Are you considering making the significant decision to sell your business? If you’re worried about the potential outcomes, you are not alone. Many owners are kept awake with the sheer range of possible eventualities and pitfalls as they choose to sell their business.
Normally, the concerns are based on one of these reasons:
Both of the first two options are well worth reflecting on before you start selling your company, and we have tackled these in previous posts – are you prepared for your business sale? and plan your future beyond your business.
However, this article covers the benefits of exiting, and how the smart business owner can plan for and manage it to their best advantage. Particularly, if as with many business sellers, you intend this to be your ‘final’ career move before retirement.
For a business owner, particularly one who has been a majority shareholder in the same business over the course of a few years, the best of both worlds should mean:
These two outcomes should also work for the new owners. After all, a well-managed transition and stable management team are often top of the list for the discerning buyer.
If you want to de-risk and sell up, then there is the option of remaining as an employee within the business for a few further years. This can be the most rewarding outcome: where you realise a reward for the business and can plan your own retirement without the anxiety about succession plans, or what may happen to the business beyond your tenure.
Once you have come to terms with selling, then you need to consider your exit and, ideally, map it out. Consider these things:
A business owner who has considered all of these things will be in a much healthier position to work with new owners. They will be ready to change from being an owner to employee. It does not mean that there won’t be issues, but it makes it much more likely that the sale will be successful, and a stronger future working relationships.
Whereas the owner who sells in a hurry, or isn’t prepared to work with the new owners, can end up carrying regret and resentment with them long after they have left the company.
Having read this article, you may still be keen on exiting your company as quickly as possible, and certainly, that can be an option, and for some buyers, is a preference.
However, before you jump, consider these observations based on our experience:
A successful company sale is not just about coming away with the best value for your shares, but finding the right balance with your buyer and planning out the most attractive future for you as well as your company.
If you want to map out your business exit strategy, then let’s discuss. Contact Firm Gains or call us on: 0333 050 8225.
Explore the options available to you, improve your chances of successful sale.
If you’re seeking a business to buy, then we can increase your deal flow.
In the early stages of such an important undertaking, it can be a bit of a moral maze: who do you trust?
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