Buyers are as important to your sale as anyone else in the Exit Plan Process.
You’d be surprised how many prospective clients want help with an Exit Plan so they can sell their business – without having a clear idea of why they want to sell. Many of them are just burned out from years of doing the “same old, same old.” It’s been so long since they had fresh ideas about how to make their business thrive, that they assume there isn’t anywhere to go but into retirement.
Others, especially right now, are nervous about the economy and just want to cash in – thinking the old adage about a “bird in the hand” applies to them. I can understand why a recession like the one we’ve just weathered would make a business owner antsy to sell as soon as their business value began an upward swing. But I would caution business owners not to jump ship too quickly – at least not without consulting with an experienced Exit Planning adviser about the best timing for their transition.
Solving the Problem for your Buyer
If you’re thinking about selling your business, can you articulate the reasons why? It’s important that you can, not just because it will help determine what your Exit Planning process will look like. Prospective buyers will look very closely at your reasons for exiting your business. If they think you are leaving because the business has stagnated or reached the peak of its potential for growth, you won’t be in the best bargaining position. You need to be able to explain your exit in terms that will put your business in its best light.
In the process of determining your motives, you may even discover that while you do need a change of pace, you don’t truly need to sell your company to get a second wind of inspiration. Maybe instead you would rather acquire a new line of business, take on a new partner to collaborate with, or even merge with another company. The possibilities may be more varied than you realize, but you won’t uncover them without looking closely at your reasons for wanting to sell your business.
Part of knowing how to articulate your sale is KNOWING if you’re ready in the first place.
Take our anonymous survey below to find out if you’re ready!