The energy you spend growing a business is largely futile if the business is not properly transitioned and its value fully realized. In a study of 300 former business owners who recently sold their companies, only 25% felt the sale accomplished their personal and financial objectives.1
Undoubtedly, much of those disappointing results can be attributed to a lack of planning. Nearly two-thirds (64%) of business owners over the age of 50 have no succession plan for their businesses.2
Whether you’re preparing for a third-party sale, assessing private equity interest, or planning for internal succession in your Denver-based business, it’s critical to make sure you’re ready for the transition. These are the questions you should ask yourself as you prepare your business for sale:
- Have you had a recent valuation that indicates what the business is worth?
- Do you know what the business needs to be worth to meet your goals?
- Are you familiar with the common mistakes business owners make when selling their companies?
- Who runs the business if you are no longer around?
- Do you have documented operational processes that can be easily transitioned to a buyer?
- Have you identified key employees critical to post-sale business continuity?