Business Exit

Get More $$$ When Selling Your Business

Sell Your Business With an Exit Strategy!

Selling a business is a tried and true way to get the big payout or retain an ongoing income stream as a way to reap the benefits for all the effort and planning and resources that have gone into the business.

Whatever your situation, selling your business will be one of the most important things you’ll ever do, because unlike every other business decision you’ve made over the years, you’ll only do this once. You get one chance to name the price.

A Clear Business Exit Strategy is The Key to Success

To have a good chance of getting what they want, Sellers should give themselves plenty of time to lay the groundwork for a sale. This isn’t done in a matter of weeks, but rather in months, and in many cases, years. Unfortunately, research shows that 70 per cent of business owners don’t have an Exit Strategy.

The key to effective planning is to understand how to create the value in your business that will give you the Return on Investment (ROI) you desire. If you formulate your plan carefully, over time, utilizing the help of professional advisors, your chances of a successful business sale will vastly improve your chances for success.

The Major Issues You Need to Think About When It’s Time to Sell Your Business:

  • Initial issues in selling out: how should you time your decision and choose experts to help,   and what legal/ethical pitfalls do you need to avoid?
  • Valuations of small businesses: how does the market put a price on a small business,   and what can you do to maximize your own business’s value?
  • Finding a buyer: what do you need to know about working with a business broker,   creating a selling memorandum, and other marketing concerns?
  • Structuring the deal: what are your options as to terms, paying particular attention   to the tax implications of various alternatives? What are your long-term income goals from the sale of the business?
  • Financing the deal: what should you know about seller financing, and third-party financing   through leveraged buyouts?
  • Completing the deal: from the Letter of Intent through due diligence to the closing,   what are the typical steps you can expect to go through in the sales process?
  • After the sale: add a few notes for your plans about your new, unencumbered life!

 The 10 Most Common Mistakes Business Owners Make That Adversely Affect the Salability of Their Business:

  1. The current owner “is” the Business
  2. Incomplete or poorly detailed financial records
  3. A single customer/client represents greater than 20% or revenues
  4. The business owner has “burned out” and have let their business slide
  5. Lack of key managers in place or under-performing Management Team
  6. Customers or clients use their product/service because of price rather than differentiation
  7. Owner has not reported cash sales
  8. Business contracts are not assignable
  9. Excessive debt load
  10. No future growth plan or strategy in place

 How Do You Develop a Business Exit Strategy?

Contact a representative from Strategic Essentials who will assist in beginning the process to develop a Exit Strategy Plan that will satisfy your needs before, during and after your sale.