Plan your Exit
Do you know how you are going to exit your business? You may have thought of going public, selling to the highest bidder, or retiring and handing over your business to your family.
Many business owners have no exit strategy for their businesses in the event of their disability, retirement, or death. Business owners have a tendecy to put their focus on business survival, future growth, and/or remaining active in business after retirement. A business exit strategy not only means having a plan for the unexpected - financial hardship, injury, disability and even death - it also means having a plan for the succession or transfer of ownership of your business when it comes time to hang up your hat and retire. Many business owners find it difficult to run thier business and find the time to sell their business successfully. Not only will you need to learn the nessesary steps, but time to implement the steps to sell your business. You may want to consider speaking with one of our business brokers to help you plan the best exit strategy.
Regardless of which exit strategy you decide is best for you, a Business Broker is a good resource to help with the process and establishing a value through a business analysis valuation.
If you need a Business Analysis Valuation on your business to determine the value, then there are four basic approaches;
1. Income Approach
2. Market Approach
3. Cost Approach
4. Custom Approach (the valuing entity's preferred blend of the former)
Each approach has its purpose for which type of industry and market you serve. Business owners generally do not have the time nor energy to properly valuate their business. We are happy to assist you at no charge. Simply call or email us. We will provide you with a check list or contact your CPA on your behalf if you prefer.
If you have decided to get out of business and you looked into passing your business on, merge your business or unable to sell, liquidating the assets could be the most appropriate exit strategy. Before you terminate your lease, sell a key piece of equipment, or disconnect your utilities, make sure you have a thorough plan. If you determine that liquidating your assets is your best course of action, one of our Business Brokers can assist you with some key steps.
If you decide selling your business is the best exit strategy, be sure that you cover all your bases. In order to sell your business, one of several items that you will need will be a sales agreement. This is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. You should define everything that you intend to sell; assets, customer lists, intellectual property, goodwill, FF&E and etc. One of our Brokers will be happy to help you through the process.