Whether you’re looking to retire, get out of an industry, split with partners, or just don’t want to run your business anymore, a proper exit strategy is a must.
By finding the strategy to help you in this regard, you’ll create a clean transition that is beneficial for whatever your step is. Let’s look at a few strategies that could potentially help you out.
- Have Your Business Properly Valued
There are an exponential number of candidates out there who could be ready and willing to buy your business if you can produce accurate historical and financial information.
You’ll need to get a proper valuation as a first step towards this to know where your company stands and how you can ensure a positive return on your investment come selling time.
A proper business appraisal of your business could cost you between $3,000 and $10,000 in most cases. Subsequent comprehensive studies can cost you upwards of $35,000 depending on the size of your business and what type of player you intend to sell your business to (private equity or family office, for example). We recommend that you start with a complimentary listing valuation prior to spending any money to best determine the correct solution for your specific business.
By starting with this type of professional analysis, you’ll learn how much your company is worth, what sort of sales price you can expect in today’s marketplace, what strengths and weaknesses your business currently has, and so much more.
- Consider How You’re Going to Sell, Transfer, or Liquidate the Business and your Ownership Interest.
Start with asking the question, what is the end result you’re looking for?
When you can answer this, you can reverse engineer and decide your best course of action to take today to start moving towards that goal.
For instance, if you are just trying to cut your losses and get a nice check for your troubles, selling out might be best. If this is more of retirement and you’d like to pass the business on to family, it’ll involve facilitating a transfer.
If your business has a lot of assets, liquidation could be best.
Get the advice that’ll steer you in the right direction. Above all, be sure you know what your next “pivot” is.
Many people seek exit strategies not just to get rid of a business, but to start a new professional and personal lifestyle. It’s easier to get through to the other side when you are honest about what you want next. This process starts with expert business seller representation.
- Get the Help of a Business Lawyer
Finally, you’ll always need another set of eyes for the legal end of things.
This way, you’re able to protect the sale or transfer and can weigh every potential downstream implication of negotiating points as they come. Research some business attorneys early in the process so you can get the assistance you require.
Consider These Exit Strategies
A clear exit strategy is essential when you’re making a transition with any business. Use these tips as a guide to start the exciting journey of selling your business.