You own a high-quality business and want to sell. You are motivated to sell and have taken the actions necessary to ensure you can obtain the most for your
But what is a motivated seller? Sellers are motivated when they have had a major life event that strongly indicates that selling the business is a good idea. Or are just old-fashioned burned out. The business owner may recognize they want to sell. They need to sell but something just doesn’t seem right.
If that is you, maybe you haven’t adequately addressed these important questions.
- How much money will you get from the sale of your business, especially considering taxes and deal expenses?
- Are your assets – everything included, especially the net proceeds from the sale – enough to fund the rest of your life in the way you want to live?
- Are there any perks from the business that you will miss not having? How can those be replaced?
- What are you going to do with your time after the business is gone? What will provide you with challenges and a reason to get up in the morning?
- How will not owning a business affect the way your family and community views you? Will it affect your involvement in your community at all? More importantly, how will you view yourself without the prestige of being a business owner?
- Are your employees and customers going to be taken care of? Will they be OK?
These are real things to consider, and not to be taken lightly. Yes, it is important to have your business properly positioned to bring in the most cash after the sale. That includes asset, tax, and financial planning. But these intangibles are just as important.
A well-thought-out Exit Plan, prepared in conjunction with a skilled team of advisors can help you achieve this. Individual investment bankers/business brokers, accountants, and lawyers alone cannot do this. Each has their specialty and while that is important, none of them have the big picture.
Working with a professional that takes a holistic view of your entire situation is what is needed. Planning ahead can uncover the real pitfalls of selling your business. I really believe this.
Juggling the various professionals by yourself and without a plan increases the riskiness of the transition out of your business. It is trite but true – this is the most important transaction of your life. Have you thought of the intangibles also?
A well-thought-out and executed Exit Plan can increase the likelihood that this will work to your satisfaction.
