After attending a seminar about selling a closely held business, presented by Jim Aussem with Cavitch Familo & Durkin, I had to share some thoughts with you. At BudgetEase, we frequently have clients with goals to grow and sell their business as their primary exit plan. I hope you find these insights as valuable as we do when you start to plan your exit.
Know Your Runway
Selling your business is a full-time job and could take 6 to 12 months, or longer.
Know Your Why
As a seller, you need to articulate the why and why now in a concise answer that you use on a consistent basis.
Inform Your Advisory Team
Talk to your attorney, CPA, bankers and wealth advisors. Consider incenting employees to help improve the value with a Phantom Stock Plan or don’t tell your employees just yet.
Clean It Up
A business that appears well-managed will command a higher price. Stop running owner expenses through your company. Have sound, efficient processes (HR, marketing, operations, etc.).
Tell The Story
A sound succession plan will not only prove the viability of the numbers after the owner’s departure, but also the bloodline of the business will continue to flow with strong customer and employee relationships.
Build Your Team
- CPA - Can help estimate the potential price points and how much you will profit
- Financial Advisor - Can present your options for investing/retiring
- Investment Banker - Helps find prospective buyers, and can prepare a valuation of your business
- Outside Bookkeeper - Prepares the books and financial information
I am Kathy Dise with BudgetEase, here to make YOU more profitable.