- Selling a business can be an emotional and tedious process.
- The actual decision to sell is one of the most important and fundamental decisions to be made in the sale process.
- The sale process can be long and tedious and can leave battle scars
- The best time to sell is when you don’t have to and when things are going well.
- The exit strategy should be well mapped out in advance before you run out of time, money, health or steam.
Take the time to ask and think about the following questions:
- What is my true motivation to sell at this time?
- Is there an alternative other than a sale that may accomplish the desired objectives?
- Is the timing appropriate for a sale?
- Do I know the tax implications of a sale?
- Do I know the value I can get and is it acceptable?
- How will I invest the net proceeds?
- How is the after tax return from the invested funds compare to the business?
- Am I willing to remain in a management position?
- Have I considered the implications to other family members and employees?
- Can I replace the prestige and ego satisfaction of being an owner?
- Do I have a genuine commitment to sell after considering these implications?
Be truthful to yourself, intermediaries, advisors and prospective buyers about your motivation to sell. The buyers will always ask why you are selling: ill, tired, age, irreconcilable differences, unprofitable, need for capital expenditure or strategic retreat from non-core business.