Much like building a business has several moving parts and difficult moments, so does preparing your business for a sale. When you have decided to sell, it is crucial to begin immediately preparing a succession plan. A good plan requires careful persistence and a foolproof strategy. An experienced business broker will help you organize your thoughts and intentions; they will guide you through these five factors to consider when planning your exit strategy.
1. Taxes
The first step in an exit strategy is notifying tax and estate planners. Therefore, a meeting with your accountant should be scheduled right away. With ample time, it is much easier to establish a tax strategy and assemble several tax returns that display growth and profitability for the last few years.
2. Are You Retiring?
There are a number of reasons why someone might want to sell their business. For one, they may feel burnt out or uninspired and wish to embark on a new endeavor. However, more often than any other reason, retirement is the most common reason for selling a business.
The thought of retiring and handing off the business you have built from the bottom up may be a daunting idea. However, with time, patience, and the help of a professional business advisor, you can determine if you have enough finances to retire and prepare a succession plan.
3. Emotions
Much like the tangible aspects of your business, such as profitability and customer lists, your feelings about the business are highly important. Letting go of something that has been a large part of your life is never easy. In fact, it can cause a large amount of stress and insecurity. However, like preparing your finances, with time, the emotional aspect of selling becomes easier and more manageable with a well-planned strategy.
4. Post-Sale Plans
The emotional element can also be remedied by having a plan for after the sale. This is a part of the exit strategy, much like preparing your finances and establishing an appropriate selling price. Are you hoping to retire and travel? Do you plan to reinvest the profits from selling your business to start a new one? Are you hoping to use the funds to invest in the stock market? Whatever it may be, knowing what your next steps will be after selling will help make the process smoother and even more enjoyable.
5. Broker vs No Broker?
Whether you are retiring or embarking on a new business venture, selling to the right buyer is your main priority. With the help of a business broker, you will not only find the right one, but you can let go of your business with peace of mind and the funds needed to take a needed rest or start fresh.
Contact the professionals at Transworld Business Advisors of South & West Texas (Houston) for a free consultation to discuss the many things you should consider when selling your business. We have 15,000 local buyers in our database and are experienced at connecting sellers and buyers to ensure a smooth and efficient transaction.
