There’s an old saying that’s very relevant when you’re planning for the eventual sale of or exit from your business: If you don’t know where you’re going, then any road will take you there.
There are so many things you’ll need to consider, and if you want to maximise the value (and sale price) of your business, and make plans for your life after business, while having a relatively smooth handover process…
…ideally you’ll want to start thinking about the issues at least 3 years, and preferably 5 years, before your exit date.
Here are 8 things you’ll probably want to consider:
- Determining the true value of your business today, and then implementing value enhancement strategies that create sustainable, long-term growth that a new buyer will be happy to pay for
- Calculating the net proceeds required after the sale is finalised, so you can create a plan now for achieving that outcome
- Dozens of personal readiness, personal financial planning and lifestyle considerations for when you move to a life after this business, or into retirement
- Deciding exactly what the “deliverables” will be when a new buyer takes over the running of your business
- Estate planning considerations so your legacy is protected for future generations, or distributed according to your wishes
- Deciding whether your target buyer will likely be from within your family, within your existing management team, an outside buyer or a Venture Capital firm, and positioning your business accordingly
- Adding to, retraining or removing team members or management who are not conducive to helping you prepare the business for sale or for your exit
- The sales process you will use to attract the most highly qualified buyers to bid for your business
- And much, much more…
As you can see, there are a host of things to consider when you are planning for the sale of (or exit from) your business.
And making the wrong decisions could cost you hundreds of thousands of dollars in sale value or higher taxes. Not to mention the personal factors you’ll need to consider that we talked about above.
You really need professional advice and guidance to make the most of the work you’ve put in to building your business.
And I can help.
Each month I hold a limited number of Free Business Strategy Sessions designed to help you grow your business while enjoying the ride, while creating a plan to achieve the highest possible sale price, and the lifestyle you want to enjoy, when it’s time to exit.
Would you like to join me?
If you’d like to schedule one of these Free and obligation free one-on-one sessions, even if you’re just curious and you’re not planning on selling or exiting your business at the moment, let me know by using this contact form or call 1300740066 and I’ll set things up for you.
About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group. Partnering with businesses from start to scale thru to sale.
Your Accounting Partners