The importance of business as usual during a sale
When we sold our agency, Bluhalo, the first quarter after the transaction was terrible!
A valuable lesson we learnt, not only from our experience of buying and selling many agencies at Cactus, but also first hand having been through a transaction ourselves, is that maintaining a BAU (business as usual) stance is critical when going through the process of selling your agency.
The four most common areas to give focus to during any transaction are:
Revenue Continuity: It's important to continue focusing on your core business operations and revenue generation during the sale process. Potential buyers are not only interested in your agency's past performance but also its current and future income potential. If your agency's revenue starts to decline or stagnate during the sale process, it can raise concerns for potential buyers and affect your agency's valuation and may even jeopardise the transaction.
Recruitment Planning: As part of the sale process, you should consider your agency's staffing needs both before and after the sale. If your agency is projected to grow post-sale, you may need to recruit additional staff to handle increased demand or new business opportunities. Failing to plan for these staffing needs can impact your agency's ability to meet future targets and may create challenges during the transition period after the sale.
Maintaining Client Relationships: Continuously nurturing and maintaining your client relationships is crucial. Clients should feel confident that their business will not be disrupted by the sale and that they will continue to receive the same level of service they have come to expect. Retaining clients during and after the sale is essential for preserving the agency's value. Towards the end of the process, your clients may likely get anonymously surveyed by your purchaser to validate your service levels and relationships.
Risk Mitigation: Disruptions or uncertainties during the sale process can introduce risks to your agency's stability. By keeping your business operations running smoothly, you minimise the risk of client attrition, employee morale issues, or other problems that could negatively impact the sale.
In summary, maintaining "business as usual" during the sale process ensures that your agency remains attractive to potential buyers and continues to perform well. It allows you to meet revenue targets, plan for future staffing needs, retain clients, and mitigate risks, ultimately maximising the value of your agency in the eyes of buyers.
