Unless you don’t have a dream retirement or you want to work until your last breath, you will think about selling your business one day. When that time comes, you need to make careful decisions and lay a detailed exit plan to ensure success.
The planning process should begin as early as today. Start with answering these questions.
When will you sell your business?
Timing is key. If you have been thinking of selling your business for a long time, then you need to find the best time to do it. Many factors will affect your decision, and these may include your age, the age of your business, your business’s financial standing, and the potential market value of your enterprise. Utah Business Consultants notes that a lawyer or business consultant can help you understand the market and determine the best time to sell.
How much money do you want for your business?
It's not about how much you want for your business; it’s about how much your business is worth. Yes, we’re talking about business valuation. You need to determine what you have so you’ll know what to expect when you sign the deal. The value of your business will depend on your current assets and liabilities, financial status, and many other factors.
To whom will you sell it?
Will you sell your business to an insider or a third party? Your choice will also affect the selling price and your experience. If you sell your business to a third party, you can reduce financial risk and avoid any problems associated with family succession planning. Selling to an insider (a family member or a key employee), on the other hand, gives you the assurance that your business will be in the hands of someone you know and trust.
An Exit Plan is Essential
Selling the fruit of your hard work is one of the biggest decisions you’ll make in your life, and you only have one chance to do it right. Exit strategy planning is important to achieve your personal, financial, and estate planning goals when you decide to sell your business.
When you have an exit plan, you can increase your chances of getting the maximum value for your business, as well as ensure a fast and successful transaction and turnover. The process will be easier if you have an experienced business consultant by your side.