If you're thinking of selling your business... the next step is a logical one - Plan.
Proactively addressing operational issues positions your business better among Buyers, e.g.: location & revenue growth, increased profit, clean financials, effective systems. As well, a review of legal and tax issues ensures your interests are recognized and in order in the event of a sale.
Despite pre-sale due diligence, conditions emerge that may sour a deal. Following are a few examples:
-Over Dependence on Owner: Can your team effectively support a new owner to sustain & expand the business? Time to transition key client or vendor relationships to team members?
-Star Talent Departures: Consider using non-solicitation and/or non-compete agreements for key employees that can be transferred to the buyer.
-Going It Alone: Owners know how to run their business, sell-side advisors know how to negotiate the best terms and get to Closing. Relying on the expertise of your deal team will save you time, headaches and generate the sweetest return.
-No Growth Plan: Buyers value and reward an owner's initiative in devising a plan for growth. This may include an approach to a new geography, new services, new systems to enhance the bottom line.
-Cold Feet: Selling is emotional so it's understandable when an owner has second thoughts but, it can be costly. To ease the transition - identify life's next step before you exit the business.
No time like the Present to get your business in order... whether a desired sale is close in or years away. Start the process with a business valuation. It's an excellent tool and will likely reveal key areas to improve or tweak to ensure a Sale on Your Terms.