Selling your business? Consider these 3 things first.
Research the best sale prep and processes before you sign those papers.
Selling your business can be stressful, especially if you move too fast. These tips can help position you for success pre- and post-sale.
Selling is a long-term process
Ideally, you should budget at least 3 years to plan, prepare for and implement the sale of your business. During that time, you’ll want to make sure key business areas are in order, including:
Cleaning up the company’s balance sheet
Considering whether key employees should be retained
Organizing contracts, business records and other important documents
Remember: Take the time to maximize the value of your business.
Sale structure matters
The way you sell your business can have far-reaching implications. There are many approaches to consider, including:
Asset sale vs. stock sale
Cash sale vs. earnout sale
Remember: Consult your team of trusted business, banking, wealth and tax advisors to optimize the sale of your company.
Plan for the sale proceeds
Selling your business is a significant life development for business owners that requires both emotional and financial preparation, as well as a major shift in mindset. Managing wealth differs from business ownership and involves additional considerations, including:
Diversifying your assets
Defining risk for the newly diversified assets
Setting realistic return expectations for any new investments
Remember: Managing wealth often requires more structure and delegation, and a different type of management than running a business.
Although selling a business can be filled with uncertainty, as a successful business owner, you likely have plenty of experience surrounding yourself with expertise. A team of trusted financial advisors who know your company and specialize in the various aspects of selling a business — from preparing and structuring the sale to developing a wealth plan — can help guide you through the process to ensure a successful transition.