It's easy to put off making tough decisions and selling your business may be one of those
One thing is sure is that the business is worth more if it is not reliant on you working in it day to day.
If you want to know why some businesses sell for more, then you need an exit plan
Common pitfalls in exit planning are:
- Doing just that, and not having a plan in place – you just keep on working and this runs the risk that if you are unwell you may have to ‘fire sell’ the business. If this happens you will be missing out on valuable time with friends and family members when you can enjoy the proceeds of the sale of the business.
- Not packaging the business in such a way to make it most appealing to a prospective buyer, and then you will get the best price.
- You need to present the business in the ‘best light’ as part of the due diligence process – all your documentation must reflect this.
Failure to consider ALL the options – and these may include not just selling but management buy-out and business succession to new family members. These may be better options for you.
Stephen R. Covey in his book ‘The 7 Habits of Highly Effective People proposed that business owners must ‘Start with the end in mind’. Is it not time you did the same?