In order
to achieve the maximum value for a business, an owner
should ask themselves a series of questions to which
they should have definitive answers prior to deciding on
a strategy that is best suited to meet their needs. As
examples:
What is my strategic
plan?
How much is my company
worth, to whom, and how do I find them?
Should I consider
selling based on an unsolicited and single offer?
Are there ways to make
my company more valuable prior to a sale?
Do I need a formal
valuation prior to a sale?
What are my exit
alternatives?
How will the legal
structure of my business affect its value and a
sale?
How can I keep the fact
that I am considering a sale confidential?
Is this a good time to
sell?
What are the tax
consequences in the sale of my business?
What are my personal
priorities in terms of price, employees, legacy,
etc?
Am I ready to retire
now, or do I have interest in an on-going role in
the company after a sale?
How disruptive will a
sales process be to my business and what should I
expect?
How long will it take?
What advisors do I need
to help me with the sale?
While this is not a
comprehensive questionnaire, it is intended to provide some
insights into the complexities of proper exit planning and
execution. It also demonstrates the need for input and
coordination from various advisors to the company to execute a
successful sale.
Business
Owner Considerations
Is this a good time to
sell?