Michael Levison

Navigating Employee Consideration In A Business Sale

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When considering selling a company, owners tend to concentrate on the valuation, financials, and the arrangement. But an extremely complicated and emotional aspect of selling a business is its effect on the employees. An unplanned and poorly managed transition could result in uncertainty, decreased productivity, and even significant employees leaving the company, and all of these factors will ultimately diminish the value of your business. When you’re considering an all-out departure or making a slow transition, the way you manage employees’ issues will affect not only the selling process but also the company’s long-term performance under the new owners. In this piece I’ll provide insight through my own experience on four important employee concerns that impact immediate effects as well as future perspectives, as well as a communication strategy and retention strategies. The immediate impact: Preventing Disruptions before They Even Begin The mere idea of a sale of a business could cause anxiety for employees. If not handled strategically, speculation can lead to disengagement, reduced morale, and even voluntary departures—potentially weakening the business at a critical juncture. Essential Questions to Think About: Information: Take a proactive method of communication that is phased. Employees who are key to the company and whose departure could impact operations. They should be informed in advance in order to allow them to prepare for the announcement and also help in managing the announcement. The message should concentrate on business continuity, promoting stability and recognizing potential changes. Future Perspectives: Helping Team Members Navigate Transition Beyond the initial response, your employees will be concerned about their future prospects with the new management. Insecurity about their job as well as changes in leadership and corporate culture may cause key or talented team members to search for new possibilities. The Most Important Questions to Ask: Insights: You should evaluate potential buyers not only on the basis of financials but also on their capacity to maintain or improve the culture of your company, which you have created. If a buyer has a track record of high turnover after acquisition, it could be a sign of trouble for retention. When negotiating, it’s an excellent idea to discuss strategies for integrating employees and, if it’s feasible, getting commitments on retention. Strategies for Communication: Keeping Stability and Trust Employees don’t just need details; they require certainty. Without a clearly defined communication strategy, rumors and doubts are likely to spread, affecting the morale of employees and reducing productivity. Essential Questions to Think About: Information: One announcement isn’t enough. You should think about developing a messaging strategy that does more than reassure employees but also sets realistic expectations. Transparency, and not sharing too many details, is essential. Making regular updates at key moments in the transaction could help to avoid misinformation and increase the trust. Retention Strategy Planning The goal is to align Retention Strategies with Business Value The Management of Employee Considerations the context of a business sale One of the biggest dangers of a business sale involves the departure of important employees. Customers value continuity, and the departure of top talent is likely to lower the value of the company and complicate the process of transition. Strategies for retention that are both cultural and financial are crucial in ensuring stability. The Most Important Questions to Ask: Insights: While financial incentives like retention bonuses may be beneficial, they must be supplemented by cultural rewards. Recognizing employees’ contributions with celebrations, recognition programs, or opportunities for career advancement strengthens the loyalty and commitment of employees. Managing employee concerns using strategic thinking and foresight isn’t just a moral obligation; it’s also a crucial business requirement. A well-planned transition doesn’t just preserve morale but also ensures its value to the business, helping ensure that the business remains viable throughout the entire sale. If you’re contemplating an exit and wish to make sure the plan of succession strategy is geared towards retention of employees as well as business continuity, you can count on a seasoned M&A advisor to discuss the most effective practices based on previous experiences. For more information on how VAP l Raincatcher can assist, please drop a note to mike.levison@raincatcher.com.

Navigating Employee Considerations in a Business Sale

Navigating Employee Considerations in a Business Sale

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When selling a business, numbers matter….but people matter just as much. Your employees are not just part of the operation; they are the foundation of its value. Mishandling the transition can lead to uncertainty, disengagement, and even key departures, all of which can weaken financial performance and reduce the business’s attractiveness to buyers. A well-structured employee strategy isn’t just about maintaining morale; it’s a critical factor in preserving business continuity, ensuring a smooth transition, and ultimately protecting business valuation. Buyers pay a premium for stability, and a workforce that remains engaged and productive through the sale process is a key indicator of a well-run business. This article examines the four most important employee considerations: (1) immediate impact (2) future prospects (3)communication strategy, and (4) retention planning to help you navigate this critical issue. Note:  This is the fourth part of an eight part series that addresses the key questions that you, as a business owner, need to really focus on as you begin to think about the sale of your business.  This series will give you actionable insights on assessing your readiness to sell, what you need to do to be prepared for the process and what real success will look like post sale.  Happy reading! When planning to sell a business, owners typically focus on financials, valuation, and deal structure. However, one of the most complex and emotionally charged aspects of the sale is its impact on employees. A mismanaged transition can lead to uncertainty, diminished productivity, and even key personnel departures— all factors that can ultimately erode business value. Whether you’re preparing for a full exit or a gradual transition, how you handle employee-related issues will influence not only the sale process but also the business’s long-term success under new ownership. In this article, I will offer insight, based on my personal experience, on four critical employee considerations: immediate impact, future prospects, communication strategy, and retention planning. The Immediate Impact: Preventing Disruptions Before They Start The mere prospect of a business sale can create anxiety among employees. If not handled strategically, speculation can lead to disengagement, reduced morale, and even voluntary departures—potentially weakening the business at a critical juncture. Key Questions to Consider: Insight: Take a proactive, phased approach to communication. Key employee, those whose departure could disrupt operations. should be informed first, allowing them to prepare for the broader announcement and to assist in managing the message. The messaging should focus on business continuity, reinforcing stability while acknowledging potential changes. Future Prospects: Helping The Team To Navigate The Transistion Beyond the initial reaction, your employees will be concerned about their long-term prospects under new ownership. Uncertainty about job security, leadership changes, and company culture can prompt key/talented team members to seek other opportunities. Key Questions to Consider: Insight: You should evaluate potential buyers not just on financial terms, but also on their ability to sustain or enhance the company’s culture that you established. A buyer with a history of high turnover post-acquisition may signal trouble for employee retention. During negotiations, it’s a good idea to discuss employee integration strategies and, where possible, securing commitments regarding retention. Communication Strategy: Maintaining Trust and Stability Employees don’t just want information, they want clarity. In the absence of a well-defined communication strategy, rumors and uncertainty can spread, damaging morale and productivity. Key Questions to Consider: Insight: A single announcement is not enough. Consider crafting a messaging strategy that not only reassures employees but also sets realistic expectations. Transparency, without oversharing premature detail, is key. Creating structured updates at critical points in the transaction can prevent misinformation and reinforce confidence. Retention Planning: Aligning Retention Strategies with Business Valuation One of the greatest risks in a business sale is the loss of key employees. Buyers value continuity, and an exodus of top talent will likely reduce valuation and complicate the transition. Retention strategies, both financial and cultural, play an important role in maintaining stability. Key Questions to Consider: Insight: While financial incentives such as retention bonuses can be effective, they should be complemented by cultural reinforcements. Acknowledging employees’ contributions through celebrations, recognition programs, or career development opportunities strengthen loyalty and commitment as well. Handling employee considerations with foresight and strategy isn’t just an ethical responsibility, it’s a business imperative. A well-managed transition not only preserves morale but also safeguards business value, helping to ensure the company remains strong through and beyond the sale. If you are contemplating an exit and want to ensure that your succession planning strategy accounts for employee retention and business continuity, rely on an experienced M&A advisor to share best practices based on past experience.  For more information on how VAP l Raincatcher can assist, please drop a note to mike.levison@raincatcher.com.

Life After the Sale: How to Avoid Seller’s Remorse and Plan for What’s Next

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In the episode, Mike Levison, founder of Value Acceleration Partners, explores crucial aspects of selling a business. He discusses the need for personal and professional goals alignment for the seller, contemplating activities, hobbies, and life changes that were sidelined due to business. Mike also considers the role of the seller post-sale, whether remaining attached to the business in a non-operational role or embarking on a new venture. He stresses the importance of understanding financial needs and planning for the sales proceed utilization, considering lifestyle, retirement, or funding for new ventures. He advises about leaving a legacy through charitable bequests. Lastly, Mike offers guidance on preparing for the transition from active business life to a more composed environment, maintaining productivity, and overall well-being. He concludes with the notion of structuring the sale conducive to personal vision, advising the calculation of a Freedom Score to outline future financial readiness.

The Key Questions to Answer Before Selling Your Business

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In the podcast episode, Mike Levison, founder of Value Acceleration Partners, explores the concept of readiness to sell a business, emphasizing that it’s more than a financial undertaking but also a significant turning point in a business owner’s life. He breaks down readiness into three main areas: mental preparedness which includes examining emotional resilience and readiness for change, financial preparedness requiring a deep understanding of the business’s financial health and its market worth, and timing, which considers market and industry trends as well as personal and professional goals. Stressing the importance of having trusted advisors, financial transparency, and strategic timing, Levison ends by offering assistance with preparedness through Growth Acceleration Partners, hinting at their PreScore report which evaluates readiness to exit business.

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Before Your Sell: Crafting Your Post Sale Vision

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Note:  This is the second part of an eight part series that addresses the key questions that you, as a business owner, need to really focus on as you begin to think about the sale of your business.  This series will give you actionable insights on assessing your readiness to sell, what you need to do to be prepared for the process and what real success will look like post sale.  Happy reading! Selling your business is one of the most significant decisions you will make—one that impacts not only your financial future but also your personal and professional identity. Surprisingly, many business owners experience seller’s remorse after the sale. According to the Exit Planning Institute, 75% of business owners profoundly regret selling their businesses within a year. This statistic highlights the importance of crafting a clear and thoughtful vision for life after the sale. A well-defined post-sale vision ensures that every decision made during the transaction process aligns with your long-term goals, helping you avoid regret and transition successfully. As experienced business advisors, we’ve guided countless business owners through this journey. Below, we outline four key areas to focus on when envisioning life after the sale, along with questions and insights to help you navigate each step. Personal Goals: Finding Fulfillment Beyond the Business For many, a business is more than a source of income—it’s a core part of their identity. Without a clear plan for personal fulfillment, the transition can feel disorienting. Understanding what excites and motivates you beyond the business is the first step in crafting a fulfilling post-sale lifestyle. Key Questions to Consider: By addressing these questions, you ensure that your decision to sell supports a life of purpose and satisfaction. Professional Ambitions: Defining Your Role in the Next Chapter Selling your business doesn’t mean stepping away from work entirely. Some business owners find purpose in staying connected to their industry, while others are eager to explore new ventures or entirely different paths. Key Questions to Consider: Your answers to these questions can guide your business broker and advisors to structure a sale that accommodates your professional aspirations. Financial Considerations: Building a Strategy for Long-Term Security The proceeds from selling your business are not just a payday—they represent the foundation of your financial future. Proper planning ensures these resources align with your personal and professional goals. Key Questions to Consider: Engaging with a business advisor early ensures you approach these financial considerations with clarity and confidence. Transition and Downtime: Preparing for Life After the Sale Transitioning from a fast-paced entrepreneurial lifestyle to something slower can be challenging. Many former business owners struggle with the lack of structure and purpose they once had. Preparing emotionally and practically for this shift is vital. Key Questions to Consider: Having a plan for this downtime can help you embrace the change rather than feel adrift. Your Vision Defines Your Outcome Selling a business is more than a financial transaction—it’s a pivotal life event. Success isn’t just about the sale price or terms but about how well the outcome aligns with your personal goals, professional aspirations, and financial needs. Take the time to consider these questions deeply. The clarity you gain will guide your business broker and advisors to structure the sale in a way that supports your unique vision for the future. To further ensure your financial readiness, consider calculating your Freedom Score. This comprehensive assessment will give you insight into how much you need to net from the sale to fund the next phase of your life. Get My Freedom Score Take our free assessment to discover your freedom point. Once you’re done, you’ll receive your Freedom Score Report, a comprehensive analysis of your financial readiness to enter the next phase of your life.

Before You Sell: Writing the post Sale Vision

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Selling your business can be one of the most important decisions you’ll ever make. It affects not just your financial security but your professional and personal identity. It’s surprising that many business owners suffer from the seller’s remorse following the sale. Based on the Exit Planning Institute, 75 percent of business owners deeply regret selling their businesses after an entire year. This number highlights the importance of creating an enlightened and clear idea of what to do following the sale. A clearly defined post-sale plan ensures that each decision you make during the transaction process is in line with your long-term objectives and helps you avoid regret and make the transition efficiently. As seasoned business advisors, we’ve aided numerous business owners through this process. Here, we’ll outline the four main areas to concentrate on when you think about the future of your business following the sale, with additional questions and suggestions to guide you through every step. Individual Goals Getting satisfaction beyond the business For many, running an enterprise is not just a source of income. It’s an integral element of their persona. If you don’t have a plan to achieve your own fulfillment, the change may be difficult to navigate. Knowing what drives and excites you beyond your company is the very first stage to making a successful post-sales lifestyle. The Most Important Questions to Ask: By answering these questions you can ensure that your decision to sell will lead to the pursuit of a goal and fulfillment. Professional Ambitions: Defining Your Role in the Next Chapter Selling your business shouldn’t necessarily mean you have to quit your job completely. Certain business owners find meaning in remaining connected to their business, whereas others are keen to investigate new opportunities or completely new avenues. The Most Important Questions to Ask: The answers you provide to these questions could help your advisors and business broker to design a deal that meets your professional ambitions. Financial Considerations: Building a Strategy for Long-Term Security The earnings from selling your company do not simply pay for a payday, they are the basis for your future financial security. A well-planned approach ensures that these funds are in line with your professional and personal objectives. Essential Questions to Think About: Talking to a business consultant early will ensure that you can tackle these financial decisions with clarity and confidence. Transition and Downtime: Preparing for Life After the Sale The transition from a high-speed entrepreneurial life to one that is more sluggish isn’t easy. Many business owners who have been in the past are struggling with their lack of organization and direction they had in the past. Being prepared emotionally and practically for this change is crucial. The Most Important Questions to Ask: Making a schedule for this time can assist you in embracing the change, rather than feeling lost. Your Vision Defines Your Outcome Selling a business is much more than just a transaction in the financial realm. It’s an essential, life-changing experience. It’s not just about the selling price or the terms, but rather how well the final outcome is aligned with your goals and career aspirations and financial requirements. Spend the time to think about these issues deeply. Your clarity will assist your advisors and broker to plan your sale in a manner that will help you achieve your own idea of the future. To ensure that you are financially prepared, you should consider the calculation of to determine your freedom score. This detailed test will give you an the information you’ll have to earn through the sale to finance the next stage that you will go through in the course of. Get My Freedom Score

Before You Sell The Art of Crafting your Vision for Post Sale Vision

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Selling your business can be one of the most important choices you’ll make. It will affect not only your financial situation but your professional and personal image. It’s surprising that many business owners suffer from seller’s remorse following the sale. Based on Exit Planning Institute Exit Planning Institute, 75 percent of business owners truly regret selling their businesses after an entire year. This number highlights the importance of establishing an enlightened and clear plan for the future following the sale. A clear post-sale strategy will ensure that every decision you make during the transaction process is in line with your goals for the future and helps you avoid regrets and transition efficiently. As seasoned business advisors, we’ve helped many business owners on this process. Below, we’ll discuss the four main areas to concentrate on when imagining the future after selling your business, along with additional questions and suggestions to guide you through every step. Your Personal Objectives Getting satisfaction beyond the business For many, company is much more than just a source of revenue. It’s a fundamental element of their persona. If you don’t have a plan to achieve your own fulfillment, the change may be difficult to navigate. Knowing what drives and excites you beyond your company is the very first stage towards making a successful post-sales lifestyle. The Most Important Questions to Ask: By answering these questions you will ensure that the decision to sell will lead to your goals and fulfillment. Professional Ambitions: Defining Your Role in the Next Chapter Selling your business does not necessarily mean you have to quit your job completely. Certain business owners find meaning by remaining in touch with their field, while others are keen to investigate new avenues or completely new avenues. Essential Questions to Think About: The answers you provide to these questions could help your advisors and business brokers plan a sale that is compatible with your professional goals. Financial Considerations: Building a Strategy for Long-Term Security The earnings from the sale of your business are more than just cash-flow, they are the basis to your finances’ future. With proper planning, these resources coincide with your professional and personal objectives. The Most Important Questions to Ask: Talking to a business consultant early will ensure that you can tackle these financial decisions with clarity and confidence. Transition and Downtime: Preparing for Life After the Sale Moving from a frantic entrepreneurial life to one that is more sluggish isn’t easy. Many business owners who have been in the past are struggling with an absence of direction and focus they had previously. Making preparations both emotionally and physically to transition is essential. Essential Questions to Think About: A plan for your downtime will make it easier to embrace the change instead of feeling lost. Your Vision Defines Your Outcome Selling a business is much more than just a transaction in the financial realm. It’s an essential life-changing experience. It’s not just about the cost or terms, but how well the result aligns with your goals and career aspirations and financial goals. Consider these questions in depth. Your clarity will assist your advisors and business broker to organize selling the business in a manner that is in line with your idea of the future. To ensure that you are financially preparedness, you should consider the calculation of to determine your freedom score. This detailed analysis will provide you with an insights into the amount you’ll have to earn from the sale in order to fund the next stage that you will go through in the course of. Get My Freedom Score

Before You Sell The Art of Crafting your post Sale Vision

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Selling your business can be one of the most important decisions you’ll ever make. It affects not just your financial situation but your professional and personal identity. Unexpectedly, a lot of business owners feel remorse for selling following the sale. Based on the Exit Planning Institute, 75 percent of business owners deeply regret selling their businesses after an entire year. This is a clear indication of the importance of establishing an enlightened and clear plan for the future following the sale. A clear post-sale strategy will ensure that every decision you make during the process of negotiating the sale is aligned with your long-term objectives to help you avoid regrets and transition efficiently. As seasoned business advisors, we’ve helped many business owners on this process. Here, we’ll outline four areas you should concentrate on when you think about the future of your business following the sale, with additional questions and suggestions to guide you through every step. Individual Goals Getting satisfaction beyond the business For many, enterprise is not just a source of income. It’s an integral element of their persona. If you don’t have a plan to achieve satisfaction for yourself, the shift could be a bit disorienting. Finding out what motivates and excites you beyond your company is the very first stage towards making a successful post-sales lifestyle. The Most Important Questions to Ask: If you answer these questions, you will ensure that the decision to sell will lead to the pursuit of a goal and fulfillment. Professional Ambitions: Defining Your Role in the Next Chapter Selling your business shouldn’t necessarily mean you have to quit your job completely. Many business owners find their purpose in remaining connected to their business, whereas others are keen to investigate new opportunities or completely new avenues. Essential Questions to Think About: The answers you provide to these questions will help your advisors and business broker to plan a sale that is compatible with your professional goals. Financial Considerations: Building a Strategy for Long-Term Security The profits from the sale of your business do not simply pay for a payday, they are the basis to your finances’ future. With proper planning, these resources are in line with your professional and personal objectives. The Most Important Questions to Ask: Consulting a business advisor early will ensure that you can tackle these financial decisions with clarity and confidence. Transition and Downtime: Preparing for Life After the Sale The transition from a high-speed entrepreneurial life to one that is more sluggish can be a challenge. Many business owners who have been in the past are struggling with their lack of organization and direction they had previously. Making preparations both emotionally and physically for this change is crucial. Essential Questions to Think About: A schedule for this time can make it easier to embrace the change, rather than feeling drifting. Your Vision Defines Your Outcome Selling a company is more than just a transaction in the financial realm. It’s an important, life-changing event. It’s not just about the price or the terms, but rather how well the result aligns with your goals and professional goals and financial requirements. Spend the time to think about these questions in depth. Your clarity will assist your advisors and business broker to plan your sale in a manner that will help you achieve your own concept of what the future holds for you. To increase your financial preparedness, you should consider taking a look at the Independence Score. This detailed test will give you the information you’ll need to make from the sale in order to fund the next stage in your journey. Get my freedom score

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Part I: Before You Sell: The Questions Every Business Owner Should Answer

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Note:  This is the first part of an eight part series that addresses the key questions that you, as a business owner, need to really focus on as you begin to think about the sale of your business.  This series will give you actionable insights on assessing your readiness to sell, what you need to do to be prepared for the process and what real success will look like post sale.  Happy reading! Selling a business isn’t merely a financial transaction—it’s a transformative milestone that impacts every facet of a business owner’s life. For many, the company represents decades of hard work, personal sacrifice, and professional identity. Readiness to sell involves much more than timing or finding the right buyer. It’s a deliberate process of evaluating personal goals, financial strategies, and long-term objectives. In this post, I will delve into three key dimensions of readiness: mental preparedness, financial preparedness, and timing and long-term goals. By exploring these areas, you can ensure that your decision to sell is aligned with your broader aspirations and is executed with clarity and confidence. Mental Preparedness: Are You Ready to Let Go? Selling a business often means stepping away from a venture that has defined your professional life. It requires the emotional resilience to navigate challenges and the willingness to embrace a new phase of life. Perspective:The decision to sell is deeply personal. Many business owners underestimate the emotional weight of letting go, especially when the business is intertwined with their identity. It’s critical to define what “life after the sale” looks like for you. Are you looking for complete detachment, or would you prefer a phased transition? Additionally, the negotiation process can be fraught with challenges—unexpected setbacks, tough discussions with buyers, and difficult decisions. Emotional preparedness ensures you remain steady, even in the face of these pressures. Surround yourself with trusted advisors (i.e. business broker or M&A Advisor) who can offer perspective and support throughout the journey. Financial Preparedness: Building a Strong Foundation Financial readiness is about more than just understanding your company’s numbers—it’s about preparing your business to appeal to buyers and ensuring the sale aligns with your personal financial goals. Perspective:Buyers expect a business to be well-organized and financially transparent. Ensuring your records are accurate and comprehensive is a foundational step. Clean financials signal stability and trustworthiness to prospective buyers, while discrepancies can raise red flags.  Getting your financials in shape may require spending some additional money with professionals that can help, but it must be done. It’s also important to understand how the sale will affect your personal financial landscape. For example, will the proceeds meet your retirement or investment goals? Consulting with a financial advisor to explore different scenarios can help you make informed decisions and avoid surprises. Finally, knowing your business’s market value is essential. Even an informal valuation can help set realistic expectations and equip you with the confidence to negotiate effectively. Overvaluing or undervaluing your business can both have significant consequences. Timing and Long-Term Goals: Choosing the Right Moment Timing can make or break the success of a sale. It’s a balance between external conditions, such as market trends, and internal considerations, like your personal goals and operational readiness. Perspective:Selling at the right time often requires careful consideration of both market conditions and your personal circumstances. For instance, strong industry performance or high buyer demand can drive up valuation, making it a favorable moment to sell. Conversely, waiting too long can expose you to risks such as market downturns or operational challenges. Equally important is how selling aligns with your long-term objectives. Are you hoping to retire, reinvest in another venture, or focus on personal interests? Clarifying these goals will help you approach the decision with purpose. Delaying the sale might seem appealing if you anticipate future growth, but this comes with its own set of risks—economic changes, increased competition, or even burnout. Weighing these factors carefully will help you strike the right balance. Take A Holistic Approach to Readiness Readiness to sell is a multifaceted process that goes far beyond finding the right buyer. By reflecting on your mental preparedness, financial health, and timing, you can approach the sale with confidence and clarity, ensuring the outcome aligns with your broader goals. If you’re considering selling your business, we’re here to guide you through every step of the process. Contact us to start the conversation and take the first step toward a successful transition. To get more personal insight into the question of your readiness to sell, get your PreScore report.  The PreScore assessment is designed to help you evaluate your preparedness to exit your business and ensure you leave your company with no regrets. Get Your PreScore Report Exit your business with no regrets. Get your Personal Readiness to Exit Score today. Complete your free PreScore report here

Podcast: 2024 Year-End Special: The Insider’s Guide to Maximizing Your Exit

2024 Year-End Special: The Insider’s Guide to Maximizing Your Exit

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As we gear up for 2025, I wanted to highlight the top strategies covered this past year on Built to Sell Radio. These insights are designed to help you increase the value of your business and position yourself for a successful exit. In this episode, you’ll learn how to: • Avoid costly mistakes during negotiations that could cost you millions.• Design a subscription model to increase value.• Structure earn-outs so you actually get paid.• Push back against low-ball offers and negotiate better terms.• Navigate private equity deals, including equity rollovers and earn-outs.• Use a 3D negotiation framework to get the deal you want.• Provoke bidding wars to maximize your valuation.• Evaluate acquisition offers to ensure you walk away with the most cash.