Are you ready for the exit strategy?
While getting ready for the exit strategy, it is very important to understand the reasons behind the decision to sell your business. The outcome of the sale is directly influenced by your intentions and reasons that contributed to this choice.
1. Analyze the motivations and expectations regarding the sale
First, you need to answer a simple question: why do you want to sell? For financial reasons? Do you want to move cities, but are tied up with the business? Do you want to retire? Do you want to change your field of activity and buy another business? Or are you simply bored? Factors such as illness, losing a family member, or a bored owner are motivations for a quick sale. Under these circumstances, the seller is willing to accept a lower price from the first qualified buyer. If you move too fast, you lose sight of certain aspects, which will result in a lower offer from the Other business owners have a more strategic approach and plan their exit in advance, without hurrying. Their purpose is to put money aside for retirement or to pursue a new business. Under these circumstances, the owner is willing not to rush, prepare his business, and wait for the right buyer. These owners are usually more flexible and available to finance part of the deal, which will lead to a qualified buyer, willing to pay a higher sale price.
2. Define your post-sale interests
All owners hope to get the best price for their business, but many are also considering the future of the business. Some want to get away from the business and not have to deal with it anymore, while others want to participate in the company’s activity, whether as an associate, as an employee, or as a consultant for the new owner. As a seller, is it important that the business stays in the current location? Is there anyone from the competition to whom you would prefer to sell your business (or not)? Is there an employee or a family member who would prefer to take over your business? In the end, the seller’s motivations have a direct impact on both the terms of the transaction and the expectations concerning the sale. Many buyers will want to know the reasons behind the sale. The answer to this question will influence their offer, so make sure you have defined the motivations and expectations that are important to you.
3. Identify and resolve any conflicts that may occur
Once you have examined your motivations to sell your business, conflicts will probably emerge. You request a down payment, but you ask for a high price. These conflicts could jeopardize the success of the sale, so it is time to set your priorities in order, as you formulate a sale strategy. A business broker can help sellers solve these conflicts, prepare for the exit strategy, develop a sale strategy, and get the best results.