Selling a Business That is a Going Concern
Strategies to successfully sell a business as a going concern
Selling a business comes with a huge number of variables. The following consider 9 important areas you need to work through if you want to successfully exit the business you own.
Number One: Create and use a team
Selling a business is not a solo job. Just as you have a team around you to make the business successful, putting together an exit strategy and then executing it is a team sport. So don’t try and do it on your own. The members of your team to consider include:
- Accountant or tax agent
- Personal financial planner
- Psychologist or Business Coach
- Insurance expert
- Business Broker
Are you worried about the cost? Your team will get it right for you, so it won’t be a cost but rather an investment.
Number Two: Determine your goals and objectives before moving forward.
Selling your business is a major decision. Be patient with yourself including
- Be patient with those around you.
- How long did it take you to get here and now you are here – what’s the rush?
- Taking action before you determine your goals and objectives can waste time, waste money lets things that can’t be undone and/or cause unintended damage.
- Once you determine your goals and objectives – take action.
Number Three: The tax consequences of selling the business
Are these tax consequences manageable or not? Talk to a tax agent to understand the implications and what strategies can be used to minimize taxes.
Number Four: The Income You Need to maintain your lifestyle
Talk to a personal financial planner to make sure you can achieve your goals. If you can, what are you waiting for?
Number Five: Plan for your future
Talk to a psychologist or business coach to plan your future. Get that degree you always said you wanted to get, learn to fly or scuba dive or be a mentor or join a board or become an advisor or coach a new business owner or master public speaking or leap…then look.
Number Six: Talk About Insurance Coverage
Talk to an insurance specialist and put coverage in place that protects the business owner and any immediate family that need to be taken care of.
Number Seven: Get Legally Ready
Talk to an attorney to make sure all legal matters are fully understood and addressed. Family trusts, wills, powers of attorney etc require refreshing… just in case.
Number Eight: Talk about Inheritance
Talk to a Business Broker to explore the above.
- Is there a natural owner to take over and run the business?
- If the business has more than one owner, what should be discussed and implemented with any ownership changes?
- Can this be done to minimize disruption?
- If not, what’s the end game and is professional help needed?
- What is the date to complete all the changes?
- How much is the business worth?
Number Nine: Establish a deadline and take action
After all the discussion and talk, now it’s time for a clear plan and action by executing the following.
- Create an advisory team to execute the plan and hold your team accountable; especially yourself.
- Consider a leader to execute the plan – yes – delegate
- Conduct exit planning meetings to review schedules, assigned tasks and new information and ideas.
The success of an exit strategy for a business owner starts with the business owner. If the above are discussed, executed and aligned, the rest will take care of itself.
Are you thinking about selling your business? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.
For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.