Planning On Selling Your Business…
Are you approaching retirement and planning on selling your business?
As an entrepreneur, you dreamed of building your own successful business. After all those years of hard work, you plan to reap the rewards in the form of a successful business sale. Sounds like a great plan! But, making the sale is not as easy as it may appear.
At our firm we like to use the analogy of landing a plane when it comes to thinking about the sale of a business. A successful landing needs careful preparation long before the tires reach the tarmac. We like to start discussions with our clients many years prior to the sale in order to prepare for a successful transition for both buyer and seller. The shorter the time frame you have to prepare can reduce your potential options and increase your costs.
We worked with a client who recently sold his business after spending 40+ years in the automotive industry. He was successful in his field but when it came to selling his business he really didn’t know where to start.
Our initial discussions revolved around what the family wanted to see as far as an ideal outcome. Our questions involved who was going to buy the business.
Would it be sold to a family member or would it be a private sale? What is the business worth? Have you kept updated books and records? Will you sell the assets or the shares of the company? Which scenario works best for this situation and how does that affect the selling price? These are just a sample of the many questions discussed in the initial stages of a sale.
After our initial meetings, we assembled a team of experienced professionals consisting of a lawyer, accountant and realtor to make sure that each step was handled properly. We established precise target dates from the beginning until the final closing date.
Our client successfully sold his business to a local family that was prepared and able to continue the legacy of the company. The seller received the correct value for the business and was elated that his pride and joy of 40 years was going to continue and thrive with a new owner at the helm to treat his customers and friends with the same care and attention he gave them.
Selling a business takes time and can be complicated. Having the right team in place with an experienced advisor leading the way can make a big difference to the outcome.