owners Circle Asia, and is the Past President of the Entrepreneurs' Organization (EO).

We delve into optimum times for selling, how the valuation of the deal is determined, the negotiation process itself, legal preparations, and the emotional toll involved in the process. Raymond shares valuable insights from his own experiences of selling multiple businesses and also discusses the importance of knowing your buyer, considering the potential acquirers' alignments with the selling company's vision, goals, and values, and why founders should document everything during negotiations.

00:20 Recent Market Movements and Acquisitions

00:52 Recent Tech Acquisitions

02:52 Interview begins with Raymond Chou

03:25 Deciding When to Sell a Business

05:10 Reasons for Selling a Profitable Business

11:00 Emotional Aspects of Selling a Business

12:35 Navigating the M&A Process

16:00 Understanding Business Valuation in M&A

19:20 The Importance of Not Being Desperate During Negotiations

19:57 The Role of Potential Growth in Business Valuation

22:10 Assessing Potential Acquirers: Red Flags and Compatibility

29:00 The Importance of Legal Preparations in Business Sales

32:45 Protecting Employees During Business Sales

37:30 The Psychological Shift from Founder to Employee Post Acquisition