Most business owners will only bring a business to sale once in their lifetimes. (Unless you are a serial entrepreneur) Knowing what the process entails ahead of time will allow you to make an informed decision as to what exit and succession options are right for you and your business. Last week, I described how to define a successful business sale. Today I’m going to talk to you about the comoponents that make up the business sale process and I’ll share more details about each item in future posts. I have organized the process into three components.
• Fundamentals of Pricing
• Preparing for a Sale
• Executing the Sale Process
Fundamentals of Pricing
Many factors affect the price a business achieves when it is sold. Some of these are out of your control but many are controllable. Understanding these factors allows you to make a realistic evaluation of the price potential of your business. It allows you to make adjustments that will optimize your exit strategy.
Preparing for a Sale
Many priorities chosen by business owners actually make it more difficult to sell the business and decrease its price potential. With proper preparation, you can put the factors you control in harmony with the goal of achieving the best possible outcome from your business sale.
Executing the Sales Process
The process of bringing your company to market can be time consuming and draining. Time-tested methods can be utilized to ensure efficient use of your time, maximum exposure to the market and the probability of gaining the highest available price for your business. I hope you will find this series a valuable tool for attaining your personal business goals.
Think I left something out? Let me know in the comments.