Reasons Why Now Is the Time to Sell Your Company

Selling a business represents a major financial and emotional decision that most business owners will face some day. Often, it can be hard to discern when it’s the right time to sell. Sometimes business owners move to sell too quickly and are left with remorse and no idea what they will do next. Other times, waiting for the perfect time to sell can result in selling a company too late. Although every business owner has their own timeline, here are a few indicators that now is the right time to sell: Emergency circumstances such as a divorce, illness, disability, or loss of partnership may necessitate a quick sale. Unfortunately, a forced sale can reduce the sale price of a company if proper planning wasn’t in place before the emergency. There is no one to inherit the company. If daughters or sons show no interest in running the business and have moved on, business owners need to consider selling when it’s time to retire. If an owner receives a purchase offer out of the … [Read more...]

Understanding Buying and Selling a Business from the Other Side of the Table

When it comes to the process of buying and selling a business, there’s the sellers side and the buyers side of the deal. Because selling a business can be a lengthy process, it’s helpful for buyers and sellers to be knowledgeable about each other’s perspectives. Many sellers are too removed from the risk they took when first starting or buying their own business. Many buyers fail to recognize that there are legitimate reasons an owner might be selling that don’t always include a struggling or failing business. Statistics show that only about one out of 15 would-be business buyers will actually buy a business. This is probably for good reason. Buying a business can be a large financial risk for potential buyers and can often include leaving a stable job for the more uncertain waters of business ownership. From the buyer’s perspective, there are many factors that go into the decision to purchase a business. There is the need to research the company for sale. This includes reviewing … [Read more...]

Do You Have an Exit Plan?

"Exit strategies may allow you to get out before the bottom falls out of your industry. Well-planned exits allow you to get a better price for your business." From: Selling Your Business by Russ Robb, published by Adams Media Corporation Whether you plan to sell out in one year, five years, or never, you need an exit strategy. As the term suggests, an exit strategy is a plan for leaving your business, and every business should have one, if not two. The first is useful as a guide to a smooth exit from your business. The second is for emergencies that could come about due to poor health or partnership problems. You may never plan to sell, but you never know! The first step in creating an exit plan is to develop what is basically an exit policy and procedure manual. It may end up being only on a few sheets of paper, but it should outline your thoughts on how to exit the business when the time comes. There are some important questions to wrestle with in creating a basic plan and … [Read more...]