Whether you have answers to the questions below , if you have begun thinking about any of them, it may be time to begin developing a customized plan to exit your business efficiently, effectively, and on your terms.
“47% of middle-market business owners 55 years and older are interested in selling their businesses within three years and yet over 90 percent of business owners have not initiated the planning process…”
– Bain Surveying Inc. survey, Sept. 11, 2008
- Have you begun to envision “life after the business”?
- Do you have an idea of what financial resources you will need to accomplish this?
- Do you know the fair market value of your business, i.e. what a willing buyer will pay for it?
- Have you had your business appraised to validate what you think it’s worth?
- If your business today is not worth what you feel you need or want to gain from selling it, do you have a strategy to increase its value, either organically or through acquisition?
- Do you have any relatives or employees to whom you’d like to transfer the business?
- If you decide to transfer ownership to family members or employees, do you have a solid plan that ensures you will receive full payment from them? (i.e. if you plan to receive “annuity” payments over time, that they will run the business successfully in order to make the payments)
- Do your plans provide the best return with the least tax liability?