CFO Network’s Nine Point Plan to Sell Your Business
Allen Engstrom, Founder & Principal • June 14, 2024
Less than 40% of businesses listed for sale ever actually sell
Selling a business can be a daunting process for even the most experienced business owner. In fact, it’s generally accepted that less than 40% of businesses listed for sale ever actually sell. There are several common pitfalls, but in most cases a failure to properly plan is the core issue, resulting in no sale, or a sale price below expectations.
Here is a simple nine-point plan to help you begin the process of successfully selling your business or handing it to the next generation. In the coming weeks we will publish blogs addressing each point in depth.
- Personal Readiness: Evaluate personal readiness for exiting the business, including emotional preparedness; transitioning to a new phase of life.
- Financial Goals: Clarify financial goals and objectives for the sale, and financial needs post-sale.
- Market Conditions: Assess current market conditions and trends to determine if it's an optimal time to sell.
- Company Performance: Review the company's financial performance, growth potential, and market position to determine its attractiveness to potential buyers.
- Exit Strategy: Develop a clear exit strategy outlining how the business will be sold, whether through a direct sale, merger, acquisition, etc.
- Legal and Tax Implications: Consider the legal and tax implications of selling the business.
- Employee and Stakeholder Impact: Be prepared to address the impact of the sale on employees, customers, suppliers, and other stakeholders.
- Due Diligence Preparation: Prepare thorough documentation and financial records for due diligence by potential buyers. Address any potential issues proactively.
- Professional Advice: Seek guidance from experienced professionals to navigate the complexities of selling a business and ensure a successful outcome.
For the past 20 years, CFO Network has been helping business owners achieve their goals – including preparing to sell or pass down their business. Our combined 500+ years of experience can help ensure a profitable conclusion to your most complex business issues – including a sale.
If you would like to have a free consultation session with Allen Engstrom concerning how to best position your company for sale click the button below.
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