What We Can Learn from the Sprint T-Mobile Proposal
When big businesses sell or merge, it is all over the news. The good thing is that when you are preparing to sell your business, you can learn from these businesses and what they are doing, and often apply it to your own situation. One big merger in the news at the moment is the proposed sale of T-Mobile to Sprint, a merger that would not only form a company that would rival Verizon and AT&T in size, but also change the face of the cell phone industry.
Although your business might seem small in comparison, there are lessons to be learned for everyone looking to buy or sell a business from this large public sale.
The Third Time Might be the Charm
A similar proposal to this one was made in 2014. And again in 2016, both of which were either blocked by regulators or fell through for other reasons. Now it seems the two companies have reached an agreement that might work under the current political climate.
The point here is that the first time you try to sell your business, regardless of who you are trying to sell it to, it might not work for a number of reasons. Just because your timing is off does not mean the sale won’t ever work. Never be afraid to try again.
Your Customers Matter
When selling your business, the one thing you want to do is to make sure your customers are taken care of the best you can. Although you might be looking to get out of your business for whatever reason, your customers will still buy from or use the services of your new owner. You should be concerned with vetting that owner to make sure your customers continue to get the service and value they deserve.
The same is true in this case, and that is one of the things regulators look at: will this merger benefit customers by providing them with better service or value for their dollar? They look at the way this would change the landscape of competition, and so should you when selling your business. If you are selling to a large company, what impact will that have on competition and the overall community in your area? Be sure your business sale will help the consumer and the local economy, not hurt it.
Investors Have a Say
Do you have partners? Others who have invested in your business? Their opinion of your sale matters. While most investors think the Sprint and T-Mobile merger will be a good thing in the long run, there are doubters about whether the deal will win the approval of regulators, so there are those who are holding back.
Both companies have large, controlling groups of shareholders who had to approve the proposal even before it became public. If you have investors or partners, keep them in the loop early or they could derail or at least delay any deal you may be able to make.
No matter how big and public the business deal, any business looking to sell or merge can take away valuable business lessons. Need to know more about selling your business and what a business broker can potentially do for you? Contact Rogerson Business Servicesto see how we can help you sell your business.
