1. Prepare Your Business for Transition
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
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?
2. Prepare Your Family for Life After the Sale
An entrepreneur’s emotional attachment to the business cannot be overstated. Many business owners are not emotionally prepared for life after the sale and fear the loss of stable income. According to our conversations with numerous investment bankers over the years, this is a big reason why many deals fall apart.
Below are the questions you should ask yourself as you and your family prepare for life after the sale of your business.
How will you spend your time once you are no longer involved in the business?
How do you “get paid” for the next several decades after you sell the business?
Take the Buyout Barometer® Assessment
Are you ready to assess your company’s current attractiveness to potential buyers and/or internal successors, as well as your personal readiness for either a planned or unplanned exit of the business?
Click here to answer a few relevant questions and receive your own customized report.
Take the Assessment