When you decide to sell your business timing is everything.
Being prepared means you are in a stronger position to take advantage of whatever opportunities arise. There are now more businesses than ever before. More people are taking control of their own futures and starting out on their own.
Is the dream of building something bigger than a job driving you to take more risks? Are you creating a business that has long lasting value?
The sacrifices that founders make are justified by the potential rewards when the business is eventually sold. With future value in mind, do you think of your business as your pension fund? Are you mentally, physically and financially investing in your business for your retirement?
You are not alone. As a result, there are more businesses than ever before with owners thinking about retirement and looking for “exit” options. When a business becomes your pension fund, it’s all the more important to know how to extract the value from your business.
But there is a horrifying statistic that many business owners turn a blind eye to:
80% of businesses that are attempting to sell do not get sold.
The majority of business owners only ever sell one business. They are personally poorly prepared (or not at all). Neither is their business. Preparation for the sale process starts with understanding the process and the position of the buyer. Knowing what the buyer is looking for and how it affects the value of the business means the seller gets on the front foot and ready for the final negotiation and ultimately the contract for the sale.
This book shows you the journey you need to go on to sell a business and how to be prepared so that you get the most from a lifetime work. The added benefits of being ready for a transaction well before the transfer of ownership is you have a business that is easier to operate, more enjoyable and less stressful for everyone, including yourself.
Your business will also be worth more!
If you’ve never sold a business before and don’t know what to expect, then you are definitely in the right place. Same goes for buying a business, it’s the same process in reverse. It’s time consuming, stressful and challenging. It’s an adventure.
Some questions you need to ask yourself before launching on this journey are:
- Why am I selling?
Knowing and having clarity on your reasons helps you and your advisors position your business for the right buyer.
- Is it the right time?
Having a finger on the pulse of the market can help you sell for the best value and being ready means you can respond to market changes.
- Am I ready?
It’s a good idea to get the business in good shape but that’s only part of it. Are you personally ready to let go of the business?
- Is the business in the best shape to sell?
A bit like a house in good repair sells more easily and for a better price than one that isn’t, it’s the same in the business world. Being in good shape makes due diligence easier.
- What’s it worth?
Having a realistic idea of your business value means you’re prepared for offers, especially if they are unsolicited. Knowing your business value means you are less likely to leave money on the table.
- Who are the buyers?
It’s likely you already know of potential buyers, even if you haven’t given it a lot of thought. The right broker can find the ideal buyer for you, discretely, if you haven’t got an offer in play. Finding the right buyer for you and your business is something you should give thought to when exploring your reasons for selling. You have more options than you might think.
In the same way a sensible person wouldn’t choose to climb a mountain without some preparation, selling or buying a business is a much better experience if you have the right “kit”. And you need to make sure you don’t take your eye off the business while you are going through the process. Just because a sale process starts is no guarantee it will end with a successful transaction.
Ask yourself “are you ready to sell your business”? Click here to contact Christine by email alternatively you can book a call with the Business Mentor of the Year 2020, author and speaker. Who helps business founders get their businesses exit ready so they can enjoy a happier, richer future. She saves them THOUSANDS and increases the value of their businesses by MILLIONS.