If you are like most business owners, you have never sold a business before. That is okay, we have! Here are some common questions we hear from owners.
What is an exit strategy?
An Exit Strategy is a long-term plan for transferring the ownership of a company from one owner to another. The characteristic of a “Plan” means it is conceived long before it becomes desirable or necessary. This is what distinguishes an Exit Strategy from more abrupt actions such as selling out.
As business owners plan for an orderly transition away from their business, it is important to take the time to explore options so that the greatest potential return is achieved for the business. Planning for their Exit from a business can be as difficult as starting a business.
To have a good chance of getting what they want, Sellers should give themselves plenty of time to lay the groundwork for a sale. This isn’t done in a matter of weeks, but rather in months, and in many cases, years. Unfortunately, research shows that 70 percent of business owners don’t have an Exit Strategy.What are the steps to establishing ad exit strategy?
One of the first steps a Seller needs to take is getting a thorough understanding of what they have to sell, what is their business worth. A ‘Confidential Pricing Analysis’ from Liberty Business Brokers of Ontario will provide an expected selling price range and a couple of deal structure scenarios.
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Secondly, the Seller should get a comprehensive assessment of the “Sellability” of their business. The Value Builder System uses an interactive tool to analyze a company across eight different value drivers followed with pragmatic recommendations on how to improve their business making it more valuable.
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The third step is the Seller’s personal financial plan after the sale. Does the sale of the business satisfy the needs the Seller faces during the next 10, 20, or more years.How can I begin developing an exit strategy?
Contact Bizit Business Brokers Network who will assist in beginning the process to develop a Plan that will satisfy your needs before, during and after your sale.