Running the Comrades may seem like a daunting task but it is possible for anyone who has a reasonable running base, is willing to do the training and has the tenacity to keep going on the day when things get tough.
However, you can’t decide in January to start running and expect to run a strong Comrades in the same year. You need a solid running base of at least 2-3 years and you need to be in relatively good running shape.
The same applies to selling a business. The business needs to have traded successfully for a few years and both the owner and the business need to be ready for sale.
Align Your Expectations
The single biggest reason that businesses don’t sell is due to misalignment between the owner’s expectations and the state of the business. This doesn’t mean the business isn’t a good business, it just means that work might be needed before selling or that expectations need to be changed from silver to bronze.
Just as you need to assess your running preparedness before deciding to run the Comrades, it is vital to consider your business’s fair market value, its sale readiness, and your post tax expectations to see if there is alignment before putting the business up for sale.
This process is referred to as the exit planning stage and is often skipped to the seller’s detriment. Engaging in this exit planning stage may add extra time and cost, but it will add a significant premium on the eventual sale of your business.
The Training Phase
After building your running base, the next step is committing to a rigorous training program. For Comrades, this is usually at least 1,000 kilometres over 5 months. This seems like a lot, but it is only an average of 5-6 hours of training a week.
Similarly, as soon as the business is ready you need to package it for sale, identify potential buyers, contact them, sign NDA’s, present the opportunity to them and get two or three ponies in the race.
This process, like Comrades training, is time-consuming and requires consistent effort. Preparing marketing documents takes 1-2 months, and motivating buyers to negotiate can take another 2-3 months. This is a lot of work for a busy entrepreneur and transaction advisors can help with the heavy lifting. While their experience adds value at key stages, 90% of a transaction advisor’s work involves executing a straightforward, marketing-focused process that comprises a lot of grunt work.
The Final Push
The day of the Comrades is pure joy—no more training, just the thrill of the race. The national anthem and “Chariots of Fire” play, the cock crows, and you are off. The first 60 kilometres fly by with the energy of the crowd and camaraderie of fellow runners. But then you cross into uncharted territory, running further than in training. The day drags on, pain sets in, energy wanes, and doubt creeps in. This is where the real challenge starts. If your training was good and you have tenacity, you will finish—but this end part is where you will need the crowd’s support and your own determination.
Selling a business follows a similar path. Excitement builds as the business is prepped, marketing documents are ready, and potential buyers engage. Negotiations are great fun but as the process continues, fatigue sets in, doubts arise, and buyers may push back on price. This is when the sale process truly starts. With reasonable expectations, a good valuation, thorough preparation, and tenacity, you will sell—but you will need the support of your transaction advisor and determination to see it through.
Agilequity specialises in helping business owners sell their companies. We differentiate ourselves by adding the step of exit planning to make sure we don’t waste your time and money by putting your business up for sale before it is ready.
If you would like to know more about our exit planning or sell side M&A advisory services, we would be happy to have a free consultation about how we can help you.
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