What was your vision for your business when you first started it? Did you just want to be your own boss or earn more money? You probably didn’t think about selling your company to your investors or partners or passing it down to the next generation. And yet, all business owners must eventually create an exit strategy for their company. Maybe it’s time to move on to another project that’s calling to you. Maybe it’s time to retire. Whatever your reasons, you need an exit strategy to ensure that the business you built can continue to thrive after your departure.
There are many options available for an exit strategy, including:
The sale of your business can be part of your retirement strategy, but it can also allow your vision to continue on even when you’re no longer actively involved. But before you can sell the company or pass it down, it’s a good idea to assess your business. The more value you can add, the more you can sell it for when it’s time.
Now that you have decided to sell your company, it’s important to make strategic decisions with that end goal in mind. Do you currently handle a lot of the day-to-day operations of the business? If so, it’s time to train some key employees to do that work in the future. You may even decide to hire new leadership or promote existing employees to take over the management role.
Other strategic decisions can involve investing in new assets, improving your current marketing efforts, or even something as simple as revamping your website. Before you make any major decisions, evaluate them from the new perspective that you plan to sell the business soon. We can talk these decisions through with you to make sure you’re not hindering the potential sale of your business or tying up too much of your cash. Better yet, we’ll analyze the current state of your company’s finances and actively suggest areas for improvement.
Before you look for potential buyers for your business, it’s a good idea to analyze your company’s finances and look for ways to add value. We can help you evaluate your financial situation and help you improve the numbers on the balance sheet. While potential investors care about your employee and customer loyalty, they’re even more interested in the financial health of your business.
As financial planners, we have the knowledge and tools to thoroughly assess your company’s finances and identify the areas that can be improved. This allows you to add value to your business, which will make it easier to sell and increase your final payout at the same time.
Selling a business is a lot more complicated than selling a house, but with an exit plan in place, the ownership transition can become more manageable. When you sell a company, it often involves employees and their payroll, employment contracts, vendor agreements, leases or deeds for real estate, inventory, receivable, payables, sales tax accounts, and more. With all these complexities, it can take months to finalize the sale of a business, but don’t let the timeline discourage you.
An exit plan will take these things into consideration. We can make this transition as easy as possible for you. Whether you’re looking to sell your business or pass it down to the next generation, we’re here to ensure you stay on track with your financial goals.
Even though it’s a business, it’s also very personal to you. Your personal goals can be tightly enmeshed with those of your company. Being an entrepreneur is part of who you are, and maybe your company’s mission aligns closely with your personal values. Therefore, planning your exit strategy is a very personal decision.
We’re here to help. Together, we will help you define your business and personal financial goals and create a plan to reach them. The sale of a business doesn’t happen within the blink of an eye. But with proper exit planning, we can help you reach your desired result and increase the value and final sales price of your company.