Start planning for the sale of your business years before you anticipate it happening.
Make sure you’re in the right “state of mind” to begin the sales process and that you’ve determined the objectives you’re hoping to achieve with the sale.
A team of advisors, including legal, tax and valuation professionals, can assist you through the process, helping the transition go more smoothly.
If you’re in the fortunate position of having built a successful business that is attracting the attention of potential buyers, you may already have received unsolicited purchase offers. You might be inclined to continue running your business as you have for some time because it still seems like the right fit for your life. However, it’s never too early to begin thinking about succession planning, even if you anticipate that the sale of your business is years away.
Your business, and the value you can derive from it, is likely to play a critical role in determining your long-term financial security. It makes sense to prepare in advance for the time when you’ll either be courting buyers or receiving offers from potential purchasers.
The decisions you make when you’re transitioning a business can have a significant impact on your employees, your clients, your family and the communities you serve.
Advanced planning is critical to help you:
A wide range of issues should be explored in depth as you determine the most effective strategies to pursue. Addressing the following four factors can help you better prepare for the full impact of a business sale.
Like many business owners, your daily life is probably closely intertwined with the operation of your business. Nobody is likely to match your passion to make it a success. One of the most difficult challenges for many business owners is to find the willingness to “let go” and allow someone else to take charge.
Are you in the right “state-of-mind” to begin the business transition process? Consider the following:
The decisions you make when you’re actively running a business can have a significant impact on your employees, your clients, your family and the communities you serve. The same is true when you’re transitioning out of a business.
While your primary focus is to make sure you obtain the value you need to meet your objectives (such as retirement or to invest in another business), your best transition strategy will try to account for stakeholder concerns as well.
Potential stakeholders may include:
Like any key financial goal in your personal life, it’s important to understand the primary objectives you’re trying to achieve in selling your business. What is it you hope to accomplish, both financially and personally, by stepping away from managing the business? And what are concerns that need to be addressed to help make sure your objectives are met?
Here are a few issues to consider.
Selling a business requires in-depth knowledge of your financial priorities, along with expertise related to this type of transaction. It may require the support of advisors or specialists who can contribute additional insights to the process.
You’ll want to consider:
When the time comes to explore your options for transitioning your business to a new owner, the experienced Business Owner Advisory Services team from U.S. Bank Wealth Management can help you evaluate options, establish a timetable for action, market your business to potential buyers, and represent your interests in the transaction.
Selling your business can require a significant commitment of time and effort on your part. A business exit strategy can help guide the process on your terms.
While a business can be valued in several ways, there are steps you can take that may help you impact its appeal to potential buyers.