A business valuation is a critical component of a successful exit strategy. Without knowing what your business is worth in the marketplace, it would be difficult to determine a sales price.
One of the best ways you can start this journey it is to familiarize yourself with the process of selling a business.
We understand that exit plans can be enigmas if you have never considered one before, so let’s go over some questions you may have.
Before you open for business, consider your exit strategy. There are three exit strategies: liquidation, passing it down, or selling it.
A comprehensive strategy to get your business up and running should include planning for your own exit. As one of the founders, your departure will have a significant impact on the enterprise itself, your fellow business partners, your customers and your future. So, as counterintuitive as it may seem, how you plan to exit your organization is an important decision to make, even at your business’s onset. Take the time to work with a trusted professional to outline your succession plan so that you are prepared for whatever future you encounter.
One potential solution for succession planning is to find an outside buyer for your company and undertake a long-term deal to gradually cede control to them. Going this route can enable a transition to proceed at a more manageable pace.
If you’re leaning toward a business sale, here are seven ways to prepare.
Take extra care when choosing a successor to give your family business a fighting chance. Here are seven steps to consider.