You’ve put a lot of hard work into your business, so when you’re ready for retirement or to move on, you want the company to be in good hands. There’s a lot that goes into selling a business, and you should start planning months, or even years, ahead. Here are just a few things to ask yourself or keep in mind as you’re preparing your exit strategy.
Is the business attractive to prospective buyers?
It’s going to be hard to sell your business if it’s struggling financially. Ask yourself questions like, is your customer base solid? Are your assets in good condition? Is the company in a good location? Are you needed to run the day-to-day operations? How do you retain the key team members through a transition? These are examples of what buyers are considering when looking at your business, so have the answers for yourself.
Who do you want to take over?
Do you want an existing employee with good management skills to take over the business, or are you looking for someone outside the company? One perk of having an employee take over is that you can train them into your position slowly, and they’ll learn quicker since they already know the business.
How much is your business worth?
Many business owners get help from accountants or other specialists in the industry to help them determine the value of their business. This is a number that you want to get right, as you don’t want to end up selling the company for less than it’s truly worth. There are a few different equations to finding the right price, so rely on your financial advisor to help you out.
Would you rather liquidate the business?
Sometimes, business owners don’t want to look for anyone to take over, and they prefer to close up shop and sell their assets. This comes with some cons, however, as you’ll be affecting employees and the clients who’ve been relying on your product or service. Liquidating the business is certainly an option, but it isn’t the best fit for every company.
Are you going to hire a business consultant?
Because there’s so much you have to consider and take care of when planning an exit strategy, it’s a good idea to work with a consultant. They can help you create an exit strategy business plan that explains the different options that are best for the business and for yourself. After all, there is no one-size-fits-all solution for selling a business.
The Fractional Chief Executive Officer at Growth Point Partnership are here to answer your questions and work with you on your exit strategy. Give us a call today!
Read how to make your business more appealing to prospective buyers!