When contemplating selling your business, there are a number of things to consider in order to know if you and your business are ready:
What is your business worth? Don’t even think about selling until you know what your business should sell for. Are you prepared to lower your price if necessary?
When is the best time to prepare? There is an often-quoted statement in the business world: “The time to prepare your business to sell is the day you buy it or start it.” Unfortunately, that advice is very seldom adhered to. Now really is the time to begin preparing for the day you will sell your business, so it will be ready when you are ready to move on.
Is the business flourishing? Most sellers don’t decide to sell their business until things are not going well. But if you want to get maximum value, sell when business is good.
What are the tax implications? Ask your accountant about the tax impact of selling your business. Do this on an annual basis, just in case. However, the tax impact is only one area to consider, and a sale should not be predicated on this issue alone.
Many business owners want to sell their business to fund their dream retirement, but don’t know where to start.
I’ve used these 5 Critical Questions to help my clients prepare and start increasing their business value.
How will you keep up the business? Continuing to manage the business is a full-time job. Retaining the best outside professionals is the best way to be able to do that while you are also preparing for the sale of your business. Utilizing a professional business intermediary will allow you to spend most of your time running your business.
Is a deal really too complicated? Don’t let what looks like a complicated deal get rejected or ignored. Have your outside professionals ready at hand to see if it is really as complicated as it may look.
Selling a business is one of the biggest decisions a business owner will make in their lifetime. If you take time to consider how and when to do that, and who will help you, you will be better positioned to have a positive outcome from your business sale.