Do you write a blog, speak at events, Tweet or publish a newsletter to position your company as a leader in your industry? Have you ever considered writing a book to add to your profile?

I wrote my first book back in 2002 to help get Warrillow & Co on the map. I sent prospects a book and they gave me a warmer reception. I’m pretty sure we would not have landed Apple or American Express as customers without my first book as a credibility booster. Having a book also helped with existing customers who paid more attention to what I had to say. Employees and new recruits were also impressed.

The downside of writing a book – or any sort of marketing where you’re the front person – is how closely it ties you to your business; which is what Chris Brogan, the co-author of Trust Agents, found. Trust Agents became a New York Times Bestseller last year and Brogan had offers from people who wanted to buy his digital marketing agency, New Marketing Labs, but all were contingent on him personally sticking around for an earn out. (Read my interview with Brogan to get his perspective on building a sellable company and the perils of being the spokesperson for your business).

This week I also got a call from a brand name author (you’d know his name if I told you) who is looking for some help to turn his business into something sellable. He has written a number of bestselling books, which helped him to create a thriving speaking, education and events business, but it is too dependent on him personally. We’ve agreed to a barter deal where he is going to help me as a newer author and I’m going to help him turn his business into something more sellable.

I think your decision to write a book comes down to one of timing. If you are planning to sell your company in the next 5 years, I think writing a book will tie you to your business too much and may do more harm than good. If your time horizon is longer for getting out, then a book can solidify your credibility, garner respect from prospects and customers and accelerate your growth. I wrote about picking a format for your business book this week.

Do you have a book in you?

(photo courtesy of Flickr/Horia Varlan)

If you have ever pried open something by jamming a piece of wood in one end and applying pressure to the other, you know that leverage can give you more power than usual.

When you’re preparing your business to be sold, assuming you have an attractive asset, you have lots of negotiating leverage. You’ll be courted and discussions will build to a crescendo punctuated by a Letter Of Intent (LOI) presented by a buyer(s).

Your LOI(s) will likely have a “no shop clause” which means, provided you accept it, you must stop negotiating with other buyers. This exclusivity arrangement is the M&A equivalent of getting engaged — you’re not married yet, but you need to act like it.

The moment you sign an LOI, the stick slips out of the crack. The buyer knows you’re committed, but weaker than before and they may use that to their advantage. This would be ok if your fiancée were acting in good faith. Some do, but others don’t. I spoke to a corporate lawyer a while ago and asked him what percentage of the time a deal gets discounted between LOI and closing day. His response: “is there a number higher than 100%?”

The problem is that some professional buyers (strategic acquirers, sophisticated financial buyers) use an LOI to kick your stick out of the crack on purpose. Knowing you’re weakened, they start to change the terms of the deal in their favor: a longer earn out, a bigger escrow, less attractive employment agreement, lower upfront payment — I’ve heard them all.

Last week I spoke to Peter Lehrman, the CEO of AxialMarket which is an online marketplace for businesses for sale. Lehrman offered seven strategies for keeping your stick wedged in the crack after you sign an LOI. You can read his advice in the first two articles I wrote on selling a business below.

(photo courtesy of Flickr/ Neilwill)

Protecting your company’s value during a sale

~ published November 9, 2010 Globe and Mail

If you have ever promised your child a treat in return for good behaviour, you know all about negotiating leverage.

When selling an attractive business, you also have leverage—up to the point that you sign a letter of intent (LOI), which almost always includes a “no shop” clause, forcing you to terminate discussions with other potential buyers while your newfound “fiancé” does due diligence before handing over the cheque. »more

Don’t let lengthy negotiations depreciate your business

~ published November 10, 2010 Globe and Mail

I once asked a corporate lawyer – a veteran of hundreds of company sales – what percentage of the time the sale price of a company gets discounted between when the buyer and seller sign a letter of intent (LOI), and when the deal actually closes .

The lawyer looked at me thoughtfully and, after a moment of reflection, asked, “Is there a number higher than 100 per cent?” »more

The suit who thinks your baby is ugly

~ published November 11, 2010 Globe and Mail

Corporate development executives – the big-company suits responsible for buying businesses on behalf of their CEOs – often resemble heart surgeons: you know they’re smart, but their bedside manner leaves something to be desired.

This, of course, becomes a problem when you’re trying to sell your company and the guy or gal on the other side of the table is getting under your skin. Your business is your baby. You gave birth to it, you cared for it when it was young and fragile, and now that it is all grown up, you love it – warts and all. »more

9 Ways to Make Your Company More Valuable in 2011

~ published November 11, 2010 BNET

As you plan for next year, I’m sure you have a set of goals for your revenue and profit in 2011. Have you also got a list of projects that will drive up the value of your company?

Most businesses are valued on a multiple of earnings, so your profits are one key factor in driving up the value of your company, but the other number in the equation is the multiple of your earnings used to arrive at a price.  The more predictable and exciting your business, the higher a multiple you’ll get. »more

The other day I interviewed Pamela Slim, the author of Escape Cubicle Nation, about how to build a company you can sell. One of Pam’s recommendations was to write a “life plan”. I know it sounds cheesy but the more she described the process, the more curious I became.

After my call with Pam, she emailed and said “Have you written your life plan yet?”  Her email really made me think. I dropped out of The Strategic Coach when we moved to France earlier this year, so it has been about six months since I had thought about the “why” in what I do.

I cracked open my MacBook and starting a stream of consciousness memo on how I wanted to see my life unfold over the next few years. Now I look at the plan most mornings and it helps me prioritize my day.

Since writing my plan, I’ve signed up for the Aix-en-Provence 70.3 Half Ironman race coming here September 2011, carved out more time for writing and turned down two advisory roles which could have been lucrative but “off plan”. I’ve enrolled in twice weekly French lessons and have organized a babysitter for a regular Tuesday night date with my wife.

If you’re considering selling your business one day, I think writing a life plan would be a worthwhile exercise to figure out when and how to go about it.

You can read more about Pam’s life plan ingredients in the first of the four articles below on building a sellable company.

(photo courtesy of Escape from Cubicle Nation)

Pamela Slim’s checklist for a fulfilling life

~ published November 2, 2010 Globe and Mail

Fed up with their corporate jobs, a lot of people start businesses for the promise of a better quality of life. But many new owners find themselves trading time for money as self-employed consultants beholden to customers instead of bosses, with no more control over their time.

If you feel stuck in a rut, it could be because your life as an entrepreneur is not measuring up to what you’d hoped it would be. »more

‘Mr. Fix-It’ revives Buffett’s weak firms

~ published November 3, 2010 Globe and Mail

For many business owners, it is annual planning time. A lot of us are in the midst of developing a set of revenue and profit goals for 2011, but, at least according to one executive, you may be better off de-emphasizing annual goals in favour of a 90-day action list and a 10-year business plan, and just ignoring what’s in the middle.

David Sokol has been described as Warren Buffett’s “Mr. Fix-It” because he is often brought in to help revive struggling businesses Berkshire Hathaway has acquired. Mr. Sokol used a 90-day action list coupled with »more

Are you offering your customers the whole egg?

~ published November 3, 2010 Globe and Mail

With sky-high cholesterol, I have taken to eating egg-white omelettes. I long for the days of tender yellow omelettes made with both the yolk and the egg white, but for now, I’m relegated to just the soggy whites.

As business owners, we may choose to sell a service or a product, but I think the most valuable businesses »more

What Would Warren Buffett Find If He Bought Your Company?

~ published November 4, 2010 BNET

When Warren Buffett asked David Sokol to take over NetJets from founder Richard Santulli, Sokol discovered Santulli had built a bloated, dysfunctional management team.

“When [Santulli] started to disagree with his chief financial officer, instead of dealing with it head on, he hired a chief financial adviser — they hated each other,” Sokol said describing the dynamic between NetJets’ competing »more