When is the Right Time to Sell?

How often do you exit a business? Most owners only exit a business once in their life. It is a new experience with a series of decisions that can alter the outcome.

Time is a valuable tool in exit planning. In general, the shorter the planning timeframe is, the less profitable the sale may become. Time enables you to refine operations to maximize value; ensures key-men and non-competes are in place and allows owners to remove themselves from the day-to-day operations. Our transition blueprint outlines the process to begin an exit strategy.

What Do Buyers Want?

They want profits or a strategic advantage. They invest to:

  • Make money
  • Expand into a territory
  • Add a product or service line

  • Acquire your customers
  • Cross-sell other services or products
  • Execute a consolidation strategy

When Selling

Owners need to show high value through financial statements and tax returns that reflect high profits. There may be a need to eliminate or refine:

  • Ghost family payrollers, excessive rent paid to themselves, vehicles, non-essential travel, etc.
  • Management might need training, employees may need non-competes, relationships need to be transferred and owners need to be emotionally prepared to leave.

Are You a Baby Boomer?

If so, it is time to talk. We think there will be a wave of businesses looking to exit in the upcoming years. If your company is one of them, we should be working with you to help establish a plan, so you can create a successful transition, whether that be a sale or a succession. Contact us today.