One of the most overlooked questions by any business owner is “When do I get out of it?” It's something every business owner needs to know and plan for.
Being prepared with a sound exit strategy means you can enjoy your business ownership, secure in the knowledge that you'll be able to leave when you're ready, not because you have to.
Part of every business plan should be an estimate of your time in the business.
Are you in it for five to ten years with the idea of selling out for a profit at a predetermined time? If so, you need to have a good idea of the time you want to sell and the price you expect to get.
Your departure from the business might be accomplished in phases. It's often a big help to selling a business if the former owner is willing to stay around in a defined capacity while the new owner acquires an in-depth knowledge of all the systems and processes.
This can also help you make a gradual adjustment if you're retiring or planning a 'holiday' from owning a business for a time.
Remember too that circumstances can change. You might want to sell out well before you'd intended, or even that you want to stay on for a longer period than you anticipated.
You always need to keep the books up to date using comprehensive management reporting systems to run a business properly.
A big added benefit is that this will facilitate the valuation and due diligence processes in a sale.
Refer to article on page 2 about planning for retirement
What is 'due diligence'? Whether
you're the buyer or the seller of a business, you need to know all about this complex topic. We also talk about the need to keep it quiet when you're selling a business.
Our twenty years of experience matching business sellers and buyers has given us a wealth of knowledge that we're pleased to communicate to you in these pages, including six ways to ensure that your business fetches full value when it's sold.
Whether you want to sell a business or acquire one, we're always pleased to share this expertise with you.
Welcome to the first edition of our newsletter for 2007.
Selling or buying a business doesn't have to be a challenging experience. It can be a positive part of making progress to an eventual goal or a way to take advantage of new opportunities.
In this issue we discuss the importance of timing in selling a business. We tell you how important profits and cash flow are to prospective buyers and how they can affect your retirement plans as well.
Refer to article on page 2 about planning for retirement